, NAIROBI, Kenya, Jan 26 – The Board of Shelter Afrique has committed to take action on several key managers implicated in financial impropriety following an Independent Forensic investigation report.
The Board of the pan-African housing company singles out the former head of finance among the officials to be held responsible for misappropriation of funds.
The forensic audit was commissioned after the senior manager made public allegations of financial mismanagement at Shelter Afrique.
According to a statement signed by four members of an Ad Hoc Committee created by the Shelter Afrique Board, the forensic report by Deloitte Kenya looked into staff performance and grievances, the effectiveness of internal controls, integrity of the financial statements and governance structure.
“There were notes made to manipulation of the system resulting in misalignment of the systems to the strategic and tactical goals of Shelter Afrique,” states the committee.
Further, the report estimates that Shelter Afrique will need to cover a Sh618 million financial gap created by bad loans which is one of the issues at the centre of allegations at the company owned by 44 African countries.
“The Board notes this estimate with concern but is confident that it does not fundamentally undermine the financial position of the company,” says the statement.
The Board has promised to use the forensic report to improve internal governance by de-concentrating executive power.
Meanwhile, Shelter Afrique will call on shareholders, including the African Development Bank which injected Sh800M last month, to approve a cash call to raise $90 million at its extraordinary shareholders meeting to be held in Nairobi on January 31.