The new management at Standard Group PLC has unearthed fresh details implicating a section of employees in the theft of millions of shillings from the company on a monthly basis.
According to sources that spoke to Kenyans.co.ke, the new committee appointed by shareholders discovered that the company was losing Ksh40 million on a monthly basis to the racket.
The sources explained that the Expenditure Committee investigating losses at Standard Group PLC discovered that staff members who had previously been fired were still receiving salaries.
"It was a mysterious revelation that forced the committee to issue new directives requiring that any expenditure must go through approval processes.
"This includes both big and small expenses. Managers are not at liberty to choose how they would like to spend money," a source stated.
As a result, the Expenditure Committee suspended senior managers at the Finance Departments and ordered for a fresh audit.
The new audit exercise will cover previous years up to when Standard Group PLC started making losses.
The Expenditure Committee assured that the findings of the ongoing probe will be made public to both the staff and shareholders who will then pass resolutions.
"At the moment, the main focus is on lifting the company from the financial ditch that it has found itself, especially following recent losses.
"It is clear that the new committee is more powerful than even the senior managers of the company. The committee does not take orders from anyone," the source stated.
The committee is said to be working with all departments to address the decline in advertising revenue, which is one of the main challenges facing the Standard Group.
The Mombasa Road based media house has taken a huge blow from shifting trends in media consumption as more people rely on digital channels for news.
Previously, Standard Group PLC noted that it was also facing challenge of rising cost of operations. The company stated that it is investing heavily in new technologies and content in order to stay competitive.
