By ANNIE NJANJAMore by this AuthorBy VICTOR JUMAMore by this AuthorNakumatt Holdings had lent its directors more than Sh1 billion in interest-free soft loans by the time it was placed under administration on January 22, 2018, according to a review of the company’s financial statements. The related party transactions were recently disclosed in a report for the year ended February 2018 by Parker Randall Eastern Africa, the retailer’s independent auditor. The auditor did not specify which individuals owe the company money, underlining the weak governance in the board of the former giant retail chain that owes banks, landlords and suppliers as much as Sh20 billion. Nakumatt’s founder and former chief executive Atul Shah was among the two individuals listed as directors of the company as of the report date. The amounts owed by insiders, which did not attract interest charges, had dropped to Sh948 million as of February 2018, the period for which the latest financial records are available.

Source: Daily Nation January 02, 2020 10:07 UTC