[SIZE=6]NCPB sinks deeper into the red with Sh8bn debt[/SIZE]
[SIZE=4]The National Cereals and Produce Board’s (NCPB) cumulative debt hit Sh8 billion in the year to June 2015, pushing the agency deeper into insolvency, Auditor-General Edward Ouko has said.
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Mr Ouko said the agency, which is also the custodian of the country’s strategic grain reserves, posted a Sh95 million loss in the year to June 2015, raising its cumulative revenue resource deficit to Sh7.95 billion.
NCPB posted a Sh216 million loss in the year to June 2014, according to the latest audit report of its books of accounts.
The report comes as NCPB is embroiled in a credibility crisis following revelations that it is holding 400,000 bags of maize worth nearly Sh1 billion that is unfit for human consumption.
Kenya is currently experiencing an acute shortage of maize that has sparked a rallying in flour prices on the retail shelves.
NCPB managing director Newton Terer last Tuesday told the National Assembly’s Public Investments Committee (PIC) that the maize stock has been in the NCPB stores for more than two years.
Mr Ouko said delay in the restructuring the board indicated the existence of material uncertainty that may cast significant doubt on the agency’s ability to continue operating as a going concern.
“My opinion is not qualified in respect to this matter,” he said.
The board is currently holding 2.2 million bags of maize in the strategic grain reserve and only 1.3 million 90kg bags are less than two years old.
Kenya consumes about three million bags of maize monthly, a pointer to the fact that the reserve is holding less than the optimum amount of maize required.
READ: NCPB holds Sh1bn maize unfit for human use
The government on Thursday released 1,005,367 million bags of maize to the millers as part of the plan to bring down the cost of maize flour, which has been steadily rising in the past two months.
The price of a two kilogramme packet of Jogoo flour is currently retailing at Sh110 having risen from Sh95 in March, while Soko and Pembe brands have also jumped by Sh15 a packet.
Maize is the staple food in Kenya whose pricing has a big effect on inflation.
In his report, Mr Ouko said the management could not explain or provide documentary evidence on the Sh78.4 million reflected in the statement of change in equity and described as prior year adjustments.
[SIZE=5]source : http://www.businessdailyafrica.com/NCPB-sinks-deeper-into-the-red-with-Sh8bn-debt/-/539546/3278464/-/k4t2gf/-/index.html [/SIZE]
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