How Njenga Karume’s multi-billion empire began to crumble
An audit report has revealed bow the multi-billion business empire built by former Defence Minister Njenga Karume was already crumbling even before his death in February 2012.
The report by audit by PriceWaterhouseCoopers (PwC) says Karume’s empre was stricken by bad book keeping, insider lending and irregular property transfers.
The report was was prepared in September 2012.
Mr Karume rose from selling charcoal to owning and running enterprises worth billions of shillings by the time of his death three years ago.
The audit report shows that Karume’s nine companies with assets worth billions of shillings made a paltry Sh5 million profit between 2008 and 2012 and that the business magnate’s enterprises mainly survived on borrowed funds and asset sales during the audit period.
Read the full report here.