Kenya Power shareholders have agreed to have fraudulent employees’ assets seized in the company’s ongoing war on graft.
During the firm’s Annual General Meeting on Friday 2, 2021, 99 percent of attending shareholders endorsed legal action and seizure of assets of those found to have been involved in fraudulent deals.
“That the board of directors takes all possible legal action against all persons, employees of the company, suppliers and any other persons, found to have been involved in conflict of interest between their duties and the company’s business thereby causing loss and damage to the company,” reads part of the resolutions.
The resolutions shared with the Nairobi Securities Exchange also show that shareholders voted that the company “should pursue legal action with a view to undertaking a surcharge against the employees, including the past senior executives and other senior persons who have served in management of the company.”
This decision comes in the wake of ongoing forensic and lifestyle audits being pushed by the company as part of reforms aimed at sealing revenue leakages which occur mainly through procurement processes, and improve the company’s bottom line.
The audits are in line with recommendations by the Presidential Task Force on Power Purchase Agreements, which released its report on September 29, advising on a number of measures to bring down the cost of power and streamline operations at the power distributor.
“The ongoing reforms, spearheaded by the board, are geared towards delivering sustainable profitability for the business and ultimately guaranteeing a steady growth in shareholder value in the short term,” chairman Vivienne Yeda said.
The firm’s poor financial performance has seen shareholders go for four years without dividends.
The National Treasury currently holds a majority stake of 50.1 percent. Together with 19 other shareholders, mainly nominees through banks and investment vehicles, they control a 63.5 per cent stake valued at about Sh4.9 billion.
Total shareholders as at June 30, 2021 stood at 30,758.
In a memo to Kenya Power staff issued last month, the firm’s Human Resources and Administration General Manager Cecilia Kalungu-Uvyu, instructed workers to present certified copies of their financial records including bank account and mobile money statements for the last six months by Monday next week.
Kalungu-Uvyu said movable and immovable assets, companies owned or co-owned as well as shares held in various companies should also be declared complete with details of the returns filed with the Kenya Revenue Authority for the last three years.
Last week, the company sent five senior managers on a 60-day compulsory leave as part of the audit process.
“The five managers will proceed on sixty days leave with immediate effect to pave the way for various forensic audits and the review of the supply chain function to be completed,” acting managing director Rosemary Oduor said.
Last month, the utility firm suspended all 59 procurement and supply chain heads to pave the way for a forensic audit to identify areas of possible revenue leakages.
