TABLE OF CONTENTS CHAIRPERSON’S FOREWORD .................................................................................................................. vi EXECUTIVE SUMMARY ............................................................................................................................ vii Committee’s General Observations / Findings and Recommendations ........................................................ viii Ownership of Property, Land and Equipment ........................................................................................ viii Procurement Processes and Management of Contracts ........................................................................... ix Matters pending in Court .......................................................................................................................... xi Delay in appointments of Accounting Officers ........................................................................................ xii Financial Performance and Sustainability of Corporations ................................................................... xii Delay in availing documents to the Auditor- General ............................................................................ xiii Unqualified Opinion ................................................................................................................................ xiv Special Audits .......................................................................................................................................... xiv Implementation of Committee Recommendations .................................................................................. xiv Interest due to delayed payments .............................................................................................................. xv 1.0 PREFACE ........................................................................................................................................ xvii 1.1 Establishment and Mandate of the Committee ........................................................................................ xvii 1.2 Committee Membership .................................................................................................................. xviii 1.3 COMMITTEE SECRETARIAT .............................................................................................................. xix 1.3 Committee proceeDings ............................................................................................................................ xx 2.0 CONSIDERATION OF THE REPORTS OF THE AUDITOR GENERAL ON THE AUDITED FINANCIAL STATEMENTS OF STATE CORPORATIONS .................................................................... 21 2.1 KENYA AIRPORTS AUTHORITY (KAA): FY 2012/2013 - 2015/2016 .......................................................... 21 2.2 KENYA PIPELINE CORPORATION (FY 2015/2016-2016/2017) ........................................................... 57 2.3 KENYA ACCOUNTANTS AND SECRETARIES NATIONAL EXAMINATION BOARD (FY 2015/16 AND 2016/2017) .................................................................................................................................................... 82 2.4 KENYA MEDICAL PRACTITIONERS AND DENTISTS BOARD (FY 2013/14 - 2016/17) .......................... 83 2.5 LAPSSET CORRIDOR DEVELOPMENT AUTHORITY (FY 2013/14 -2015/16) ........................................ 83 2.6 NATIONAL COMMUNICATION SECRETARIAT (FY 2008/09 -2016/17) ............................................... 90 2.7 KENYA URBAN ROADS AUTHORITY (FYS 2014/15 - 2016/17) ........................................................... 91 2.8 KENYA NATIONAL EXAMINATIONS COUNCIL (FY 2015/16 to 2016/17) ........................................... 92 2.9 PUBLIC PROCUREMENT REGULATORY AUTHORITY (FY 2014/15 - 2016/17) .................................... 96 2.10 KENYA WILDLIFE SERVICE (FY 2012/13 – 2016/17) ........................................................................... 97 2.11 SACCOS SOCIETIES REGULATORY AUTHORITY (2014/15 – 2016/17) .............................................. 110 2.12 SOUTH EASTERN KENYA UNIVERSITY (FY 2013/14 -2016/17) ........................................................ 112 2.13 PEST CONTROL PRODUCTS BOARD (FY 2013/14 -2016/17) ............................................................ 129 2.14 STATE CORPORATIONS APPEALS TRIBUNAL (FY 2013/14 -2016/17) .............................................. 135 2.15 COMMUNICATION AUTHORITY OF KENYA (FY 2013/14 -FY 2016/17) ........................................... 142 2.16 BOMAS OF KENYA (FY 2013/14 - FY 2016/17) ................................................................................ 165 2.17 KENYA NUCLEAR POWER AND ENERGY AGENCY (FY 2013/14 – 2015/16) ..................................... 172 2.18 NATIONAL DROUGHT MANAGEMENT AUTHORITY (FY 2013-2017/18) .......................................... 174 ii 2.19 COUNCIL FOR LEGAL EDUCATION (FY 2015/16 -2017/18) .............................................................. 192 3.20 NEW KENYA COOPERATIVE CREAMERIES (FY 2011/12 – 2017/18) ................................................ 199 3.21 KENYA INVESTMENT AUTHORITY (FY 2014/15 - 2016/17) ............................................................. 206 3.22 NATIONAL IRRIGATION BOARD (FY 2014/15 - FY 2016/17) ............................................................ 211 3.23 KENYA VETERINARY BOARD (FY 2014/15-2017/18) ........................................................................ 276 3.24 CENTRAL BANK OF KENYA (FY 2012/13-2017/18) .......................................................................... 280 3.25 KENYA FERRY SERVICES (FY 2015/16-2017/18) .............................................................................. 281 3.26 KENYA NATIONAL ASSURANCE (FY 2014/15-2017/18) ................................................................... 314 3.27 KENYA INSTITUTE OF CURRICULUM DEVELOPMENT (FY 2013/14-2016/17) .................................. 315 3.28 ENGINEERS BOARD OF KENYA (FY 2014/15-2016/17) .................................................................... 316 3.29 KENYA UNIVERSITIES AND COLLEGE CENTRAL PLACEMENT SERVICE (FY 2014/15-2016/17) ........ 317 3.30 COMMISSION FOR UNIVERSITY EDUCATION (FY 2016/17) ............................................................. 317 3.31 KENYA MEDICAL TRAINING COLLEGE (FYS 2012/13 TO 2016/17) .................................................. 318 3.32 NATIONAL CAMPAIGN AGAINST DRUG ABUSE (NACADA) ALCOHOLIC DRINKS CONTROL FUND (FYS 2013/14 TO 2016/17) .................................................................................................................................. 332 3.33 NATIONAL TRANSPORT & SAFETY AUTHORITY (FYS 2015/16 TO 2016/17) .................................... 333 3.34 EXPORT PROMOTION COUNCIL (FYS 2010/11 TO 2016/17) ........................................................... 334 3.35 KENYA PLANT HEALTH INSPECTORATE SERVICE (FYS 2011/12 TO 2016/17) .................................. 334 3.36 EWASO NYIRO SOUTH DEVELOPMENT AUTHORITY (FYS 2012/13 TO 2016/17) ............................ 339 3.37 KENYA NATIONAL COMMISSION FOR UNESCO (FYS 2014/15 TO 2017/18) ................................... 341 3.38 KENYA LITERATURE BUREAU (FYS 2014/15 TO 2017/18) ............................................................... 341 3.39 COAST DEVELOPMENT AUTHORITY (FYS 2012/13 TO 2017/18) ..................................................... 343 3.40 COAST WATER SERVICES BOARD (CWSB) (FYS 2015/16 TO 2017/18) ............................................ 368 3.41 KENYA MARITIME AUTHORITY (KMA) (FYS 2015/16 TO 2016/17) ................................................. 379 3.42 TANA AND ATHI RIVERS DEVELOPMENT AUTHORITY (TARDA) (FYS 2014/15 TO 2017/18) ........... 408 3.43 KENYA PORTS AUTHORITY (KPA) (FYS 2014/15 TO 2016/17) ........................................................ 437 3.45 NATIONAL BANK OF KENYA (NBK) .................................................................................................. 481 3.46 KENYA REVENUE AUTHORITY (KRA) ................................................................................................ 486 3.47 NATIONAL SOCIAL SECURITY FUND (NSSF) FYS 2016/17 AND 2017/2018 ..................................... 493 3.48 KENYA NATIONAL HIGHWAYS AUTHORITY (KeNHA (FY 2014/2015 TO 2015/2016 ....................... 523 iii LIST OF ABBREVIATIONS/ACRONYMS ACU - AIDS Control Unit Ag. - Acting AG - Attorney General CAK - Communications Authority of Kenya CBK - Central Bank of Kenya CEO - Chief Executive Officer DCI - Directorate of Criminal Investigations DG - Director General EACC - Ethics and Anti-Corruption Commission EOT - Extension of Time FY - Financial Year GoK - Government of Kenya IAS - International Accounting Standards ICT - Information, Communications & Technology IFRS - International Financial Reporting Standards IPSAS - International Public Sector Accounting Standards KAA - Kenya Airports Authority KES - Kenya Shillings KPC - Kenya Pipeline Company iv KVB - Kenya Veterinary Board KWS - Kenya Wildlife Service LTD - Limited MD - Managing Director MOU - Memorandum of Understanding M.P. - Member of Parliament NBA - National Biosafety Authority NDMA - National Drought Management Authority NGO - Non-Governmental Organization NIB - National Irrigation Board OAG - Office of the Auditor General PIC - Public Investments Committee PPAD - Public Procurement and Asset Disposal Act PPCB - Pest Products Control Board PPDA - Public Procurement