Former Oki General Trading Limited chief executive officer Honey Khatwani is alleged to have defrauded the company more than Sh200 million in a span of one year, according to a forensic audit report which unearthed severe misappropriation of the company funds.
The report dubbed Oki General Trading Kenya Limited Forensic Audit Report 2021-2024 which is currently before the Directorate of Criminal Investigations for investigations revealed how Khatwani used dubious means to manipulate the company sales and foreign exchange rates with intent of fleecing the employer of millions of shillings.
The Asian businessman who happens also to be the managing director of Galaxy Middle East and Africa Limited with offices in Mombasa, allegedly defrauded the former employer’s money through issuance of non-existent sales orders to clients.
According to the report, sales transactions costing Sh200,870,680 between May 5 2023 and January 26 2024, lacked sales invoices; goods received notes and local purchase orders believed to be critical documentations for recording sales transactions.
There were no correspondence invoices to support purchases from clients namely Mombasa Maize Millers, Al-Magrab and Classical Garissa worth Sh151,393,000 according to the findings.
It further showed consistent discrepancy in the firm’s foreign exchange rates where exchange rates recorded in its ledger were higher than the official Central Bank of Kenya rates.
The report also revealed how the former CEO made orders for deposits of a total of Sh34 million to be made in his personal bank accounts and another Sh67 million to his company; Galaxy Middle East and Africa Ltd’s bank account, all at Ecobank.
Khatwani who operates between Mombasa and Dubai and is a close business associate of Mombasa tycoon Imran Khosal is suspected to have transferred the loot to his foreign bank accounts in his shrewd attempts to dodge the law from catching up with him.
During his tenure as CEO, the firm also incurred losses worth more than Sh114 million in customs expenses while 11.47 million was a total loss incurred due to variance in the outstanding balance for Nassib account. Sources said officers from DCI have been forced to go slow with their investigations against Khatwani due to his close connection with the powerful and influential tycoon in Mombasa.
Khosla, a business mogul in communication technology, recently seized the opportunity to mingle freely with William Ruto and other senior government officials and politicians at a wedding of his son Zakir Khosla, which was held at their splashy home in Nyali, Mombasa.
Honey Khatwani who still lives in Mombasa is believed to be using his strong connection with those in power to threaten and intimidate his former business associates among them directors and employees of OKI General Trading limited.
The former CEO used threats and coercion during his tenure at th firm to compel employees to make deposits into his own personal bank accounts and that of his own company –Galaxy Middle East & Africa Limited, according to the forensic audit report.
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