Ministry reacts to audit concerns on Kenya’s properties abroad

The Ministry of Foreign Affairs has responded to issues raised by Auditor-General Nancy Gathungu on the status of Kenya’s properties in missions abroad.

Speaking on behalf of the ministry, Director-General International Conferencing and Media at the Ministry of Foreign Affairs Isaiya Kabira said the office of the Auditor-General may have overlooked some of the information provided by the ministry during management meetings.

The issues around the country’s missions in Washington DC and New York in the US as well as Geneva in Switzerland are contained in the Auditor-General’s report on the accounts of the Ministry of Foreign Affairs for the 2020/21 financial year, currently before Parliament.

“The issues had been brought to the attention of the ministry by the auditors and had been discussed and appropriately explained to the auditors,” said Mr Kabira.

Audit inspection

The Auditor-General’s findings are based on an audit inspection done in the three missions on the use, maintenance, security and management of government property.

The auditors noted that the Kenyan government owns five properties in New York on two acres of land.

The properties include Kenya House, the designated official residence of the Kenyan ambassador to the United Nations.

The government has, however, been incurring Sh24.3 million in annual rent expenses after the ambassador chose not to occupy the official residence.

Mr Kabira on Thursday noted that the ambassador’s residence in New York was built in the late 1970s.

He explained that the property had over the years fallen into disrepair and eventual dilapidation due to lack of a funded maintenance plan, as well as obsolete plumbing, heating and cooling systems.

Not economically viable

He noted that during the 2014/15 financial year, bids were invited for comprehensive renovation of the building, but only one bid was returned, quoting Sh300 million.

“At that price, the refurbishment of the residence would not be economically viable,” he said.

In a letter dated October 7, 2015, the Ministry of Foreign Affairs informed the National Treasury of “this cost” and other shortcomings.

The issues, he explained, included the 23 kilometres to the office and extreme traffic congestion, which means one takes approximately two hours to get to the office.

“In addition, the character of the neighbourhood has drastically transformed, and this has become an unsuitable location for an ambassador due to subdivisions and development of high-rise apartments,” he added.

An inspection of the property by the Public Works department established that renovation of the property would be uneconomical.

 “A report was forwarded to the National Treasury with a request for approval to dispose of the property,” said Mr Kabira.

Acquired strategically

The National Treasury, however, dissuaded the ministry from disposing of the property, noting that it was acquired strategically in the 1970s and is an important asset for the country, he further explained.

“Treasury recommended redevelopment with apartments for staff or for revenue generation, and that funding for purchase of an alternative ambassador’s residence be sourced during the Sector Working Group process for preparation of the 2018/19- 2020/21 medium-term budget,” the former ambassador explained, adding that the ministry’s budget has been too low to proceed with redevelopment or purchase of a new residence.

He nevertheless noted that the property hosts diaspora events, seminars and conferences.

In Washington DC, the Kenyan government owns the embassy building and four residential properties.

Mr Kabira noted that the two staff houses reported by the Auditor-General had remained vacant due to various defects.

He said the mission was in the process of terminating the lease for one of the officers, who would then move into the government of Kenya’s house.

Tree damaged roof

“But unfortunately, a tree fell and damaged the roof of the house, breaking the entrance and electrical cables,” he said.

“It is worth noting that because the ministry is conscious that such emergencies are bound to occur, especially in countries that experience harsh weather conditions, it has endeavoured to maintain an insurance policy for repairs occasioned by such occurrences,” the former envoy clarified.

The ministry says the insurance company took over the property for repairs by a contractor.

“But the process took longer than was expected due to Washington DC permit processes. The mission staff will be moving to the house as soon as the processes have been concluded,” he further noted.

Mr Kabira explained that the second staff house had deteriorated over the years due to lack of adequate maintenance funds.

He said failure of the plumbing, electrical and cooling systems had prompted the officer to vacate pending repairs and renovations.

“This is currently under procurement process,” he noted.

Wrong details

As for the Chancery in Geneva, the report of the Auditor-General indicates that the valuation report had wrong details regarding the title number, size of land, services quoted and plot boundaries of the property.

Mr Kabira said although the valuer indicated the title number as Plot No. 5785, Mission 5, the property is on Plot No. 5816, Mission 6.

He said at the time of the valuation, the land for the proposed construction of a block of five mission offices was on title No. 5785 and Kenya’s portion was Part No. 5.

“Subsequently, the titles for the individual properties were processed and Kenya’s portion is Plot No 5816, which is what is on record, and was explained to the audit team.”

Mr Kabira further said the audit report indicates the land size was 1,500 square metres, yet the actual size is 2,150 square metres.

Actual land size

On Thursday, the ministry confirmed that the actual land size is 2,150 square metres.

“This was also explained to the audit team,” Mr Kabira said.

The ministry, he added, had explained that the presence of a gas pipeline and 24-hour security was included in the valuer’s report “because they were on site at the time”.

“These were construction operational necessities owned and managed by the developer. They were never owned by the mission and were not part of Kenya’s property,” he added.

Although the audit report indicated the land which the Geneva Chancery sits on is hilly, Mr Kabira said that it is on a level ground, “only that the rear of the building is a bit sloppy.”

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