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"id": 1459946,
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"content": "write-off of Ksh21,831,115 and Ksh19,812,181 owed by Kenyatta National Hospital (KNH) and the Ministry of Medical Services, respectively. However, the approvals in this respect have not been obtained from the Ministry of Health. Two, the audit query on accumulated land arrears by the University of Nairobi had been considered in the 19th Report of PIC. The Committee recommended for speedy resolution of the matters and the return of the property in question. Those are two issues. The recommendation had been put to the Ministry by the Board to approve a very simple write-off, which was to be transmitted to the National Treasury in accordance with the law. The Ministry has stuck on this right. Therefore, the books of KMTC are always loaded with this as a receivable and yet, the Board has confirmed that, that money cannot be a receivable. There is also a dispute arising from the relationship between KMTC and the University of Nairobi with respect to the rental units they have. This is a very old matter that we need to look at and avoid loading the books of KMTC with unnecessary receivables which are not there. The Committee recommended that within three months upon the adoption of this Report, the National Treasury, the Ministry of Health and the Ministry of Education should first-track the resolution of the matter that is raised in the audit query and the observation of this Committee and report back to the National Assembly. We also recommend that the select Committee on Constitution Implementation and Oversight should follow up on the implementation of the PIC recommendations pursuant to its mandate. There are about four recommendations touching on the issues we are discussing today. If we can follow up on those two recommendations, we should expect to bring this matter to an end. We should not overload the books of KMTC to look as if it has money receivable and yet, we are not helping the organisation. We also noted from the books of KMTC the issue of ownership documents, where 22 parcels of land located at the headquarters and constituent colleges, with a total acreage of 277.587 acres, are valued at Ksh502,485,000. It is only the Nairobi, Kakamega and Port Reitz campuses that possess title deeds. It is very shocking that all the other campuses do not possess title deeds. In the absence of the valuation report for the 32 parcels of land, the property, plant and equipment balance reflected in their own books as Ksh6,393,208,699 as of 30th June 2018, was not fairly stated. You can, therefore, see that you are burdening the books with Ksh6.3 billion but in real sense, you cannot confirm the figure. Our recommendation to the institution is that within three months upon the adoption of this Report, the accounting officer should liaise with the Ministry of Lands, Ministry of Health and the National Land Commission (NLC) to ensure that they secure ownership documents for all the college land and report back to the National Assembly. I wish to bring a specific observation touching on Kenyatta University Teaching, Referral and Research Hospital (KUTRRH). On the issue of property, plant and equipment, the Committee observed that the hospital does not possess title deeds and ownership documents for the 100 acres of land that it sits on. The management of the hospital has made efforts to acquire ownership documents. However, the title deed has not been issued in the name of KUTRRH. The land has not been valued by a competent and registered valuer. Therefore, the value they presented to us of Ksh5,320,106,243 reflected the financial statement as at 30th June 2020, which could not be confirmed. When you look at the area around the hospital and the installations on that land, it cannot be valued at Ksh5.3 billion. It is definitely more than that. We recommend that within three months upon the adoption of this Report, the accounting officers should liaise with the Chief of Staff and Head of Public Service, the Cabinet Secretaries for Lands and Health, and NLC to ensure that they secure ownership documents for all the land and report back to the National Assembly."
}