KENYA AIRWAYS: ‘THOSE FOUND CULPABLE WILL FACE THE CONSEQUENCES‘
(Posted 24th May 2016)
As was recently reported here has the Board of Kenya Airways launched a forensic audit into business practises and operations, systems and internal controls, do identify weaknesses and single out those who in the past exploited such control shortfalls for illicit gains.
The Board of Kenya Airways has earlier today now released some preliminary findings made by the forensic auditors and while a full report will be expected at some time in the future, it is clear that the airline and its Board will first want to analyze it, decide on a course of action and only thereafter go public with measures taken.
The Board of Directors of Kenya Airways has received preliminary results of the forensic audit that it commissioned in February this year. Deloitte Consulting are the forensic auditors.
The objective of the forensic investigation is to review the operations, systems and internal controls of the airline, initially over the last five (5) years, with a view to identifying the sources and magnitude of revenue losses and cash flow leakages, evaluating value for money in capital and other expenditures, and reviewing related areas of governance weakness. The expected outcomes of the forensic audit include stopping any revenue and cash flow hemorrhage and implementing an effective internal control environment to support and drive the business going forward. The findings of the forensic audit exercise are, therefore, a key input in, and complement, the ongoing turnaround strategy.
The forensic audit is paying dividends. Based on the preliminary results of the forensic investigations, the Company has identified system and internal control weaknesses and continues to implement far-reaching remedial actions. It has also commenced disciplinary proceedings against staff found culpable. These actions include the suspension of staff members in order to facilitate the successful completion of the forensic investigations. The company is also evaluating the findings with a view to further action against culpable staff, including potential criminal prosecution and recovery proceedings, as appropriate. Meanwhile, further investigations are continuing and additional actions will be taken as a result.
In order to facilitate the forensic investigations, Deloitte has implemented a tip-off facility as an alternative means by which individuals can relay valuable information in an anonymous manner. This facility is exclusively managed by Deloitte outside Kenya and can be accessed by toll free number 0800722626 from Safaricom and Airtel / YU mobile networks only. The facility is not accessible from fixed lines. You can also reach Deloitte online at KQ or on their website at www.tip-offs.com.
Kenya Airways wishes to thank all those who have already provided valuable information and to encourage all stakeholders to use the tip-off facility to provide information that can assist in these efforts to clean up Kenya Airways.
Kenya Airways also wishes to thank our staff, customers and stakeholders for your patience and continued support. We remain committed to the integrity of our operations as we aim to return to profitability and to firmly take back our place as the Pride of Africa.