Parliament has directed Bomas of Kenya to conduct a fresh valuation of its assets and submit a report within 60 days.
The Public Investments Committee (PIC) Wednesday heard that Bomas of Kenya has not conducted a revaluation of its assets for the last 22 years.
The law stipulates every entity should revalue its property, plant and equipment after every five years.
In the absence of the revaluation report, Auditor-General Nancy Gathungu said she could not ascertain the accuracy of Sh2.3 billion as the value of assets Bomas of Kenya owns as its management stated during the 2018/19 financial year audit.
Ms Gathungu in her 2018/19 audit report pointed out that there is an urgent need for the entity to revalue its assets taking into account the changes that have occurred in the last two decades.
“The company has not revalued its assets in the last 22 years to take cognizance of the drastic change in the value of its assets contrary to the International Accounting Standards,” says Ms Gathungu in her report.
Appearing before the committee yesterday, Bomas of Kenya chief executive Peter Gitaa said the Tourism ministry has been holding their title deed hence it has not been possible to conduct the revaluation exercise in the absence of the title deed.
“The lack of the revaluation report has been a concern to me but I undertake to do it after getting the title deed from the ministry,” said Mr Gitaa.
According to the audit report currently being examined by the committee, the original title deed L.R No.26510 was given to the Ministry of Tourism in 2017 and it has not been handed over to the management of Bomas of Kenya.
The committee expressed concern that without a revaluation report, Bomas of Kenya assets risk being grabbed or sold by individuals who might take advantage of the situation.
PIC vice-chairman Ibrahim Abdisalan (Wajir North MP) said 22 years was a long period for a public entity funded by taxpayers not to know the worth of its assets.
“We want the revaluation report before us after 60 days. Don’t come back to us after the expiry of the time that you were unable to do it. If you have any challenge, you should raise it within the duration we have given you,” he said.