NAIROBI, Kenya, May 24 – Kenya Airways is set to suspend and prosecute staff found culpable following a preliminary forensic audit report by Deloitte Consulting.
Based on the preliminary results of the forensic investigations that was handed over to the airline’s board, KQ has identified system and internal control weaknesses and continues to implement far-reaching remedial actions.
“These actions include the suspension of staff members in order to facilitate the successful completion of the forensic investigations. The company is also evaluating the findings with a view to further action against culpable staff, including potential criminal prosecution and recovery proceedings, as appropriate,” the firm said in a statement.
Further investigations are continuing and additional actions will be taken as a result.
The objective of the forensic investigation is to review the operations, systems and internal controls of the airline over the last five years.
This is in a bid to identify the sources and magnitude of revenue losses and cash flow leakages, evaluating value for money in capital and other expenditures, and reviewing related areas of governance weakness.
Two directors at the airline, Director Corporate Quality, Safety, Security and Environment Alex Avedi and the Director, Flights Operations, Captain Paul Mwangi already opted for leave.
The firm’s Human Resources Director, Alban Mwendar had earlier resigned but was asked by the board to stay on to oversee the staff rationalisation programme that was announced on March 31, 2016.
The Kenya Airline Pilots Association (KALPA) had been calling for the resignation of the current Chief Executive Mbuvi Ngunze accusing him of mismanagement citing that Ngunze is inexperienced and lacks capacity to bring the airline back to recovery.
Industrialist Dr Chris Kirubi – who is a shareholder in KQ – has called for more help for the airline – saying an overhaul of the management team as well as the operation model will be inevitable going forward.
He says KQ’s management cannot continue doing things the same way and expect positive change.
“We even need to review who the people are sitting in that board. What is their exact contribution to reviving the airline? I think it’s a matter of conscience where people need to come clean and say ‘ I am a baggage in this journey and I am adding no value.’ So if you have a chairman who has no direction he needs to step aside. If you have a board member who has no interest in the airlines except free tickets he also needs to step aside,” Kirubi said.
KQ missed their revenue target by Sh50 billion in the year ended March 2015 posting Sh25.7 billion 2014/2015 loss.