NFM's Search For Internal Auditor

National Flour Mills says it "failed miserably" for almost a year to hire an internal auditor but it is now satisfied that an external auditing company has been managing the process well. The NFM came under some criticism on Wednesday for failing to hire an auditor, almost a year after advertising the vacant position. However, NFM, Director Ross Alexander said it was not a case of not trying. "We spent about a year advertising, doing everything possible to get the right person to fill that vacancy. We failed miserably. Up to today, it is difficult. I don't know what is the situation in the county. It is very difficult to get real qualified auditing people ." Mr. Alexander said due to this, NFM’s Board took a decision to farm out the company’s accounts to be audited by an external auditing firm in the interim. But Member of the Public Accounts (Enterprises) Committee, Keith Scotland SC, questioned whether hiring an external auditor could be done. "Whether or not the implementation of an independent audit facility, pending the coming on board of someone internal, if that offends the Public Enterprise management process." However, NFM’s Corporate Secretary, Sati Jagmohan, said the company was well in its right to do so. "NFM has complied with that requirement by providing an internal audit service. While the service is not based internal to the company, it does not detract from the effectiveness of the service." Permanent Secretary from the Ministry of Trade and Industry, Randall Karim, agreed that there was no violation. He continued, "As to whether that is an optimal solution, optimal arrangement, or is best practice, that is for the Committee to consider." The company is being urged to ensure an internal auditor is hired, even if they have to look overseas. NFM’s Director Ross Alexander said the company may have to do so but cost will be a factor. "Don’t let us ignore the question of cost as well you know. We are in a serious mode of cost cutting. We can't bring in an auditor who may demand more. The point is we have searched, we have not gone internationally. Maybe we might have to consider that. But presently we are very satisfied with the performance of the people that we have hired. As a matter of fact, they are doing an excellent job at less cost." NFM Chief Financial Officer Michael Valentine said Net Profit has been rising over the past few years. "So profitability after tax improved from $1.4 million at the end of 2021 to 6.9 million at the end of 2023. 2023 we moved up to $35.5 million."