Dec 9, 2021

Mawazo Writing Africa

Writing about the main

Sacked KPMG boss seeks millions for racial discrimination

The former CEO of KPMG is demanding millions of shillings from the British-Dutch accounting firm for racial discrimination after his dismissal in 2017.

Richard Boro Ndung’u, who was fired for his dismissal, has an allegedly inappropriate relationship to his personal assistant, KPMG International says not to protect him and instead support his removal as a partner from the regional company.

Mr. Ndung’u accuses the parent company of not hearing and giving him feedback on investigations on his stay at the Kenyan auditing firm after filing a complaint about his dismissal plans.

He believes this violated KPMG’s Complaints and Complaints Code.

The Former CEO is now demanding undisclosed amount of money from KPMG International for post-layoff damages, saying he encouraged local partners to to vote for his removal for an improper relationship with his personal assistant.

The High The court ruled in February that Mr. Ndung’u’s dismissal was unlawfully full and ordered the Kenyan KPMG unit to remove him 379, Ksh 03 million ($ 3.4 million).

Mr. Ndung’u accused the global company of double standards in the treatment of Africans and the other KPMG partners, said the failure to To give him a hearing and protection from punishment when declaring innocence was racially motivated.

He said that European partners who had faced similar allegations were treated in accordance with the KPMG Code of Complaints and treated confidentially.

“My treatment by KPMGI was therefore discriminatory and racially motivated, as the contempt they feel for the citizens and the laws of Kenya in particular and Africa in general,” says Mr Ndung’u in the Hig h Court.

The dispute between KPMG and his ex-employee began on the morning of Monday, October 3, 2016, when Mr. Ndung’u entered the office of then CEO Josphat Mwaura on ABC Place, Westlands, was summoned.

An allegation was made by an anonymous. The person alleged against him for allegedly having an inappropriate relationship with his personal assistant, according to court documents.

Mr. Ndung’u was then asked to surrender his phone and laptop to facilitate the investigation.

He also had to leave his post for two days while the investigation was ongoing. Mr Ndung’u claimed that although he knew it was unlawful for the CEO to confiscate his phone, he still surrendered it without a fight.

The encounter with the CEO sparked a series of events, which culminated when he was released from the KPMG East Africa partnership.

Upon release, Mr. Ndung’u went to court for $ 8.2 million. including damages.

He accused his former employer of unfairly attacking him, intimidating him and disfellowshipping him without trial. The High Court ordered that the matter should be heard by an arbitrator.

At the end of the arbitration by John Ohaga on March 6, 2019, Mr. Ndung’u was a total of 460.5 million the then exchange rates ) and another 1.9 million Ksh (16,917) as special damage. Mr. Ohaga also pointed out that the award would earn five percent annual interest pending settlement by KPMG.

But upset by the arbitrator’s decision, KPMG filed a case with the High Court, which the payout was reduced to 379 million Ksh (3.4 million US dollars).

Mr. Ndung’u said that in October 2016 he spoke about the Chairman of the Senior Partner Forum and the CEO of KPMG South Africa, Trevor Hoole, complained against the local company.

He said KPMG International had been informed of the problem and three days later the parent company had started an investigation into the matter.

Mr Ndung ‘ u accused KPMG International of failing to impartially investigate his complaint by asking the very person he complained about (Mr Mwaura) to investigate.

He says KPMG International is in standstill Contacted Mr. Mwaura and added that this a sign of approval for his dismissal.

“Behind the scenes, KPMGI orchestrated the filing of their original memorandum from KPMG EA and KPMG Kenya and a recent request to overturn the award in order to cause me the greatest possible financial loss “He said.

Mr. Ndung’u, advocate of the law firm Kithinji Marete and Company, says the fact that KPMGI generates a significant portion of the income of KPMG Kenya, which means it is judged by the judiciary local law.

“KPMGI receives high license fees from KPMG Kenya as part of a licensing agreement,” says Mr. Ndungu.

KPMG International has spoken out against the case and has declared, that it was not properly served and that the court has no power to hear the matter.

The global firm has also indicted Mr. Ndung. u seek double enrichment after receiving millions of shillings against KPMG Kenya.