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Concern as FEP liabilities exceed assets by Sh339 Million

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Audit firm PKF Kenya has raised queries on the financial health of Diaspora backed investment firm Fountain Enterprises Programme (FEP) Holdings after its fiscal results for 2017 indicated that its liabilities exceeded its assets by Sh339 million.

According to the company’s 2017 annual report released a fortnight ago, FEP incurred a net loss of Sh649 million in the year ended December 31 and had Sh3 billion accumulated losses against its current Sh2.5 billion net assets.

In recent years, the company has been battling allegations of misappropriation of funds which may have tainted its image with some of its former members – mainly from the Diaspora – even filing petitions in court.

FEP CEO John Kithaka

PKF, however, noted that due to absence of supporting documentation of FEP subsidiaries Fountain Technologies (T) Limited, Fountain Technologies Uganda Limited and Mobikash Afrika Limited, it could not obtain audit evidence of the chama’s financial results.

“These conditions (loss and liabilities), along with other matters … indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern,” said PKF Kenya.

FEP, which boosts a membership of 200,000 people out of which investors are 70,000, has investments in the real estate, savings and loans, insurance and technology sectors.

READ ALSO:   Hope for Diaspora investors as FEP Group bounces back, posts Sh106 million profit

In 2016, the diaspora-backed firm posted Sh100 million as profit for the year.

Its outgoing chairman Erastus Mwongera blamed the firm’s poor financial performance on the prolonged electioneering period and adverse weather conditions that he said affected the economy.

“This resulted to us taking a conservative approach in operations and business while staying alert to identifying new opportunities and building on existing ones,” said Mr Mwongera who retired from the board last month.

The firm is now eyeing its mobile money lending product instaloan and the real estate business with the hope that this will  steer it back to profitability.

Business Daily

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Entertainment

VIDEO: Someone tell New York Times, in Kenya we align the journalists ourselves

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A furious Citizen TV journalist turned on his colleagues on Wednesday for blocking his shot during a media briefing that was being televised live.

Senior Reporter Hassan Mugambi, with vast experience in security matters, had spent hours covering events at 14 Riverside complex and did not take it kindly when his view was blocked

In a video clip that has gone viral, Mugambi is seen smacking other journalists on their backs as he tells them to cower and stop blocking his view.

 

READ ALSO:   Hope for Diaspora investors as FEP Group bounces back, posts Sh106 million profit
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VIDEO: Woman claims singer Ben Githae has abandoned her with twins 

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BY OLIVIA MUNGWANA

A woman has come out claiming  Tano Tena hit maker Ben Githae has left her with two little girls.

The woman, Rose Wanjiru said she had an affair with the gospel singer and got twins from the relationship, but Mr Githae has now neglected taking care of the children.

However, reached for comment, Ben Githae rubbished the claims saying he was paying for rent for the woman.

“If she want to soil my name by going to media and if she thinks going to the media will help her, let her do it, but I have not denied the children are mine,” said Mr Githae.

The woman claims she met Mr Githae in 2011 in Thika where he had gone to perform, she got pregnant in 2016.

According to Ms Wanjiru, the singer helped her for sometime and later withdrew. She claims he at one time sent Mungiki thugs to beat her up when she was pregnant. Ms Wanjiru claims Githae later claimed the children belonged to a Pastor called JJ Gitahi.

“I have told him if the children are not his, let him come we carry out a DNA, he has stopped paying for rent, and claimed the children are Pastor JJ’s,” she said adding that she had met with pastor JJ Gitahi on three occasions then stopped so she could concentrate on Mr Githae.

Singer Ben Githae

See video below

READ ALSO:   FEP President admits all is not well in the company, promises to act

https://m.facebook.com/story.php?story_fbid=1207943562715878&id=438216603021915

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American newspaper New York Times declines to pull down graphic images on Dusit attack

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The New York Times has come under intense pressure from its readers and Kenyans online for publishing graphic images of victims of Tuesday’s terror attack at Dusit D2 Hotel at Riverside Drive in Nairobi.

Kenyans on Twitter came out in droves to condemn the New York Times after it published gory images that attracted a global outcry.

In a statement, the American publication said: “We have heard from some readers upset with our publishing a photo showing victims after a brutal attack in Nairobi.”

“We understand how painful this coverage can be, and we try to be very sensitive in how we handle both words and images in these situations,” the statement read.

Images published by powerful paper on its website showed bodies in the restaurant, victims covered in blood and gory scenes.

This sparked off an online backlash, with some readers asking the publisher to pull them down, because of their distasteful nature.

But the publisher is yet to delete the photos from their story.

READ ALSO:   Hope for Diaspora investors as FEP Group bounces back, posts Sh106 million profit

We want to be respectful to the victims and to others affected by the attack. But we also believe it is important to give our readers a clear picture of the horror of an attack like this — this includes showing pictures that are not sensationalised but that give a real sense of the situation,” the publisher said in a statement published on Twitter on Wednesday morning.

The publisher said they take the same approach worldwide whenever such events occur by balancing the need for sensitivity for respect with its mission of showing the reality of the happenings.

Source: Daily Nation

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