Troubled motor dealer CMC has initiated legal
proceedings against PwC Kenya over the outcome of a forensic audit
the firm performed.
PwC is accused of failing to comply with
generally accepted accounting standards and publishing and
distributing a report that allegedly contains ‘material
The lawsuit is the first against a Kenyan
audit firm and was brought by the CMC’s largest shareholder Peter
Muthoka. It aims to nullify PwC’s forensic audit, which was
conducted late last year.
The forensic audit revealed serious flaws in
dealings between the motor dealer and its former logistic services
provider Andy Forwarders, concluding that CMC owed Andy Forwarders
KES 1.1b ($13,054).
CMC says the audit was not authorised by its
board and is in violation of a memorandum of association.
PwC has denied all charges and argued its
report was compliant with materials CMC had provided.
Earlier this month, CMC’s former auditor
Deloitte and a local bank withdrew their services to the