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Companies

New KCC fails to account for Sh1.7 billion



Auditor General Edward Ouko. FILE PHOTO | NMG 
Auditor General Edward Ouko. FILE PHOTO | NMG  

The New Kenya Co-operative Creameries (KCC) is on the spot for a Sh1.7 billion hole in its accounts flagged by auditors.

In his latest report tabled in Parliament by majority leader Aden Duale, Auditor General Edward Ouko has expressed fear that the public might lose the money.

The firm’s management failed to provide documents of various expenditures amounting to sh1,762,200,310

“In the circumstances, it has not been possible to confirm the accuracy and recoverability of trade and other receivable balance of Sh1,762, 200, 310,” reads the report for the year ended June 30, 2017.

Mr Ouko also pointed out in his report that the corporation failed to provide documents for audit verification of 49 properties with a value of Sh1.9 billion.

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The auditor has also queried 16 disputed properties worth Sh222 million which have been registered in the names of third parties.

“The company has failed to disclose in the financial statements that the Ethics and Anti-Corruption Commission had cleared two disputed properties LS No.37/22 situated in Upper Hill, Nairobi, which had legally been transferred to third parties,” reads Mr Ouko’s report.

The auditor-general also warns that the corporation might lose a five-acre parcel of land where Miritini factory is located. “Five acres out of 32.94 of land LR No MN/VI/2860 on which Miritini factory is located have been encroached by squatters some of who have already put up permanent structures thereby exposing the company to likely loss of vital property…

“In the view of the foregoing, it has not been possible to confirm the valuation, ownership status and the security of properties and equipment balance of Sh2,125,360,155 as at June 2017,” Mr Ouko says.

The latest report further questions an anomaly of Sh21 million, cited as staff debt out of which Sh9.4 million relates to staff who have since left the company although the amount has been fully provided for.

The State corporation could also not explain unreconciled balance amounting to Sh28.7 billion in addition to an unreconciled credit balance of Sh46 million.

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