•She queried why recommendations by PIC for National Land Commission to probe the case has not been implemented.
•NLC had directed Weston to compensate KCAA for the land at the prevailing market rates.
Image: EZEKIEL AMING'A
Auditor General Nancy Gathungu has questioned delays by the Kenya Civil Aviation Authority to recover the Weston Hotel land.
She said the delay is happening despite a recommendation by the National Assembly.
In an audit report tabled in Parliament, the auditor has called out KCAA for failing to implement the recommendation of the Public Investments Committee.
In its 19th report PIC had recommended that the National Land Commission investigates circumstances under which the plot was transferred to private developers.
The House committee, then chaired by Eldas MP Adan Keynan, sought the restitution of the land in favour of KCAA.
Weston Hotel purchased the property in 2007 from Priority Limited/Monene Investment Limited – the latter having been issued with the grant in 2002.
“There was no evidence of action taken on the matters by the management (KCAA) as at June 30, 2020,” Gathungu said in her review of the KCAA books of account.
“In the circumstances, the accuracy, completeness, ownership, and validity of the property balance of Sh18 billion reflected in the statement of financial position could not be confirmed,” Gathungu said.
The ownership of the land, occupied by the hotel belonging to Deputy President William Ruto, is presently at the centre of a court battle.
Weston Hotel is at the Court of Appeal in a case where they have faulted High Court Judge Bernard Eboso of allowing the petition by KCAA to proceed for hearing.
Priority Limited and Monene Investment wanted the suit by KCAA dismissed arguing that the authority should have appealed the decision by the NLC.
NLC had directed Weston to compensate KCAA for the land at the prevailing market rates, a decision Judge Eboso said was not binding.
Gathungu has in the same vein sounded the alarm that the aviation authority is at the brink of losing swathes of its land and an array of property to grabbers for lack of ownership documents.
This is amid findings that 31 housing units in Nyali, Mombasa and 13 others at Bamburi as well as Miritini lack ownership documents.
Also undocumented is an 87-acre parcel of land at East Africa School of Aviation, Nairobi and another 132 acres at Central Transmitting Station along Mombasa Road.
“Ownership documents for a property at Wajir, plot at Bwagamoyo in Kilifi, a plot at Lokichogio, Generator Room at Lodwar in Turkana and plots at Embakasi village were not provided for audit review,” Gathungu said.
She further raised concerns that there was no clear indication of when the preparation of the ownership documents would be completed at the Ministry of Lands and Physical Planning.
“The preparation of the documents was said to be underway at the MOPLS with no indication as to when the process is likely to be completed,” Gathungu said.
She further cited property allocated to third parties, querying why the authority has not taken heed of the recommendations of the Public Investments Committee against the move.
The parcels of land belonging to the authority have been allocated and registered in the name of third parties.
They include a 13-acre parcel at Mtito-Andei-Ngai Ndeithya Settlement Scheme, an unknown size at Bamburi Staff Housing, 0.77 hectares at Central Stores in Nairobi, and 37 acres at East African School of Aviation.
Gathungu has further flagged unsupported revenue totaling Sh1.9 billion, being revenue from KCAA’s income and air passenger service fees.
The amount related to revenue collected by Kenya Revenue Authority and shareable between KCAA, Kenya Airports Authority, and Tourism Promotion Fund.
“The gross revenue from KRA was not provided. In the circumstance, the accuracy, completeness and validity of revenue totaling Sh1.9 billion could not be confirmed.”
Gathungu has also queried KCAA over the uncertainty of recoverability of a Sh262 million debt Kenya Airways owes the regulator.
“Although the general provisions for bad and doubtful debts amount of Sh86 million and Sh348 million respectively has been provided, its adequacy over the national carriers’ debt could not be established.”
KCAA has also been reprimanded over unresolved queries in respect of the review of the year ending June 30, 2019.
(Edited by Tabnacha O)