PWC TO CARRY AUDIT OF TATU CITY FOREIGN ACCOUNTS.

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TATU CITY CASE(1)
Lawyer Nelson who is representing Vimal Shah,Nahashon Nyaga and Tatu city, leaving Milimani law courts after High court directed audit firm price waterhouse Coopers to conduct an audit of the Tatu city project on Friday 12,June 2015..
BY SAM ALFAN.
High Court on Friday dismissed an application in which one of the international shareholders in the multi-billion Tatu City project had objected to Price Waterhouse Coopers carrying out an audit of the venture.
Justice Eric Ogola ruled that PWC should instead conclude the audit within 45 days for the sake of the project which has dragged due to several court cases.
In his ruling on Friday, he said the audit firm should carry out its work with outmost faithfulness as it is sensitive to the shareholders of the Sh240 billion projects located in Kiambu County.
On May 13, Norwegian Hans Horn in the application claimed that PWC is closely linked to Bidco chief executive officer, Vimal Shah, who is a stakeholder in the project and the firm cannot give a balanced report.
He also claimed that former Central Bank of Kenya governor, Nahashon Nyagah was audited by PWC when he was at the helm of CBK a thing which is likely to interfere with the audit.
In the application, Horn through lawyer Tom Macharia said PWC has been conducting audit in Bidco and its employees have been closely interacting with Shah.
Horns wanted PWC substituted with either Deloitte or Touche, Ernest and Young, KPMG or any other international forensic audit firm.
“PWC has been auditing Bidco in which Shah is the CEO. Since the firm is a client of the shareholder, PWC should be substituted because justice will not be delivered if the firm continues with the audit,” the lawyer said.
But lawyer Nelson Havi for Shah disputed the issues saying he was not appointed by the directors of Tatu City to coordinate the audit.
He said Nyagah was appointed from the side of the plaintiffs while Robert Reid was nominated by the respondents and Shah does not come in contact with PWC in any way.
“The accusation against Shah is baseless. The third defendant (Horn) wants to go against the will of other shareholders,” Havi said.
He said Horn was a managing partner in Ernest and Young in the year 2000 to 2005 and he was only out to give the project a setback.
The firm was approved by the judge in a ruling delivered on March 27 in which the firm was to audit offshore loans borrowed by directors of the project.
In the suit, Tatu City Ltd, Kofinaf Ltd, Nyagah and Shah are the petitioners pitying United States of America investor Stephen Jennings, Frances Holliday, Horn, Thika Coffee Millers tycoon Pius Ngugi, Frank Mosier, Anthony Njoroge and Christopher Barron as the first to the seven respondents respectively.
The cases will b mentioned on July 28 for furthe directions..

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