Kenya: The East African Portland Cement Company (EAPCC) has adjusted its previous financial reports following the discovery of a theft of cement worth US$2m. The fraud led to the under-declaration of its overdraft by US$1.4m for cement lost in 2012, with the firm also overstating its sales and VAT payments by the same amount.
"The company lost cement worth US$1.4m and US$0.66m during the years ending 30 June 2012 and 30 June 2013 respectively through fraud, which was discovered in 2013," the EAPCC said in its latest annual report.
"The financial statements have been restated to correct these misstatements."
The Treasury and the National Social Security Fund (NSSF), which have a combined stake of 52% in the EAPCC, have questioned the accuracy of the EAPCC's accounts, which are examined by the National Audit Office and its agent Ernst & Young. The EAPCC management has disputed this claim.
In 2013, EAPCC suspended seven of its employees who were charged with allegedly stealing cement worth US$2m.
