Nairobi governor Evans Kidero has sued international auditor KPMG for defamation. Dr Kidero seeks to clear his name over graft allegations made against him in the firm’s draft forensic report on Mumias Sugar Company accounts.
He has faulted the audit firm for presenting the report to Parliament, as he holds it is an unconcluded document that was intended for Mumias Sugar’s exclusive use. The document, he holds, contains untrue and defamatory statements about him.
The suit comes just weeks after the Nairobi governor filed another suit against the Nation Media Group and Standard Group seeking damages for alleged defamation for publishing stories about him derived from the document.
“KPMG asserts that the draft report was not a public document but an internal one prepared for the exclusive use of Mumias Sugar Company but proceeded to forward to Parliament an unconcluded draft report which it was yet to verify, as if the report were a public document,” Dr Kidero says.
KPMG prepared the report on demand from Mumias Sugar, which is seeking to bring to book the individuals responsible for its sharp decline from one of the country’s top profit makers to a near total collapse in just three years.
The document implicates the Nairobi governor in the irregular award of tenders worth millions of shillings. Dr Kidero now says that he was absolved of the allegations made by KPMG in a full audit of the struggling sugar miller under his tenure as CEO between 2002 and 2013 done by Deloitte and Touche.
“KPMG withheld it from the public in its draft report that the allegations they were purporting to raise concerned issues that were already audited by Deloitte and Touche, whose opinion KPMG never sought in compiling the so-called forensic audit report,” the Nairobi governor added.
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