KQ sends six home on cash theft claims
A Kenya Airways plane in full flight. The government is committed to revamping the national carrier. FILE PHOTO | NATION MEDIA GROUP
What you need to know:
- Deloitte pinpointed about six individuals whom it suspects are taking advantage of “system and internal control weaknesses” to enrich themselves.
- KQ, which has posted losses for three consecutive years, contracted Deloitte in February to conduct a review of its operations, seeking to identify and plug its cash flow leakages.
- KQ Chairman Dennis Awori said he expects Deloitte to submit the final report to the board of directors by Wednesday next week
Kenya Airways has suspended several staff members for allegedly pilfering funds from the already cash-strapped airline as revealed through investigations by Deloitte Consulting.
Deloitte, which KQ hired to audit financial decisions and practices dating back five years, pinpointed about six individuals whom it suspects are taking advantage of “system and internal control weaknesses” to enrich themselves.
These individuals, most of whom the Daily Nation has established work in the airline’s finance department, have been asked to step aside as Deloitte and KQ conclude investigations, which could culminate in criminal proceedings.
“The company is evaluating the findings with a view to further action against culpable staff, including potential criminal prosecution and recovery proceedings, as appropriate,” KQ’s management said in a statement.
PSTED LOSSES
The national carrier, which has posted losses for three consecutive years, enlisted the help of Deloitte in February to conduct a review of its operations, seeking to identify and plug its cash flow leakages.
Deloitte also interrogated governance weaknesses in the airline and the prudence of the airline’s capital expenditure decisions since 2011, including the ambitious but ill-fated Project Mawingu fleet expansion plan.
Kenya Airways Chairman Dennis Awori said he expects Deloitte to submit the final report to the board of directors by Wednesday next week.
“Investigations have revealed financial misappropriation in the business and that is why some employees have been suspended as investigations continue,” Mr Awori said in an interview.
