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"content": "Later on, after the tender was awarded, rationalisation of the project commenced. In 2013, owing to economic and austerity measures, consultations were made between the Ministry of Tourism and the National Treasury where it was agreed that even though the works were tendered and awarded at the cost of Kshs8.96 billion, the project should be rationalised by removing all auxiliary proposed developments and retaining only the functional components. Therefore, the total construction cost was scaled down to Kshs4.93 billion. These consultations culminated in the draft Cabinet Memorandum dated 9th July 2014. On the features of the down scaled project is the financing model for the five star hotel as a component of the whole project to be undertaken with the public-private partnership programme. The Committee made the following general observations: 1. The Fund was without a substantive board of trustees between the period of July 2012 and October 2015 to oversee, amongst other things, the implementation of the Ronald Ngala Utalii College project. The reason we are in this state of affairs is that pursuant to Section 6(2) of the State Corporations Act, the former Minister for Tourism, Hon. Dan Mwanzo, revoked the appointment of the board of trustees and appointed new ones vide Gazette Notice No.10228 dated 20th July 2012 with the aim of improving the Fund‘s performance. The de-gazetted trustees, however, challenged the decision vide court case No.317 of 2012, which was filed by one Abdikadir M. Omar and others against the Cabinet Secretary for Tourism. Although the case was withdrawn in April 2013, the Fund remains without a substantive board. This has affected the performance of the board."
}