New KCC denies skimming Sh1.7b
Milk processor New KCC has denied claims that it embezzled Sh1.7 billion.
Chairman Matu Wamae said in a statement that the money in question had been merchandise provided to customers on credit, not expenditure.
“The alleged unaccounted Sh1.7 billion relates to trade and other receivables as at June 30, 2017 and not various expenditures as erroneously reported,” said Wamae, insisting the State corporation had provided the Auditor General with all requested documents.
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In a balance sheet, trade receivable are usually current assets that arise from selling merchandise or providing services to customers on credit.
Supermarkets owed New KCC Sh634 million, hotels, schools and private institutions (Sh546.9 million), VAT refunds and other statutory utility deposits (Sh420.5 million) and Government institutions (Sh160.5 million).
Mr Wamae, however, maintained that the milk processor was still in a strong financial position.