KQ now suspends undisclosed number of staff in fraud probe

Former Kenya Airways finance director Alex Mbugua with managing director Mbuvi Ngunze during the investor briefing In Nairobi on July 30, 2015. /ENOS TECHE
Former Kenya Airways finance director Alex Mbugua with managing director Mbuvi Ngunze during the investor briefing In Nairobi on July 30, 2015. /ENOS TECHE

Kenya Airways has suspended an unspecified number of employees following preliminary findings of a forensic probe into the operations of the company.

The loss making airline said the decision was taken after the probe unearthed system and internal control weaknesses in the company that could have led to revenue losses or higher costs.

The forensic audit commissioned in February, is being conducted by consulting firm Delloitte.

KQ said the audit was necessary to help the airline identify “sources and magnitude of revenue losses and cash flow leakages, and reviewing related areas of governance weakness."

The airline said the staff deemed culpable of various problems cited in the report have been suspended to facilitate the completion of the forensic investigations.

KQ which sunk into a loss of Sh25.7 billion for the full-year period ending

March 31, 2015 said it could take further action, including criminal prosecution and recovery proceedings against the staff mentioned in the probe findings.

“Meanwhile, further investigations are continuing and additional actions will be taken as a result,” said KQ in a statement late yesterday.

In partnership with Deloitte, the airline has also implemented a tip-off facility as an alternative means where individuals can relay valuable information anonymously.


“This facility is exclusively managed by Deloitte outside Kenya and can be accessed by toll free number

from Safaricom and Airtel / YU mobile networks only, and is not accessible from fixed lines," said the airline yesterday.

The announcement comes two months after the airline announced plans to retrench 600 workers beginning this month, four years after it fired 400 staff in a similar exercise.

The airline said the move will help it reduce its costs as it seeks to turn around its fortunes.

The retrenchments, KQ CEO Mbuvi Ngunze said in March, were only 10 per cent of the turnaround programme dubbed Operation Pride, which started late last year.

Operation Pride, which also entails disposal of some assets, will deliver over Sh20 billion value in various initiatives, half of which focus on increasing revenue and cost reduction.

KQ has already implemented some of the initiatives such as the sale and sublease of some aircrafts, the reduction of waste in catering, and renegotiation of some contracts.

WATCH: The latest videos from the Star