CMC hires sleuths to recover millions in secret accounts
CMC Holdings showroom on Lusaka Road in Nairobi’s Industrial Area. The money was accumulated by colluding with suppliers to overcharge CMC on invoices and the monies would be paid back to the directors along with other employees over the last 26 years. CMC Motors has hired investigators and lawyers to recover more than £1.7 million (Sh220 million) stashed away in foreign accounts by past directors.
The secret accounts have seen auditors Ernst & Young express a qualified opinion on the CMC’s latest financial statements, meaning that there were information gaps in the balance sheet and earnings statement. “The company is still pursuing the recovery of any money in the foreign accounts through investigators and lawyers…the board will continue to pursue these investigations until the matter is resolved conclusively,” said Joel Kibe, the chairman of CMC Motors, in a notice to shareholders ahead of the dealer’s AGM on June 12.
“The existence of certain foreign offshore bank accounts set up in prior years by certain past directors ... Forensic investigations by Webber Wentzel, the South African audit firm that the Capital Markets Authority (CMA) hired to probe the affairs of the troubled motor company linked Mr Kiereini, Mr Njonjo, Mr Forster, former (deceased) directors Jack Benzima and P K Jani to the secret accounts.
According to the Webber report, CMC directors built the secret account over three decades by inflating import prices of Land Rover, Nissan UD and Suzuki vehicles.... Read the full, comprehensive news article and discuss at Business Daily Africa