Gumbo calls for forensic audit at KQ after record loss
31 July 2015, 10:30
Nairobi - Parliament’s Public Accounts Committee chairman, Nicholas Gumbo has called for a forensic audit at Kenya Airways (KQ) after the airline announced a KES 29.7 billion loss.
Gumbo said the government should send its oversight committees to KQ to conduct independent forensic investigation into the loss.
“All shareholders at KQ, including the government should act before it gets worse. They should move with immediate speed to seek answers because this is a big puzzle.
“KQ used to perform very well; it puzzles me when it starts making such big losses annually. No one checks KQ’s financial accounts and operations. It recently acquired new aircrafts, which we expected would lead to profits,” Gumbo said.
Read Also: KQ annual pretax loss widens to KES 29.71 bln
KQ partly blamed the loss on a decline in Kenya's tourism sector and travel advisories some countries issued warning about terror threats in certain areas around the country.
However, political analyst Prof. Edward Kisiangani said those were just excuses, and that the the root cause of the loss was corruption and management crisis at the airline.
“KQ broke the record by announcing such a big loss. People should have been sacked at KQ a long time ago, but since corruption is tolerated, then expect it to make more and more losses,” Kisiangani said.
He said many parastatals are finding it hard to deal with corruption, which has become a major problem in the country.
“No one has the muscle to deal with corruption anywhere in Kenya,” he said.
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