A closed Nakumatt branch in Nairobi. FILE PHOTO | NMG
Creditors of troubled retailer Nakumatt will know the true
financial position of the supermarket in September when the results of
an audit ordered by the High Court will finally be presented.
Nakumatt’s
administrator Peter Kahi Tuesday to the Business Daily even as
accounting and audit firm Parker Randall that won the bid to audit
Nakumatt Holding’s books and report to creditors missed the June 30
deadline.
The consultancy firm, which took-up the task
in mid-May, had less than six weeks to prepare the struggling retailer’s
books for the year 2017 to 2019.
The local audit
company, owned by former Mumias Sugar managing director Coutts Otolo and
an affiliate of London-based Parker Randall, has therefore sought an
extension.
High Court ordered that an audit of Nakumatt’s accounts be conducted by June.
“Parker
Randall were doing the audits for three years; 2017, 2018 & 2019.
They have not finalised the audits and have sought an extension,” said
Mr Kahi.
“Given that this is not a public company or bank or NSE-listed,
there is no legal requirement to publish the accounts but the same will
be shared with creditors at the second creditors meeting in September
2019,” he added.
However, while the Nakumatt
administrator pointed out the absence of a legal requirement, court
orders such as the deadline issued by Justice Mary Kasongo in March are
meant to be complied with and judicial officers mandated to penalise
offending parties.
“Compliance with court orders is not
an option for any individual or institution. Neither is it a favour to
be doled out to the Judiciary,” said Chief Justice David Maraga in
February last year when he pointed out the Executive’s display of
contempt for court. Nakumatt, which applied to the High Court to be
placed under administration in October 2017, had 62 branches across East
Africa.
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