Not sure why the audit on the Cargo was backdated to 2001. Raila's name roped in.
Quote:We recorded several instances where inward and outward billing rates charged between AAL and KQ had been higher (inward) or lower (outward) than the approved interline agreement rates between the two entities. Management of KQ were unable to explain inward billing discrepancies in excess of US$5 per transaction, while for outward billing, they explained that the discrepancies were as a result of billing errors within the system, which picks IATA rates that stipulated SPA rates. AAL acknowledge the discrepancies and is prepared to settle this issue with KQ,” the report says.
Quote:It also says that business decisions that had been taken by the board and management of KQ over the period under review, had given AAL strategic advantages to exponentially expand its cargo business in Kenya and Africa. “This resulted in a total cost for KQ amounting to more than Sh400 million over the period 2006 to 2015, in outward billing charges by AAL or approximately Sh40.5 million per month since 2001,” the report reads. “After the winding up of KK in April 2004, AAL was designated as the national cargo carrier for Kenya effective from April 2007.” The Deloitte report is categorical that the KQ board erred in doing away with its cargo arm. It has also emerged that KLM and Martinair Holland who were both shareholders in KQ’s Kencargo, were at the same time its competitors, running parallel cargo businesses from the JKIA. They cooperated with KQ under the direction of Mr Naikuni in the winding-up of KK in return for entering into commercial agreements to carry out cargo business directly with KQ Cargo.
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