Creditors of troubled retailer Nakumatt will know the true financial position of the supermarket in September when the results of an audit ordered by the High Court will finally be presented.
Nakumatt’s administrator Peter Kahi Tuesday to the Business Daily even as accounting and audit firm Parker Randall that won the bid to audit Nakumatt Holding’s books and report to creditors missed the June 30 deadline.
The consultancy firm, which took-up the task in mid-May, had less than six weeks to prepare the struggling retailer’s books for the year 2017 to 2019.
The local audit company, owned by former Mumias Sugar managing director Coutts Otolo and an affiliate of London-based Parker Randall, has therefore sought an extension.
High Court ordered that an audit of Nakumatt’s accounts be conducted by June.
“Parker Randall were doing the audits for three years; 2017, 2018 & 2019. They have not finalised the audits and have sought an extension,” said Mr Kahi.
“Given that this is not a public company or bank or NSE-listed, there is no legal requirement to publish the accounts but the same will be shared with creditors at the second creditors meeting in September 2019,” he added.
However, while the Nakumatt administrator pointed out the absence of a legal requirement, court orders such as the deadline issued by Justice Mary Kasongo in March are meant to be complied with and judicial officers mandated to penalise offending parties.
“Compliance with court orders is not an option for any individual or institution. Neither is it a favour to be doled out to the Judiciary,” said Chief Justice David Maraga in February last year when he pointed out the Executive’s display of contempt for court. Nakumatt, which applied to the High Court to be placed under administration in October 2017, had 62 branches across East Africa.