The East Africa Portland Cement Company factory entrance at Athi River. FILE
By DAVID HERBLING
East African Portland Cement Company (EAPCC) has defended the accuracy of its financial statements as the firm pursues compensation from insurers for lost cement.
The firm last year discovered that its workers had
abetted theft of cement worth Sh181 million covering two financial
years, prompting an adjustment of its 2012 statements.
Portland Cement on Thursday said the adjustment was done in line with international financial reporting standards.
“The board of directors would like to point out
that the financial statements as at June 2013 correctly stated the
amounts attributed to a fraud that occurred in 2012 and 2013,” said the
firm in a statement.
“The company has already started the recovery measures of the lost cement with its insurers.”
The firm says the fraud was engineered during the
transition to a new online accounting system, which led to the
adjustment of sales in the 2012 financial statements.
A forensic audit by consultancy firm KPMG led to
the prosecution of seven employees in May. The employees were fired and
the court case is still ongoing.
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