Alliance One International said discrepancies amounting to possibly USD 40 million (EUR 37.3 million) have been discovered in accounts receivable and inventory at its Kenyan subsidiary, prompting delay of the leaf merchant’s quarterly report.

“No conclusion has been reached regarding materiality,” the company said. The discrepancies may go back to 2008 and were discovered as Alliance One prepared to downsize the subsidiary and no longer source leaf from Kenya. The impact on sales and earnings should be neglible as Alliance One Tobacco (Kenya) Ltd historically has not contributed significantly to the performance of the parent company, the leaf dealer said.