NAIROBI, Kenya, May 25 – Tiger Brands of South Africa says Dr Chris Kirubi had no role in financial impropriety in its Kenyan operation.
The company announced that the management of its Kenyan outfit – Haco Tiger Brands – had been involved in adjusting its profits by up to Sh897 million which reflected negatively on the overall profits of Tiger Brands in the half-year period ending March 2015.
The misappropriation was announced during Tiger Brands interim results presentation.
The firm however says that Dr Kirubi, who is the chairman of Haco Tiger Brands owning 49 percent of the Kenyan company, has assisted in streamlining management lapses.
“It is essential to note that Dr Kirubi, as chairman of the company, has assisted in the guidance of these processes and has had no role to play whatsoever in any inappropriate activity. We hold Dr Kirubi in high regard and respect his achievements, reputation, integrity and ethical approach to business,” Tiger Brands CEO Peter Matlare said.
The group’s operating income went down to Sh13.8 billion representing a 3 percent drop. According to Matlare, the misappropriation will take the company several months to resolve.
“It will take as I suspect till the end of this financial year to make sure we’ve cleaned it out,” Matlare said during an interview with Moneyweb in South Africa.
Haco Tiger Brands Managing Director Geoffrey Kiarie has since been fired.
“We have taken disciplinary action and we’re really making sure our governance processes are up to speed,” Matlare confirmed adding that the management was also involved in pre-invoicing which affected the business.
Tiger Brands, South Africa’s biggest food manufacturer, also has presence in Cameroon, Ethiopia, Nigeria and Zimbabwe.