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February 23, 2019

Bomas can’t account for Sh2.1bn property

A view inside Bomas of Kenya /FILE
A view inside Bomas of Kenya /FILE

The Bomas of Kenya does not possess ownership documents for the land where it’s located and cannot account for property worth Sh2.1 billion, the Auditor General has said.

In his report for 2016-2017, Edward Ouko also observed that Bomas of Kenya Limited has not revalued its assets since 1996 and is therefore unable to analyse drastic changes in the value of its assets.

In his report tabled in Parliament, Ouko said the company has not adhered to International Accounting Standard No. 16, stipulating that property, plant and equipment be revalued every five years.

The report further shows that the original title LR No.12066 (I.R No.26510 ) was released by the Tourism Finance Corporation to the Ministry of Tourism on September 28 last year but the ministry has since not forwarded it to the company.

“This has hindered execution of planned activities such as boundary realignment and valuation of land,” the report stated.

“Consequently, it has not been possible to ascertain the accuracy and ownership of the property, plant and equipment balance of Sh2,148,869,544 as at June 30, 2017.”

Ouko also said the Kenya Urban Roards Authority compulsorily acquired two acres, via a gazette notice of August 8, 2013. The purpose was to rehabilitate and upgrade Langata Road between the Kenya Wildlife Service head office and Bomas of Kenya.

The audit revealed that the company was not paid Sh85 million as compensation for the acquisition based on valuation done by a local company.

“Available records indicate the compensation has not been paid yet. No plausible explanation has been provided for the failure to compensate the company for the land it surrendered for public use several years ago,” the report said.

It also revealed massive grabbing of land belonging to the Kenya Railways Corporation.

The 2016-2017 report also shows the corporation could not account for Sh1.9 million.

“The scrutiny of corporation records indicates that during the year under audit, a total of Sh1,981,920 was collected as museum revenue and surrendered to the corporation cashier for banking. However, no banking slips were availed to confirm banking of the cash,” Ouko said.

The report indicates three acres belonging to KR within Limuru Railway Station were allocated to private developers.

“Land measuring approximately three acres within Limuru Railway Station, constituting industrial plots NO 7882/2-10, was allocated to the private developers,” he says.

Ouko —who flagged grabbing of the corporation’s land in the previous report without action being taken to recover the parcels — also said private buildings have been put up on another two acres within Kikuyu Railway Station. In Mombasa, two parcels adjacent to Mombasa Railway Station have been allocated to developers, the report said.

Last year, the Auditor General was criticised for allegedly portraying some state departments as corrupt.

Some of the most common irregularities include excess expenditure without approval from Parliament, imprest balances not recovered or accounted for at the end of the financial year and expenditures without supporting documentation.

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