ICPAK to act on Ciano only after Uchumi adopts forensic report
Former Uchumi chief executive Jonathan Ciano. PHOTO | FILE
What you need to know:
The accountants’ regulatory body says it cannot not take disciplinary action based on report that is still in draft form.
The Institute of Certified Public Accountants (ICPAK) has said Uchumi Supermarkets board needs to adopt a forensic report that accuses former CEO Jonathan Ciano of misconduct before it can take disciplinary action on him.
ICPAK council national chairman Fernandes Barasa said Wednesday the accountants’ regulatory body could not take disciplinary action based on report that is still in draft form.
“We have asked Mr Ciano to step aside merely on the basis of the draft forensic report,” said Mr Barasa on Wednesday on the sidelines of an economic symposium in Nairobi.
“But we have asked the board of Uchumi Supermarkets to adopt the report first then we’ll ask him to appear before our disciplinary committee.”
Mr Ciano remains the chairperson of ICPAK’s disciplinary committee even as allegations of professional misconduct at Uchumi have mounted.
The current CEO Julius Kipng’etich has accused Mr Ciano of having manipulated the retail chain’s financial statements and also being one of the top suppliers of groceries to the supermarket, in conflict of his role as the chief executive.
Mr Ciano is credited with bringing back the troubled retail chain to life after it was declared insolvent on June 1, 2006. He was, however, sacked in June last year after the board accused him of gross misconduct and negligence.
The draft forensic report accuses him of manipulating Uchumi’s financial statements to hide losses of more than Sh1 billion.
It also emerged that he was supplying fresh produce to the Nairobi Securities Exchange-listed firm and paying himself in advance during his term as CEO.
The law provides that a member of ICPAK accused of professional misconduct be heard and, if found guilty, punished by the disciplinary committee through deregistration and fines among other penalties.
Mr Ciano who has denied the charges several times and stressed his willingness to resign should his accusers provide evidence of wrong doing.
He told the Business Daily last week: “Once my accuser steps forward and gives the details I will step aside. It is a voluntary job.”
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
