New KCC boss Matu Wamae refutes Sh1.7 billion loss claims
New KCC chairman Matu Wamae. He has denied an allegation of financial loss at the company. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
- Dr Ouko had 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.
- Mr Wamae said that the firm generated an annual turnover of over Sh9.5 billion last year and realising profits of Sh180 million.
The state-owned milk processor New KCC has refuted claims that public funds were lost as reported by Auditor-General Edward Ouko.
In his report tabled in Parliament by Majority Leader Aden Duale, Auditor-General Edward Ouko expressed fears that the public might have lost money at the facility.
He noted that the firm’s management failed to provide documents of various expenditures amounting to Sh1.76 billion.
“In the circumstances, it has not been possible to confirm the accuracy and recoverability of trade and other receivable balance of Sh1.76 billion,” the report for the year ended June 30, 2017 reads.
But according to the New KCC chairman Matu Wamae, the audit queries related to trade and other receivables arose from the normal business debt owed to suppliers.
TRADE DEBT ACCURACY
Mr Wamae added that the major retail chain owes the firm Sh634 million, hotels, schools and private institutions Sh545 million, VAT Recoverable, Statutory Utility Deposits and Other Sh421 million while government Sh161 million.
“The trade receivables referred to arise from normal business debt that is payable based on agreed credit terms in line with the credit policy and were good business debt outstanding, with most already collected in the year 2017/2018. No money has been lost as alleged,” he said in a statement.
He added: “The alleged unaccounted Sh1.76 billion relates to trade and other receivables as at June 30, 2017 and not various expenditures as erroneously reported. New KCC Ltd also confirms providing all the requested for documents during the said audit exercise. The recoverability and accuracy of the trade debt is therefore not in doubt as reported.”
Mr Wamae noted that the firm is in a strong financial position, generating an annual turnover of over Sh9.5 billion last year and realising profits of Sh180 million.
DISPUTED PROPERTIES
Dr Ouko had 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.
The auditor 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,” Mr Ouko’s report read.
The milk processor says that the title documents for the properties listed in the vesting order were given to New KCC by the advocates handling the sale of the firm’s assets, and they are in the process of reviewing documents of disputed properties to confirm the evidence available in order to file suit.
“New KCC managed to obtain and transfer 42 titles to its name. However, quite a number of the properties listed had no title documents.
"New KCC is pursuing legal channels and also consulting the National Land Commission to ensure titles are issued in respect of these properties,” Mr Wamae added.
