The East Africa Portland Cement Company factory entrance at Athi River. FILE
What you need to know:
EAPCC says in its latest annual report that it discovered theft of cement worth Sh181 million covering two financial years, prompting a review of its books.
Theft of cement at East African Portland Cement Company (EAPCC) has forced the Nairobi bourse listed firm to adjust its financial statements.
The firm says in its latest annual report that it discovered theft of cement worth Sh181 million covering two financial years, prompting a review of its books.
The fraud led to the underdeclaration of its overdraft by Sh124 million for cement lost in 2012, with the firm also overstating its sales and VAT payments by the same amount.
“The company lost cement worth Sh124 million and Sh57 million during the years ended June 30 2012 and June 30 2013 respectively through fraud, which was discovered in 2013,” EAPCC said in its latest annual report.
Statements
“The financial statements have been restated to correct these misstatements.”
The Treasury and the National Social Security Fund, which have a combined stake of 52 per cent, have questioned the accuracy of EAPCC’s books of accounts, which are examined by the National Audit Office and its agent Ernst & Young.
The claims have been rubbished by Portland’s management, which says the books have been audited by a reputable accounting firm and signed off by directors including NSSF —which heads the firm’s audit committee.
