Auditor-General Edward Ouko has called for speedy hiring of new directors. PHOTO | FILE
Auditor-General Edward Ouko has expressed concern over a number of State corporations that have been operating without boards and called for speedy hiring of new directors.
In two separate audit reports tabled in Parliament by Leader of Majority Aden Duale, Mr Ouko drew the attention of the appointing authority to fill vacancies at the Bomas of Kenya and Kenya Tourism Board which have operated without board of directors.
Bomas of Kenya has operated without a board since June 2012 while Kenya Tourism Board (KTB) since July 20, 2012.
The Public Service Commission (PSC), in a recent report, said more than 32 parastatals lack functional boards which has made it difficult to implement financial decisions leading to mismanagement of public institutions.
“Without qualifying my opinion, I draw the attention that the company has been operating without a board for over two years after the expiry of the term of previous board in June 2012 contrary to Article eight to 12 of the articles of association of the company,” Mr Ouko said in the Bomas books of accounts for 2013/14 financial year.
“The board is the supreme organ of any organisation in terms of policy matters and oversight over implementation of laid down procedures and regulations. As a result, the company has not been able to fully implement its mandate,” the auditor said.
He said no proper explanation had been provided for the delay in constitution of a board at Bomas of Kenya as required by the Tourism Act, 2011.
He added that KTB continues to operate without board of directors which is in breach of section 6(1) (e) of the State corporations and Tourism Act.
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