KQ managers to be probed over role in Sh25.7bn loss
Acting Transport Secretary James Macharia Tuesday told MPs that any Kenya Airways officials responsible for the airline’s plunge into losses will face the law.
Mr Macharia told Parliament that past and current officials found engaging in fraudulent management of the airline will be punished.
Mr Macharia said he and his Treasury counterpart Henry Rotich have been engaging the KQ board to establish what led to the airline’s record loss of Sh25.7 billion.
“Both past and present officials found liable for mismanagement of the airline’s accounts at the end of the investigations will be sanctioned,” he said.
He made the remarks at the National Assembly’s Transport Committee and later at the Senate Joint Committee probing KQ’s poor performance.
Mr Macharia said that KQ’s misfortunes had been compounded by historical aspects, including a mismatch of its financial portfolio, fuel hedging losses and lack of proper forecast in its ambitious Project Mawingu.
Between last year and this year the airline registered revenue growth of 3.9 per cent, while fleet ownership costs went up by 107 per cent.
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SOURCE: Business Daily