Kenya Seed Company did not sufficiently account for over Sh10 billion appearing in its financial statement for the year that ended June 30, 2016, the Auditor General Edward Ouko says in a report. The report further indicates that Kenya Seed paid Sh15 million for maintenance of System Application and Product (SAP) software without deducting the 5 per cent withholding tax as required by the Income Tax Act. The firm is therefore liable to penalties and interests attributable to non-compliance which it did not provide in its financial statement. The auditor general also questioned the accuracy and completeness of the firm’s cash and cash equivalent balance of Sh139.1 million due to rampant inconsistency. The auditor general warned that the company risk increasing its contingent liabilities balance beyond the current Sh842 million in case a disaster strike.

Source: The Star December 07, 2017 21:20 UTC