A report by audit firm KPMG has exposed forces behind the massive looting at the Uchumi chain of supermarkets which led to loss of billions.
The report revealed how former CEO Jonathan Ciano and his Chief Finance Officer Chadwick Okumu, masterminded a plot to understate losses and mislead investors after the company was looted by a group of employees and suppliers.
In the revelations, the company made fraudulent payments to their suppliers and suspicious procurement of goods and services, which led to huge losses that were covered up by false financial records.
Analysis of the financial figures unearthed huge differences between a Sh262 Million loss statement released to the public and another record found in Mr Okumu's computer system, indicating the company had suffered a Sh501 Million loss.
However, further assessment by KPMG showed the company had actually made a loss of Sh1.9 Billion in half a year.
A deeper audit indicated that towards the end of 2014, Uchumi made a Sh1.6 Billion sale transaction for its assets with a local leasing company, RentCo, but failed to disclose the move to shareholders and investors who ended up buying property already sold-off.
The forensic study also accused Robert Nyasimi, a director at RentCo, of having forged signatures of the leasing company board members in sealing the deal, in which Uchumi ended up losing.
According to a report by the Nation, the director admitted having manipulated the transaction to favour himself, saying that he did it for his own growth.
Documents stated that the management of Uchumi kept crucial information about the company's financial position to shareholders, who continued to invest in it unaware of the losses that were being made.
