The Auditor General Nancy Gathungu has laid bare the sorry state that the country’s National Museums grappling with and is bankrupted rendering it unable to meet its current financial obligations as they fall due and that it mostly depends on creditors and government grants to cater for its daily operations.
The report by Kenya National Audit Office on the audited accounts of the National Museums of Kenya (NMK), a State corporation for the 2020/21 financial year shows it has current liabilities of Sh276.85million against assets of Sh137.68million translating to a negative working capital of Sh139.17million.
Additionally, the audit shows that the State Corporation recorded a deficit of Sh434.66million, “which depleted revenue reserves” from Sh12.94million to negative Sh421.72million, further casting doubts over its sustainability.
“This precarious financial position has not been disclosed in the financial statements,” the audit presented in parliament last week states.
The auditor also highlighted the fact that the government may not get value for money for the Sh226.02 million Fort Jesus Unesco World Heritage site project.
The audit notes that the delay in completion may result in cost escalation and that the public may not get value for the funds already inflated into the project.
The auditors after visiting the site indicated that the local contractor was not on site and had not been on the ground since December 2021.
The auditor further pointed up the Sh59.35million Vasco Da Gama Seawall and concrete repairs project that has overshot its completion period.
The works on the Fort Jesus project started on September 3,2021 and September 15,2021.
“It was noted that the extended periods had already lapsed and still the works are yet to be completed despite the company being paid Sh108.37million by the end of the period under review, the audit report states.
In February 2022 an audit verification indicated that a football pitch was yet to be completed.
“A public works officer informed the audit team that there was a presidential directive to have an ablution block built on the pitch. Excavations had been done but the ablution block had not been built,” the report states.
The Vasco Da Gama Seawall and concrete repairs project started on May 25,2020 and was to be completed on May 10,2021.
The report indicates that although the contractor had finished the works and handed over the project to NMK, audit verification in February this year disclosed that the pavement on the eastern wall had cracked and part of the ground had sunk.
“Consequently, the poor workmanship could be indicative of a lack of supervision and disregard to the desired value for money to the public,” the audit report says.
