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REPUBLIC OF KENYA

KENYA NATIONAL ASSEMBLY

TENTH PARLIAMENT FOURTH SESSION - 2012

REPORT OF THE JOINT COMMITTEE ON ENERGY, COMMUNICATIONS AND INFORMATION AND HOUSE BROADCASTING COMMITTEE ON THE PUBLIC PETITION ON THE STATE OF AFFAIRS AT THE KENYA BROADCASTING CORPORATION -------------------------------------------------------------------------------------------

CLERKS CHAMBERS, PARLIAMENT BUILDINGS, NAIROBI

MAY, 2012

Table of Contents
LIST OF ACRONYMS AND ABBREVIATIONS ................................................................................................. iii PREFACE ....................................................................................................................................................................v SUMMARY OBSERVATIONS, FINDINGS AND CONCLUSIONS ................................................................. vii SUMMARY RECOMMENDATIONS .....................................................................................................................xi ACKNOWLEDGEMENTS ..................................................................................................................................... xii CHAPTER ONE: INTRODUCTION AND BACKGROUND ................................................................................1 1.0 INTRODUCTION .................................................................................................................................. 1

CHAPTER TWO: SUBMISSIONS BY STAKEHOLDERS ...................................................................................3 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 INTRODUCTION .................................................................................................................................. 3 MEETING WITH THE PETITIONERS (KBC STAFF) ................................................................................. 3 MEETING WITH THE KBC BOARD OF DIRECTORS AND MANAGEMENT ..................................... 15 EVIDENCE BY MINISTER FOR INFORMATION AND COMMUNICATIONS .................................... 23 EVIDENCE BY FORMER MANAGING DIRECTORS OF KBC........................................................... 26 EVIDENCE BY THE MINISTER FOR FINANCE.................................................................................... 32 MEETING WITH ENGINEER GICHINA KANYI................................................................................... 34 MEETING WITH THE PERSON ACCUSED OF SEXUAL HARASSMENT ............................................ 35 MEETING WITH MR. PATRICK QUARCOO...................................................................................... 36 ADDITIONAL EVIDENCE BY THE MANAGEMENT OF KBC ............................................................ 37 EVIDENCE FROM THE WITNESS OF SEXUAL HARASSMENT........................................................... 38 MEETING WITH ENG. PHILLIP OKUNDI ............................................................................................ 39 MEETING WITH THE CHIEF OF THE RADIATION PROTECTION BOARD ........................................ 40 WRAP UP MEETING WITH THE MINISTER FOR INFORMATION AND COMMUNICATIONS ........ 41 FINAL SUBMISSION BY THE PETITIONERS ......................................................................................... 42 VISIT TO KBC OFFICES IN KISUMU ................................................................................................... 44 VISIT TO KBC OFFICES IN NAIROBI .................................................................................................. 46 VISIT TO KBC OFFICES IN NYERI....................................................................................................... 47 VISIT TO KBC OFFICES IN MOMBASA ............................................................................................. 48

CHAPTER THREE: COMMITTEES FINDINGS, OBSERVATIONS AND CONCLUSIONS......................51 CHAPTER FOUR: RECOMMENDATIONS ........................................................................................................60 ANNEXES

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LIST OF ACRONYMS AND ABBREVIATIONS AMTS BBC BSI CEO CCK COR COTU CTO EABC EACC EMU FKE FM HR HRM ICT KACC KBC KBS KIMC KNA KRA KU LPO MBA MD MoU MW Assistant Manager Technical Services British Broadcasting Corporation Broadcast Solutions International Ltd Chief Executive Officer Communication Commission of Kenya Code of Regulations Central Organization of Trade Unions Chief Technical Officer East African Broadcasting Corporation Ethics and Anti-corruption Commission Efficiency Monitoring Unit Federation of Kenya Employers Frequency Mode Human Resource Human Resource Manager Information, Communication Technologies Kenya Anti-Corruption Commission Kenya Broadcasting Corporation Kenya Broadcasting Services Kenya Institute of Mass Communication Kenya National Assembly Kenya Revenue Authority Kenyatta University Local Purchase Orders Masters of Business Administration Managing Director Memorandum of Understanding Medium Wave
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PAYE PBU PCA PCK PNU PPS TARDA UoN VoK

Pay As You Earn Parliamentary Broadcasting Unit Pay Change Advice Postal Corporation of Kenya Party of National Unity Presidential Press Service Tana and Athi River Development Corporation University of Nairobi Voice of Kenya

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PREFACE Mr. Speaker Sir, It is my honour and pleasure to present to this August House, the report of the Joint Committee on Energy, Information and Communications; and the House Broadcasting Committee on the petition by the Kenya Broadcasting Corporation (KBC) employees. Mr. Speaker Sir, On Thursday 1st of March 2012, the Hon. John Mbadi M.P tabled a petition signed by 248 employees of the Kenya Broadcasting Corporation proposing various reforms at the Corporation. The petitioners cited that:1. Whereas Article 34(4) of the Constitution provides that all State-owned media should be free to determine independently the editorial content of their broadcast or other communications, be impartial and afford fair opportunity for presentation of divergent views and dissenting opinion, the Kenya Broadcasting Corporation which was established by the Kenya Broadcasting Corporation Act, Cap.131 operates in an environment of interference, political manipulations and low employees terms of service and oppressive wages. 2. That the management of KBC has over the years failed to address the grievances of their staff and instead resorted to victimization whenever a member of staff raises a concern. 3. That the KBC has been mismanaged leading to brain drain, loss of revenue, and lethargy amongst members of staff. Mr. Speaker Sir, The petitioners prayer was that the Parliament of the Republic of Kenya:i) Do investigate the Corporation with a view to establishing the factors that have led to the current state of affairs at the KBC; ii) Do investigate the concerns related to the welfare of staff of the Corporation with a view to addressing their grievances and offering a long-term solution;
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iii) Do review the Kenya Broadcasting Corporation Act, Cap.131, with a view to harmonizing the law with the Constitution and strengthening the competitiveness of KBC; Following the tabling of the petition and in line with the Standing Order No. 210 (1), the Speaker directed the Joint Committee on Energy, Communications and Technology; and the House Broadcasting Committee chaired by the Hon. James Rege, MP and the Hon. Nicolas Gumbo, MP respectively to investigate the matter and table the report in the House within 21 days. Ensuing from this ruling, the joint Committee held a meeting on 3rd March, 2012 to deliberate on its programme of activities. Committee composition The Joint Committee comprises the following Members: 1. The Hon. (Eng.) James Rege, M.P. 2. The Hon. (Eng.) Nicolas Gumbo, M.P 3. The Hon. Clement Wambugu. M.P 4. The Hon. Maina Kamau, M.P 5. The Hon. Emillio Kathuri, M.P 6. The Hon. Joshua Kutuny, M.P 7. The Hon. Charles Keter, M.P 8. The Hon. David Koech, M.P 9. The Hon. Cyprian Omollo, M.P 10. The Hon. Aden Duale, M.P 11. The Hon. Prof. Philip Kaloki, M.P 12. The Hon. Aden Keynan M.P 13. The Hon. Ekwee Ethuro, M.P 14. The Hon. Edwin O. Yinda, M.P 15. The Hon. Peter Kiilu, M.P 16. The Hon. Gedion Mbuvi, M.P 17. The Hon. Benjamin Jomo Washiali, M.P 18. The Hon. Evans Akula, M.P 19. The Hon. William Kabogo, M.P Co-Chairman Co-Chairman

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Committee sittings The joint Committee held a total of 31 sittings and received oral and written submissions from the following stakeholders:i) The Minister for Information and Communications; ii) The Minister for Finance; iii) The Permanent Secretary, Information and Communication; iv) The Board of Directors and Management of KBC; v) The petitioners (KBC staff); vi) Former Managing Directors of KBC; vii) Victims of sexual harassment, a witness and the accused; viii) Eng. Phillip Okundi; ix) Mr. Patrick Quarcoo, the CEO of Radio Africa Ltd.; and x) Eng. Gichina Kanyi The joint Committee also visited KBC offices and stations in Kisumu, Nyeri, Nairobi and Mombasa. Due to the expansive mandate and the large number of witnesses, the Committee could not conclude the inquiry by the deadline and was granted a further extension of two weeks by the Speaker on 18th April 2012 to enable it finalise its work and table the report in the House. SUMMARY OBSERVATIONS, FINDINGS AND CONCLUSIONS Administrative issues i) The Committee notes that the recruitment and promotion procedures of staff at KBC are questionable. ii) The Committee observes that the qualifications of the Human Resource Manager (HRM) as advertised in the news papers on 8th April 2010 required the candidate to posses an undergraduate degree, a post graduate diploma in human resource management and a Masters in Business Administration. The Committee further observes that the qualifications of the Managing Director (MD) required lower qualifications than the HRM of only an undergraduate degree in social Sciences despite the MDs position being a superior position. The Committee therefore notes the anomaly and further

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that the advertisement for the position of MD seemed to be in favour a specific candidate. iii) The Committee notes that despite the critical role played by KBC as the National broadcaster, the Corporations employees are poorly remunerated. The appointment of unqualified Radio Programmes Manager i) The Committee notes that the appointment of Mr. Walter Mongare as the Radio Programmes Manager of KBC was irregular. Whereas the job description of the radio programmes manager required the candidate to possess a degree in communications, the documents submitted indicate that Mr. Mongare holds a Diploma in Graphics (desk top publishing) from Kul Graphics and is yet to complete his degree at Kenyatta University (KU) which he has been pursuing since 1996. ii) The Committee notes that the hiring of an unqualified manager has caused discontent among KBC staff and was one of the reasons for the strike. The plight of Artistes and casual staff of KBC i) The Committee notes that despite playing an important role at KBC, the artistes and casual staff have been neglected and are treated as second class employees notwithstanding the fact that a majority of them have superior academic qualifications than permanent employees of KBC. Financial issues i) The Committee notes that KBC is insolvent a fact which the Minister for Information and Communications and the Minister for Finance concurred with and that there is need for massive injection of funding to KBC to protect it from imminent collapse. ii) The Committee notes that revenue collected at KBC is not properly documented. iii) The Committee notes that KBC has suffered from lack of financial support from the Government considering the government usually requests for live coverage of its functions yet it did not pay for the same.
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The Japanese Loan i) The Committee observes that the balance of the Japanese loan obtained for the Radio MW modernization project in 1989 stood at KSh. 22 billion and has adversely affected the Corporations financial status. The Committee further observes that due to the inability of KBC to meet its loan repayment obligations, Treasury was re-paying the loan on its behalf but expected reimbursement from KBC with interest at market rates. ii) The Committee notes that the main cause of KBCs financial problems is repayment of this loan. According to the 2009 KBC accounts, the total gross income of KBC was Kshs. 1,405,644,645.06 against the expenditure of Kshs. 3,535,016,696.71 which comprised of financial charges of Kshs. 1,943,326,391.32 as the money paid to Treasury by KBC on account of the Japanese loan. As a result, KBC made a loss of Kshs. 2,129,372,051.65. This confirms that KBC is solvent save for the Japanese loan. iii) The Committee is agreeable to the proposal that the government should encourage its agencies to place a certain percentage of their advertisements with KBC in a similar way it has compelled other government agencies to use public facilities like conference centers. Protection of the workforce i) The Committee notes that to a certain extent, there has been political interference in the management of the Corporation. This can be deduced from the exit of several MDs under unclear circumstances and from the cited cases of influence on the broadcast content. ii) The Committee notes that the KBC Act Cap 221 is outdated and should be reviewed to make it consistent with Article 34 (4) of the Constitution and to confer independence to the managers of the institution to shield them against political interference. Allegations on Flawed Procurement and Corruption i) Evidence submitted before the Committee by the management of KBC confirms that York investments Ltd., Grand photolab E.A Ltd. and Leon Insurance company pre-qualifed by KBC are indeed owned by the same individual. From the documents supplied by the Management of KBC, the
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Committee notes that the Grand Photolab and York Investments appears to have been involved in several tenders. ii) When the KBC management appeared before the Committee they disputed the above allegations and asserted that even though considerable business has been given to the three companies, at no point had the companies ever bid against each other on the same tender. iii) The Committee finds nothing unusual if companies owned by the same person have not competed on the same tender. iv) The Committee has established that a team from the Public Procurement and Oversight Authority is investigating claims of alleged malpractice in particular to establish if the procurement law has been followed.( annex 12) Conflict of Interest on part of Board Members i) The Committee notes that Broadcast Solutions International (BSI) traded with KBC in the year 2010 and 2011 and is a pre-qualified supplier for 2011-13 despite its director Mr. Stephen Areba being a Director of KBC. The Committee finds that the Chairman of the KBC Board and the MD deliberately misled the Committee with respect to the business relationship between KBC and BSI and that either the Chairman was being evasive in his evidence or he was truly not aware of the dealings at the corporation.

Misappropriation of funds from the Parliamentary Broadcasting Services i) The Committee is dissatisfied with the response by the KBC management to counter allegations that a commission of Kshs. 200,000/- is paid to one of the senior managers at KBC. The Committee further notes that there is apparent discrepancy in these commission payments considering the Parliamentary Broadcasting Unit (PBU) staff disputed ever receiving any Commissions from the pooled money despite playing a crucial role in the process. Status of KBC land i) The Committee notes that KBC has 36 parcels of land scattered in different parts of the country with an estimated market value of Ksh. 2.8 billion. The

Committee however notes that the management does not possess the title deeds to all these parcels of land. ii) The Committee further notes with concern that land had been grabbed at the Mombasa site and was the subject of a court case. SUMMARY RECOMMENDATIONS 1. That KBC should be restructured and reformed to a National Public Broadcaster fully funded by the Exchequer. The new structure of KBC should include among others, a commercial department, a technical department and an infrastructure department. 2. Considering the present state of affairs at KBC most of which have been caused by poor management and administration, the Board of Directors and the Management of KBC should take responsibility. 3. The joint Committee is concerned by the failure of the Minister for Information to implement an earlier recommendation made by the Departmental Committee on Energy, Information and Communications and adopted by the House that the KBC Board be re-constituted. The joint Committee recommends that the Minister for Information and Communications disbands and reconstitutes the Board of KBC, within thirty days. 4. All the senior managers and heads of department of KBC should be vetted by the newly constituted board to ascertain their suitability for the managerial positions. 5. The management should implement a comprehensive policy on recruitment and a scheme of service to guide employment, promotions, transfers and grading of staff. 6. KBC Board should hire a Human Resource firm to harmonize and rationalize the staff and management structure at KBC. Following this harmonization, the artistes and casual staff at KBC should be given priority during recruitment, considering their high qualifications and experience. 7. The Board should review KBCs policy on award of commissions to its staff and ensure that the permanent and pensionable members of staff do not draw any commissions whether from sales or revenue collections.
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8. The Board should conduct an audit of all KBC assets. Moreover, KBC should move with speed to obtain all the title deeds of its land with a view of safeguarding the same against land grabbers and unscrupulous individuals. 9. The Minister for Finance should take the necessary steps towards improving KBCs financial status including restructuring its balance sheet by converting KBC debt into equity. 10. The Government should increase its financial support to KBC to accelerate the process of restructuring and reforms and enable it effectively perform its role as a National public broadcaster. 11. The Government should as a matter of urgency negotiate with the Japanese government to write off the Japanese loan acquired for KBC in 1989 for the purchase of the Medium wave equipment which are obsolete. 12. The Minister for Information and Communications should review the KBC Act Cap 131 in order to re-align it with the Constitution in particular Article 34 (4), to ensure that the National public broadcaster is independent and free from political influence. ACKNOWLEDGEMENTS The Committee wishes to sincerely thank the Offices of the Speaker and the Clerk of the National Assembly for the necessary support and services extended to the Committee to execute its work. As Co-Chairpersons, we must thank Members of the Committee for their patience, sacrifice, and hard work despite their other commitments and tight schedules, in their endeavor to deliberate on this petition. We must also thank the staff of the National Assembly for their steadfast support to the Committee.

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Mr. Speaker, Sir, On behalf of the joint Committee, I now have the honour and pleasure to present the Report and Recommendations to the House. Thank You,

Signed . CO-CHAIRPERSON (HON. JAMES REGE, MP)

Signed . CO-CHAIRPERSON (HON. NICOLAS GUMBO, MP)

Date: ....

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The Report was countersigned by the following Members of the Committee:1. The Hon. (Eng.) James Rege, M.P. 2. The Hon. (Eng.) Nicolas Gumbo, M.P 3. The Hon. Clement Wambugu. M.P 4. The Hon. Maina Kamau, M.P 5. The Hon. Evans Akula, M.P 6. The Hon. Emillio Kathuri, M.P 7. The Hon. Joshua Kutuny, M.P 8. The Hon. Charles Keter, M.P 9. The Hon. David Koech, M.P 10. The Hon. Cyprian Omollo, M.P 11. The Hon. Aden Duale, M.P 12. The Hon. Prof. Philip Kaloki, M.P 13. The Hon. Aden Keynan M.P 14. The Hon. Ekwee Ethuro, M.P 15. The Hon. Edwin O. Yinda, M.P 16. The Hon. Peter Kiilu, M.P 17. The Hon. Benjamin Jomo Washali, M.P 18. The Hon. Gedion Mbuvi, M.P 19. The Hon. William Kabogo, MP - Co. Chairman - Co.Chairman

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CHAPTER ONE: INTRODUCTION AND BACKGROUND 1.0 INTRODUCTION 1.1 Public broadcasting service which includes among others radio, television and electronic media, exists in many countries. Public broadcasting is funded from diverse sources including the public, license fees, individual contributions and commercial fees. Historically in many countries, public broadcasting was the dominant form of broadcasting. However, private broadcasting now also exists in most countries including Kenya. 1.2 Transmission by Radio in Kenya started in 1927 through the East African Broadcasting Corporation (EABC) which relayed British Broadcasting Corporation (BBC) news to the colonies. The broadcast services targeted white settlers who monitored news from Britain and other parts of the world. In September 1931, an agreement was made between the Government and the Imperial and International Communication Ltd (cable and wireless Ltd.) to take over the responsibility of broadcasting for a term of 25 years. 1.3 First radio broadcasts targeting Africans began during the World War II to inform relatives of African soldiers of the happenings at the war front. The first broadcast service for Africans- African Broadcasting Services (ABS) - was created in 1953 and aired programmes in Swahili and other languages. The television service (TV) was introduced in Kenya in 1962. The Voice of Kenya (VOK) was nationalized in 1964 through an Act of Parliament. The name was changed to KBC in 1989. 1.4 KBC is established as a public broadcaster by an Act of Parliament Cap 221. The functions of KBC are among others, to provide independent and impartial broadcasting services of information, education and entertainment in English and Kiswahili or in any other languages the Corporation may decide. The aims of KBC are to inform, educate and entertain the public through radio and television services. The specific aims are to increase understanding of the government development policies and strategies and promote an effective approach to the use of radio and television as tools for National Development. 1.5 KBC currently has about eight hundred and eighty seven (887) permanent employees and about four hundred (400) artists and casuals employees. It operates a TV station and over eighteen (18) radio stations. The Managing

Director (MD) oversees the day to day running of KBC with the direction of the Board of Directors which consists of a chairman appointed by the President, the MD, the Permanent Secretary for information and Communication, the Permanent secretary for Finance and other members with specialized qualifications appointed by the Minister. 1.6 KBC has suffered many challenges including administrative challenges, political interference, poor asset management, high debts, irregular recruitment and promotions, poor working conditions and low wages which have led to a workforce that is dissatisfied. Owing to this dissatisfaction, for the first time in the history of the country, KBC employees went on strike to voice their grievances with a view of getting long term solutions. 1.7 On Thursday 1st of March 2012, two hundred and forty eight (248) KBC employees presented a petition to Parliament through the Hon. John Mbadi M.P citing interference and political influence at KBC; poor employee terms of service; low wages; and an oppressive work environment. The petitioners stated that KBC has been mismanaged leading to brain drain, loss of revenue and lethargy amongst members of staff. They prayed that Parliament investigates the concerns raised and establishes the factors that have led to the current state of affairs at KBC with a view of offering long-term solutions. The petitioners also prayed that Parliament reviews the KBC Act Cap.131 with a view of harmonizing it with the Constitution and strengthening the competitiveness of KBC. 1.8 Following the Speakers ruling on the petition, the joint Committee held sittings with the stakeholders in order to unearth the reasons behind KBCs failures and provide long term solutions. From the evidence gathered, the joint Committee concludes that the corporation lacks both policy and legal framework and must undergo major reforms to transform it into a functioning National public broadcaster that serves the aspirations of all Kenyans as envisaged by the Constitution.

CHAPTER TWO: SUBMISSIONS BY STAKEHOLDERS 2.0 INTRODUCTION The Committee received oral and written submissions as is presented here below. 2.1 MEETING WITH THE PETITIONERS (KBC STAFF) Appearing before the joint Committee on March 7th, 2012, the petitioners raised the following allegations and submitted written memoranda. 2.1.1 Administrative Issues (a) Irregular recruitment, appointments and promotions of staff at KBC They raised the following issues with regard to employment at KBC:i) That the recruitment and promotion process at KBC was skewed due to lack of a proper scheme of service. ii) Recruitments, appointments and promotions of staff at KBC do not follow the due process. There were serious allegations of favouritism and granting of sexual favours for employment and promotions. iii) The petitioners cited a specific case which occurred in November 2010 whereby all the employees were promoted to higher grades though their salaries were not increased in line with their new grades. Notwithstanding this mass upgrade, in August 2011, the Principal internal auditor, finance manager and the Assistant Editor-in-Chief were promoted one grade up (SS BE3 to SS BE2) under unclear circumstances. They also alleged that the current administration manager who previously served as the Assistant Human Resource (HR) manager (grade SS BA 1) was also promoted to Administration Manager (SS BE3) before the mass upgrade under unclear circumstances since the post was never advertised nor any candidates interviewed. He was later upgraded to grade SS BE2 after the mass promotion. iv) The Committee heard that some vacancy advertisements were tailor made to suit specific individuals. For instance, on 8th April 2010, an advertisement
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was placed in the standard newspaper for the position of the MD and another one in May for the position of the Human Resource Manager (HRM). The qualifications for the HRM required the candidate to possess a post graduate diploma in human resource management and a Masters in Business Administration (MBA) while the MD was required to posses only a degree in Social Sciences 1 . The petitioners argued that the qualifications for MD were set with a specific individual in mind. v) The petitioners stated that in July 2009, the management approved the Code of Regulations (COR) which provided for, among others, the payment of commuter allowance to all staff at the rate of 15% of their basic salary. This was implemented two years later in July 2011. However, before the implementation of this allowance for all staff, the managers were already drawing transport allowance at the rate of Ksh. 10,000.00 per month. The petitioners alleged that the provision in the COR that those already drawing transport allowances would continue earning it at the rate of 15% of their basic salary or Kshs. 10,000.00 which ever was higher was in favour of the managers and was done with full knowledge of the fact that 15% of the basic salary for managers was higher than the Ksh.10, 000 they were already earning. (b) The appointment of an unqualified Radio Programmes Manager i) The petitioners alleged that the Radio Programmes Manager Mr. Walter Mongare was irregularly recruited in April 2010 despite his lack of the relevant qualifications and that his subordinates had better qualifications than him. They referred to his Curriculum Vitae 2 which showed that Mr. Mongare holds a Diploma in Graphics (desk top publishing) from Kul Graphics Institute and is yet to complete his degree at Kenyatta University (KU) which he has been pursuing since 1996. The petitioners stated that as a result of his inadequate qualifications, Mr. Mongare is not fit to provide leadership and manage the department.

Annex2(a)&(b) Annex3

(c) The Plight of Artistes and Casual Staff i) The petitioners defined the term artistes as provided for in the KBC Code of Regulations of 2009, as a public performer or entertainer whose services are employed by the Corporation. The COR further states that the terms of the artistes shall be spelt out in the artistes policy. The terms of engagement for the casual employees on the other hand stated that the casual workers were not to be engaged for a continuous period exceeding one month and were not entitled to any leave, gratuity, medical cover and other benefits. ii) The petitioners stated that the artistes were discriminated against yet KBC as a state corporation was expected to treat all employees equally. The issues they raised with regard to KBC artistes include:Employment The petitioners alleged that:i) Most of the artistes had served the corporation as temporary employees for more than the six month stipulated period with some even working for up to seven years. This, in their opinion contravenes the Constitution and the labour laws. ii) The artistes were grossly underpaid despite being highly qualified. Moreover, the pay day was inconsistent and varied from either the 5th, 10th or 18th depending on the signatories preference. They further alleged that transition to permanent employment was not carried out in a transparent manner but was through nepotism and sexual favors. iii) There was lack of a standard policy on artistes. For instance, in some departments, artistes were assigned contracts and appraised but this was not the case in all departments. Further, some artistes such as those in the IT and marketing departments earned KSh. 30,000 and were entitled to medical and house allowances yet others with the same credentials earned as little as KSh. 17,000.

Discrimination i) The petitioners alleged that the artistes were often overworked by assigning them mostly night shift and weekend duties despite having permanent employees who were deemed to be more qualified. However, they were discriminated against in assignments that generate allowances and commissions. Such assignments were always assigned to permanent employees with the excuse that artistes were not permanently employed and were not entitled to risk allowance. This discrimination extends to training opportunities and award of scholarships. Inhumane working conditions i) The petitioners alleged that the artistes were not entitled to either annual leave or off days thus subjecting them to long working hours without any break or compensation. They further alleged that female artistes were not entitled to maternity leave and were only given two weeks off on humanitarian grounds. They felt that this was discrimination on gender basis and an outright infringement of basic human rights and the labour laws. ii) They further stated that the artistes did not have medical benefits and risk allowance and presented cases where some had incurred injuries in their line of duty but were abandoned at the accident sites or hospital to cater for the ensuing expenses despite their low wages. The petitioners recounted specific cases of a Mr. Tony Juma, a camera man who was involved in the Eldoret air crash in May 2009; Ms. Rebecca Masinde, an editor who was stabbed on her way home from work in 2011; and Maryanne Wanjiku a producer who was involved in a car accident on her way from work. Artistes working on night shift at the station or at other locations were denied transport and meals. Corruption i) It was alleged that KBC deducts Pay As You Earn (PAYE) from the artistes but does not remit the same to Kenya Revenue Authority (KRA). The petitioners based this allegation on the fact that the artistes are asked to apply for a new KRA pin number once they get permanently employed.

(d) Staff Victimization The petitioners claimed that the deputy procurement manager was transferred from Nairobi to Mombasa under unclear circumstances for being a whistle blower. They claimed his transfer was because he was perceived to be a stumbling block to corruption and procurement irregularities at the KBC headquarters. The case of Elyna Wanyika Sifuna i) Ms Elyna Sifuna who had been taken to court on allegations of sending abusive text messages to former MD David Waweru and the current MD Mr. Waithaka Waihenya, was cleared of these allegations after the court found no evidence indicating she was the sender of the text messages. She later filed a case with the industrial court and was awarded damages and an order made to the corporation to reinstate her. The corporation has however refused to lift her suspension. According to the petitioners, the company secretary belatedly filed an appeal against the ruling. ii) Further, it was stated that the corporation enlisted the legal services of Kinyua Muriithi and Company Advocates whose legal fee is catered for by the corporation yet Ms. Sifuna had sued Mr. Waihenya for defamation in his personal capacity and not as the corporations MD. The case of Sylvester Legewa Mr. Sylvester Legewa, who had served for a long period of time as a contracted ICT officer, was unprocedurally sacked from KBC after the management failed to sign the document authorizing his pay. Mr. Legewa was neither given a termination letter nor notice. (e) Sexual Harassment The Committee met with one of the alleged victims of sexual harassment who informed them that the other victims were reluctant to appear before the Committee for fear of victimization. The Committee heard that:i) She joined KBC in 2007 as an intern just before graduating from university.
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ii) She later worked for one and a half years as a casual employee without pay. iii) She transferred from reporting news on T.V to a producer at Metro FM where she worked under the accused. The accused sent her several suggestive messages and at one time offered to take her on an exotic trip but she declined. He also brought her gifts on his return from one of his trips which she accepted. iv) The accused however continually frustrated her because of her unwillingness to grant him sexual favors by refusing to grant her leave or sick offs (she got her first leave after 4 years); burdening her with excess work; and addressing her in vulgar language. v) She complained to her superior who had earlier warned her to be wary of the accused- she however never pursued the matter. vi) The victim felt that she was discriminated against considering her salary was only Ksh. 27,000 while her colleagues at Venus FM were paid a salary of Ksh. 70, 000. The victim had strong suspicions that this discrepancy was as a result of her unwillingness to yield in to the demands of the accused, though she did not rule out any other reasons. vii) She then stated that the studios at KBC were not safe for female employees particularly at night considering the security personnel were located far from the studios. 2.1.2 Allegations of flawed procurement processes and malpractices The petitioners raised allegations with regard to KBCs procurement process. The Board of Management was accused of corruption, procurement irregularities and wastage of public funds as detailed here below. (a) Irregular engagement of service providers i) The petitioners argued that the approval of a request by the Kenya Auto Electrical Ltd to the Procurement Manager for extension of the closing date for tenders in its letter dated 5th March 2012 (REF: KAEL/KBC/12/029) when KBC staff were on strike was irregular and should be probed further. The

company is however not prequalified to supply equipment or any material to KBC. ii) They stated that the MD had signed a contract with One Way Cleaning Services Ltd which was not pre-qualified for offering cleaning services to KBC. The petitioners indicated that the details of the contract were scanty but requested the Committee to further follow up on the transactions through payments to the company vide Cheque No. 008744. They went further to request that the supplies and marketing inspector, a Mr. Samson Ondieki ought to be questioned with regard to these suspect transactions. iii) They further alleged that tenders were being awarded at inflated costs for some services that could be undertaken internally by the employees. For instance, Turnkey services had been paid huge amounts of money for a TV programme that could have been produced by highly qualified personnel at KBC. iv) Despite KBC undertaking tenders for supply and installation, KBC Staff were sometimes directed to implement the tasks on behalf of the bidder despite the tender documents indicating clearly what was expected of the bidder. v) The petitioners alleged that KBC has engaged law firms without tendering yet it has a fully fledged legal department. (b) Tenders awarded The petitioners alleged that a majority of the lucrative Tenders at KBC are awarded in favour of five companies associated to one individual. The tenders awarded to these companies according to the petitioners include:i. A tender for TV virtual set awarded to Grand photolab which the petitioners alleged had been varied from KSh 16m to about KSh. 50m without competitive bidding. ii. A tender for FM Transmitters (Kuria, Webuye, Kisumu and Kisii) which was separated into two tenders, one for transmitters and one for antennas and awarded to Grand Photolab and York investments for about KShs. 50m.

iii. FM Transmitters for Vernacular stations (Luo, Luhya, Kisii, Kalenjin etc.) were awarded to the same two firms without competitive tendering. iv. A tender for analogue TV Transmitters was awarded to the same firms at a cost of about KSh.100m. v. A tender for digital TV transmitters was awarded to Central Works Company at a cost of about KSh. 280m. A down payment of KShs. 88m was paid out to the company during the KBC staff strike. The petitioners alleged that the evaluation for most of the above tenders was done with the assistance of two University of Nairobi (UoN) lecturers, Prof M.K. Wamangoli and Dr. Elijah Mwangi, yet KBC has the capacity to carry out the evaluation. They further alleged that the team was appointed directly and unprocedurally by the tender committee. According to the petitioners, the source of specifications and evaluation criteria are suspicious in view of the above. (c) Inspection and Acceptance Committee i) The petitioners stated that they found it peculiar that, a Mr. Fred Akoko, was not involved in the Inspection and Acceptance of equipments from suppliers despite a memo from the CEO appointing him to the membership of the Inspection and Acceptance Committee dated 28th July, 2011 (REF: KBC/MD/12/6/C). (d) Conflict of Interest on the part of Board Members i) The petitioners claimed that Broadcast Solutions International Limited (BSI), a company owned by a board member, Mr. Steve Areba, was pre-qualified to supply equipment for the years 2011-2013. They stated that BSI was hosting Pan Africa Media Network, the second licensed multiplex company at KBCs Gatimu site in Limuru despite the company expressing interest in being hosted by KBC at the Limuru Transmission. The petitioners alleged the existence of a letter with regard to this request. ii) The petitioners alleged that Hope FM withdrew their transmission equipment from KBC Limuru Transmitter station to the BSI site in Gatimu between 4th and 6th August 2011 as a result of verbal instructions from the Assistant Manager
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Technical Services (AMTS) Mr. Tom Buluku to the Engineer-In-Charge Limuru Transmitter. iii) It was alleged that another Board member, Mr. Ben Gituku also sits on the board of the Radio Africa Group which was a clear case of conflict of interest. The petitioners insinuated that this could have had a bearing on the controversial deal between KBC and Radio Africa over the exclusive FIFA 2010 World Cup rights that was currently a court case (former MD David Waweru and former Company Secretary Hezekiah Oira were sacked from the corporation and arraigned in court over the matter). (e) Commission payment i) The petitioners claimed that commission payment from the proceeds of live broadcast of Parliamentary proceedings was irregularly done contrary to claims by the acting finance manager that the Corporation has been paying the Parliamentary Broadcasting Unit (PBU) staff monthly allowances. ii) The petitioners requested the Committee to investigate the matter and establish the beneficiaries of these allowances since 2008. They further made a plea to the Committee to compel KBC to immediately pay all the PBU staff the requisite allowances backdated to the commencement of the parliamentary live proceedings in 2008.

(f) Suspicious increase in wealth of employees i) The petitioners alleged that the social status of some of the managers had radically changed in the short period they had been in the Department. They requested the Committee to probe the source of their wealth and specifically how the had acquired vehicles and property. They cautioned that the excuse of loans could be used to camouflage corrupt deals amongst some managers. The petitioners were concerned that the Minister for Information and Communications had not invited the Efficiency Monitoring Unit (EMU) and/or Ethics and Anti-corruption Commission (EACC) to investigate these claims which

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they had presented to him on 8th December 2011 in a memorandum signed by 315 staff. They requested the Committee to recommend the suspension of any corrupt manager and freeze their bank accounts until the investigations were completed. 2.1.3 Poor organizational Structure and financial management The Committee heard that; i) KBC is heavily indebted; ii) There is a deliberate attempt by the Ministry to cause the collapse of KBC since the PS openly favours ICT departments. iii) Postal Corporation of Kenya (PCK) and the Kenya Institute of Mass Communication (KIMC) were some of the organizations being marginalized by the Ministry. (a) Mismanagement i) The petitioners alleged that there was mismanagement at the corporation through creation of units that added no value to the core business of KBC and were headed by personnel earning huge salaries yet their roles were not clearly defined. For instance, in the marketing and radio department. ii) They further pointed out the merger of the ICT and technical departments which in their opinion was an amorphous unit that was headed by an ICT person with no requisite background in broadcast engineering. iii) The petitioners pointed out that the workshop at KBC that was intended for preventive maintenance, repair and testing of KBC transmission and production equipment and which was to be equipped with standard repair tools, repair kits and instruments to undertake the said works under international standards had been abandoned and neglected and only carried out piecemeal works.

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iv) They were dismayed at the closure of Metro FM which at the time of closure had the highest listenership of all the KBC radio stations. (b) The ICT and Technical Department i) Majority of the ICT officers had no job descriptions. This had left them vulnerable to harassment and malpractice especially during appraisal target setting. The petitioners alleged that only selected individuals have job descriptions. ii) There is a glaring lack of ICT and technical maintenance tools in key operation areas coupled with lack of well equipped workshops for equipment testing and maintenance. The technical challenges include:Lack of sufficient hardware such as computer, printers and scanners etc; Inadequate workstations for all staff members; Lack of licensed Software; and Lack of proper server rooms with efficient backups 2.1.4 Changing Technologies The petitioners alleged that KBC as the implementing agency of the Task force on digital migration had not provided leadership nor created capacity for a comprehensive migration plan. They accused the corporation of abdicating its responsibility of migration to foreign companies in total disregard of its national mandate. They cited some glaring anomalies that created confusion as:i) Lack of direction and impetus in the formation of a Signal distribution company. ii) Purchase of analogue TV transmitters despite the stipulated analogue switch off date slated for 30th of June 2012. The corporation also awarded tenders to a local company to supply digital TV transmitters that were untested and had no local or international reference for proof of quality. 2.1.5 Some other general issues raised by the petitioners include:i) The petitioners accused the PS and Minister of micro managing KBC and supporting the recruitment of persons who lacked in suitable qualifications

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including both education and experience for the positions assigned to them. ii) KBC had more managers than non-manager employees and that the intention was to suppress the employees from joining the Union. iii) Most staff at KBC had stagnated in one position considering promotion was used as a tool of reward for sycophancy by the management. iv) The management was intolerant to staff which had consequently led to brain drain at KBC. 2.1.6 The petitioners drew the following conclusions and recommendations:i) That there are gross malpractices at KBC which call for immediate action. There is also an urgent need to prevent any obstacles to investigation including but not limited to the stepping aside of officers implicated in the dubious deals and suspension of all contracts until procurement processes are investigated. ii) There should be strict adherence to the KBC recruitment policy and establishment of procedures that take into consideration gender mainstreaming. iii) There is need for appointment of radio and television experts to the KBC Board of Directors to effectively assess candidates for radio and television jobs. The staff alleged that the Radio department had fallen victim to incompetent managers because of failure to have board members who are well versed on broadcasting matters. iv) KBC should update its scheme of service in order to target the right candidates with specific qualifications. v) The artistes and casual employees should be employed on permanent and pensionable terms to fill the current vacancies based on their credentials, years of service and the roles played within the corporation. The artistes and casual staff should be better paid and be entitled to medical and house allowances.

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vi) The petitioners called for investigations to establish the justification for hiring a private company - Tysons Limited and Interlink to manage the KBC Housing scheme yet KBC was able to manage the scheme by recovering the rent from the staff through the pay roll. 2.2 MEETING WITH THE KBC BOARD OF DIRECTORS AND MANAGEMENT The joint Committee met with the KBC Board of directors and management on Thursday March 8, 2012. During the meeting, they responded to the following issues that had been earlier raised by the petitioners:2.2.1 REASONS THAT LED TO THE STRIKE (i) The management admitted that they were aware that the KBC staff faced several problems including low salaries, stagnation and poor working conditions. They believed that these were the reasons that led to the strike considering they had plagued the organization for quite some time.

(ii) They however stated that though they were greatly concerned with these challenges, the corporation was financially strained and was therefore not in a position to pay its staff well, purchase equipments and cater for other operational expenses. The management strongly believed that financial challenges were the main cause of these problems and an increase in financial allocations would greatly contribute to addressing these problems. (iii) The management further stated that they appreciated the staffs concerns since they were genuine but they were not agreeable to the channel the staff used to raise their concerns.

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2.2.2 ADMINISTRATIVE ISSUES a) Promotions and appointments of staff With respect to KBCs recruitment and promotion policy, the Committee was informed that:i) In 2007, KBC commissioned the Federation of Kenya Employers (FKE) to carry out an organization review and job evaluation exercise whose findings are contained in a report dated November, 2007 3 which recommended amongst others, the re-alignment of the staff complement of KBC.

ii) The staff misunderstood the recommendations contained in the report to mean that their remuneration would be increased. They however stated that the board was working on a system to improve the salaries of the staff. iii) There has never been mass promotion or recruitment of staff as alluded to by the petitioners. iv) The management appreciated that KBC has a large workforce and there was a need for staff harmonization. v) With respect to the specific claims by Mr. Milton Nyakundi, the MD stated that Mr. Nyakundi had personally submitted his resignation letter to him. The MD informed the Committee that he tried to persuade Mr. Nyakundi against resigning but he was adamant on his decision and the MD therefore wished him well.

b) The appointment of Mr. Walter Mongare as Radio Programmes Manager. The management informed the Committee that the Radio Programmes Manager Mr. Walter Mongare was on a three (3) year contract and not on

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permanent and pensionable terms as alleged. Mr. Mongare was employed on a talent basis based on a decision by the Board to source and employ a person based on his/her talent in order to improve the radio section. The management concurred that Mr. Mongare only held a Diploma in printing but they were of the opinion that he was qualified considering he had seven (7) years experience. They further stated that since his appointment, the radio department had improved. The Management tabled the job description 4 of the Radio Programmes manager.

c) Specific action undertaken by the Management to improve staff welfare The KBC Board and management stated that they had undertaken several steps to improve the welfare of its staff. Most notable of which were:(i) Introducing staff commuter allowance in 2010.

(ii) Increasing staff remuneration by 21% through a 9% pay raise in February 2012 and a further increment of 12% which was backdated to July 2011. (iii) Commencing the process of procuring medical cover for the employees.

(iv)A car loan scheme was introduced and efforts are underway to introduce a mortgage scheme.

(v) While appreciating the deplorable conditions of studios and offices at KBC, the management assured the Committee that efforts were underway to refurbish the newsrooms.

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d) The plight of Artistes and Casual staff. The Committee heard that the Corporation hires artistes as provided for in the KBC Act Cap 221. The management admitted that they were dependent on the artistes who were highly qualified and even more skilled than the permanent staff. The management drafted a policy on artistes and casual staff in 2011 and thereafter issued a circular for recruitment of casual staff who had served for a long period of time. They were aware that some of the casual staff had served for over eight (8) years and they had therefore started the process of filing vacant positions by hiring causal employees. The management informed the Committee that on 7th March 2012, they had commenced the process of issuing all the casuals with a three (3) month contract as an interim measure before regularizing the anomaly. They further stated that they had commissioned an audit of all KBC staff in order to establish the number of staff and the optimum number to be maintained. The MD assured the Committee that KBC will give priority to the recruitment of casual employees depending on availability of funds. He also gave an assurance that he would investigate the claims leveled by the petitioners that the management compelled the casual staff to acquire new PIN numbers during extension of their contracts in an effort to avoid paying tax and employment law. The MD made a commitment to further investigate the claims made by the petitioners that the employees injured in the line of duty were abandoned and in particular the case of the cameraman who was left unattended by a manager after the plane crash. e) Allegations of sexual harassment The Management informed the Committee that sexual harassment was listed as an offence under the KBC Code of Regulation. They however claimed that they had not received any official reports of sexual harassment but gave an undertaking to take serious action against any perpetrators.
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2.2.3

PROCUREMENT ISSUES

(a) The 2010 FIFA World Cup rights saga The Chairman informed the Committee that:(i) KBC was embroiled in a court case with Radio Africa Ltd. over the 2010 FIFA World Cup rights. (ii) The Board was aware of the allegation that one of the KBC directors, Mr. Ben Gituku, also sits on the Board of Radio Africa Group. Following these allegations, the Board held a meeting to establish the truth and confirmed the allegations were not true.

(b) Conflict of interests by some Directors of KBC by transacting business with KBC i) The Chairman of the Board of KBC informed the Committee that to his knowledge, none of the Directors currently transacted any business with KBC. He stated that at one time, one of the Directors Mr. Stephen Areba had requested to transact business with KBC but his request had been turned down. He however acknowledged being aware that Mr. Areba had previously through his company, Broadcast Solutions International Ltd (BSI) held a contract with KBC but this was no longer the case. ii) The MD however gave a different account by confirming that indeed there was an existing contract between KBC and BSL Ltd for co-sighting but the contract had been drafted long before Mr. Areba had joined the Board.

iii) The Committee noted the discrepancy between the evidence of the MD and Chairman of the Board and requested to be availed with additional information 5 .

(c) Tendering and Pre-Qualification of Companies by KBC

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i) The Committee heard that none of the companies pre-qualified by KBC were owned by the same individual or had competed against each other on the same tender. The management however stated that they were aware of a supplier whose three (3) companies were awarded tenders but they were categorical that these companies did not compete on the same tender.

ii) They stated that the said supplier had won two (2) tenders through his three companies, Grand Photolab E.A Ltd; York Investments Ltd; and Leon Insurance Company. They further explained that York Investments Ltd had won two (2) tenders; Grand Photolab E.A Ltd had won one (1) and Leon Insurance Company had won two (2) over a period of two (2) years.

iii) With respect to Kenya Auto Electrical, the management clarified that the company had not been approved as a supplier considering the tender in question was still in process. They denied the allegation that there were alterations of tender documents in favor of Kenya Auto Electrical. (d) Misappropriation of funds from the Parliamentary Broadcasting Services The Committee heard that KBC receives Kshs. 15 million every month from the Kenya National Assembly (KNA) for live coverage of Parliamentary proceedings. The management stated that the funds were used to purchase new cameras.

With respect to the allegation that a commission of Kshs. 200,000/- is paid to one of the senior managers at KBC, the management responded by stating that:-

i) KBC had a policy on payment of commissions for revenue collection as per the set targets. Considering therefore that Parliament was one of the sources of revenue, a commission was paid from these proceeds to the KBC employee in charge of the Parliamentary account.

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ii) The commission was pooled and distributed to all the staff involved with the payment rates depending on the employees job grade. The management was adamant that it was impossible for only one individual to receive the funds. The Committee noted the contradiction with regard to the payment of these commissions and requested the MD to avail a report indicating how KBC utilizes funds from the KNA for the live Parliamentary broadcasts 6 . (e) Drastic change in social status of allegedly corrupt KBC staff With regard to this issue, the MD undertook to avail to the Committee copies of declaration of income, assets and liabilities for the last three years of some of the managers who had been mentioned as individuals whose social status had drastically changed within a short period of time 7 .

2.2.4 ORGANIZATIONAL ISSUES (a) The closure of Metro FM and establishment of Venus FM On this particular concern, the Committee was informed that:i) Metro FM was one of KBCs commercial radio stations with the specialization of reggae music but its revenues had begun dropping despite the fact that it had a huge listenership. The management explained that the reduction in revenues was as a result of the withdrawal of advertisers because they didnt want to be associated with the Rastafarian lifestyle.

ii) Following this situation, the board considered the proposal of changing and re-engineering the station. The managements proposal of establishing a

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women only station was approved by the board and therefore, Venus FM was launched. iii) Venus FM uses the same frequency previously used by Metro FM and though the station was already on-air, it had not been officially launched. iv) The head of the station had been appointed on an acting capacity. The management stated that they had re-assigned some members of staff of Metro FM to other departments and that nobody was sacked or victimized. v) The current revenues from Venus FM were KShs. 4 million per month but this amount was projected to rise to KShs 15 million per month as was the case with Radio Taifa.

vi) The management denied the allegation that the marketing department deliberately led to the closure of Metro FM by failing to raise revenue.

(b) Illegal use of KBC frequencies by other stations The Committee heard that there was an agreement with Ghetto Radio for usage of the KBC frequency. Under this agreement, KBC was to receive some payments but the agreement has since become void as the station is currently leasing the frequency from KBC at Kshs. 0.5 million per month.

The Management denied knowledge of an agreement between Hope FM and KBC for the former to utilize KBCs frequencies. (c) Illegal disposal of KBC land The management was not aware of any KBC land disposal since 2005. 2.2.5 TECHNICAL ISSUES The Committee heard that:
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i) KBC has suffered from lack of financial support from the Government and that the government frequently requested for live coverage of its functions without pay for the same or even air government advertisements with KBC.

ii) The Management of KBC was of the view that since KBC performs the role of a public broadcaster, which is not profitable, the government should issue a circular compelling all government agencies, to place 20% of their advisements with KBC in a similar way the government has compelled government agencies to use public facilities like conference centers.

iii) KBC has not yet concluded the merger between the ICT and the technical services and that the same was still being deliberated upon. The rationale behind the plan was the conflict between the ICT department and the technical Services department and there was therefore a need to minimize this conflict. The issues are still being handled by the Board. 2.3 EVIDENCE BY MINISTER FOR INFORMATION AND COMMUNICATIONS The Minister for Information and Communications the Hon. Samuel Poghishio, EGH, M.P appeared before the Committee on Tuesday March 13th 2012. The Minister was accompanied by the PS in the Ministry, Dr. Bitange Ndemo, CBS. The Minister informed the Committee that when he took office as Minister, he realized that KBC was facing several challenges and he has since assuming office, been working towards addressing these challenges. i) According to the Minister, it was unclear whether the staff and artistes withdrew their services or they had gone on strike. In his opinion, the artistes had left KBC because they didnt want to work there anymore. He was however of the opinion that the strike was caused by a failure by the management to pay the staff an allowance. ii) The Minister stated that five (5) years ago he wrote a cabinet memo requesting the Treasury to fund KBC. The cabinet memo was however not approved. He explained that a Cabinet memo cannot be discussed at the cabinet if it has any financial implications until the Minister for Finance counter signs it.

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iii) The Minister acknowledged that indeed KBC had a huge debt which emanated from a loan acquired to purchase medium wave equipment in 1989. He expressed his frustration that this equipment consumed high power costs leading to regular disconnections by KPLC due to failure by KBC to pay for the high power bills. He however reiterated that power expenditure had significantly dropped due to the piecemeal migration to FM frequency and it was projected to eventually drop from KSh. 30 Million to KSh. 3 million. iv) With regard to digital migration, he informed the Committee that Signate was currently managing the analogue to digital migration process and that Nairobi, Naivasha and Eastern were already complete. It was further expected that Kisumu and Nakuru would be complete by the following month. v) It was unfortunate that the labour and salary issues had not been well addressed. He stated that the corporations employees continued to earn the same salaries since VOK changed to KBC and at some point earned even less than public service staff rates. vi) In his opinion, KBC has a large number of employees as compared to those in the private media houses. Despite an earlier retrenchment exercise, approximately 1400 employees still remained in the employment of the corporation consuming a huge wage bill. This informed the Boards decision to pay a few management staff contrary to the agreement that the mass promotion in 2011 should not have any financial implication. The selective payment resulted to a complaint by the staff and was the main trigger of the strike. This has since been resolved through the back to work formula and the PS is following up on the same with Treasury. vii) The Minister assured the Committee that he has called for a thorough audit process to investigate alleged corruption in the procurement process at KBC. The Minister undertook to further investigate allegations of conflict of interest and corruption at the board level and deal with it accordingly. viii) The Minister concurred that it was through the strike that the Ministry came to the realization that KBC was being run by the artistes. He was agreeable to the petitioners claim that it was illegal for the artistes to work for a long period of time on temporary contracts. He however stated that the process

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to correct this illegality had begun through permanent employment of artistes who were highly qualified and thus very resourceful to KBC. ix) The Minister stated that the COR which was accepted by the board had financial implications of about Ksh. 490 million. He recommended increased funding from Treasury and made a plea to the Committee to offer their support in lobbying for increased funding to enable KBC meet its broadcast obligations. x) The Minister was categorical that the strike was illegal and that the government had permitted the staff to join the union which they had disowned. This forced the Central Organization of Trade Unions (COTU) to withdraw their services and classify the strike as illegal although the union fee had already been deducted. xi) The Minister made the commitment to restructure the Corporations board in order to recruit new board members with relevant qualifications and experience. The Committee directed the Minister to present to Parliament the list of the reconstituted board and their CVs. xii) The Minister and the PS stated they had no knowledge of the alleged sexual harassment at KBC. He found it unfortunate that these claims of sexual harassment were never raised during his meeting with the KBC Staff. He recommended that after investigations the offenders should be sacked and punished. xiii) The PS denied any relations to Mr. Walter Mongare and involvement in his recruitment as the Radio Programmes Manager. As far as the PS was aware, Mr. Nyambane was hired after the former MD had reviewed the ratings of KBC and recommended hiring of a competitive presenter such as was the case at Classic FM.

Following the meeting, the Committee noted that:i) Some of the artistes were more qualified than permanent KBC employees who were not technologically compliant and there was therefore need to recruit the artisans as permanent staff.

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ii) The purchase of the obsolete medium wave technology was irregular and must be legally addressed. It was therefore recommended that in future, any modernization equipment purchased by KBC should be internationally accredited. iii) Treasury should allocate a certain amount of money to KBC to enable it run as a National public broadcaster. iv) KBC should be renamed and an optimum number of professional staff should be established. 2.4 EVIDENCE BY FORMER MANAGING DIRECTORS OF KBC

Three former MDs of KBC appeared separately before the joint Committee on Tuesday March 20, 2012. 2.4.1 Mr. Claxton Munywoki Mr. Munywoki informed the Committee that he was the MD for Tana and Athi River Development Corporation (TARDA) before transferring to KBC as the deputy MD from January 2000 to July 2001. He served as MD for 8 months from July 2002 to April 2003 before being suspended pending investigations in a manner he deemed to be unprofessional. The former MD outlined the following as the main problems facing the corporation according to his perspective as a former MD. i) KBC finances Mr. Munywoki stated that the main revenue of KBC was drawn from radio and TV licenses and a few commercials. He reiterated that the cancellation of the T.V and radio levies adversely affected the corporations revenues. He further informed the Committee that the KSh. 8billion Japanese loan for the MW equipment received in 1987, had increased to Ksh. 23b thus heavily increasing the corporations debt. The former MD stated that KBC had revenue of about 1.2billion but an expenditure of Ksh. 1.9 billion thus they corporation perpetually operated on a deficit. ii) Bloated workforce -The Corporation has a bloated workforce which has continued to increase due to myriad reasons including political pressure and influence on management to employ more staff. The former MD stated that
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there were 1200 employees, 800 of them being permanent leading to a huge wage bill of about Ksh. 850million. iii) The equipment at KBC was obsolete including the Medium Wave (MW) equipment procured from Japan. He proposed the acquisition of new UHF transmission equipment. iv) Negative perception- Mr. Munywoki cited the negative perception of KBC as a government mouthpiece hence leading to advertisers failure to air their advertisements through the Corporation. In addition, the public also give little listenership to the station because they perceived the stations news to be skewed and biased towards government. v) Interference- He recounted instances whereby instructions were issued to the management to censor some bulletins. vi) KBC Act- An outdated and restrictive KBC Act. Mr. Munywoki proposed the following solutions to the challenges raised. That:i) In order to revive KBCs financial status, the government should write off the Japanese debt and replace the obsolete equipment. ii) Experts should be engaged in order to comprehensively restructure KBC so as to reduce the bloated workforce and huge wage bill as was the case was with Post-Bank. Following this restructuring, the government should upgrade the Corporations status from grade D to B considering its important role of a national broadcaster. iii) Modern equipment should be procured so as to increase efficiency and reduce the huge power costs which currently add up to about Ksh. 200 million monthly. iv) The government should refrain from interference in the operations of the corporation in order to improve its image. He reiterated that the recruitment of both senior and junior positions should be strictly based on merit and not political influence. v) The KBC Act should be repealed.
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2.4.2 Mr. David Waweru Mr. David Waweru was the KBC MD from August 2006 to 2010 when he was sacked following the controversial 2010 world cup FIFA rights award. i) Mr. Waweru informed the Committee that during his tenure, a policy on recruitment, appointment and promotion was in place. This was rarely adhered to due to political interference in the management of the corporation. He cited influence in simple procedures such as transfers and promotions because some employees had political godfathers. ii) According to Mr. Waweru, employment of casuals at KBC was done on demand basis by the personnel manager with the approval of the board. This however left loopholes for abuse. iii) Mr. Waweru stated that there were no official reports of sexual harassment but it was widely believed that such cases were likely to occur in the studios at night. The personnel manager countered the possibility of the occurrence of this vice by taking the employees for discussions on morals and discipline from time to time. iv) The tendering and receipt committee was intact during his tenure and there were no cases of misappropriation of funds or corruption in the tendering and procurement processes. He however clarified that during his tenure, a board member by the name Mr. Ben Gituku was also a distributor of Radio Africas Star newspaper. v) He admitted that there was some political pressure on the management but it was dependent upon the management and the board to succumb to such pressure. vi)Mr. Waweru stated that the sales commission structure at KBC was approved by the MD and that during his tenure, he ensured that the structure was analyzed by the internal audit team before he signed it. As regards to the payment done by Parliament to the corporation, he stated that an Eng. Gichina Kanyi was best placed to provide details.

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vii) He was of the opinion that metro FM was a youth station but was neither a profit making nor a loss making station. According to him, it was a good station that should not have been closed. viii) With regards to the FIFA 2010 World Cup rights which was currently in court and had caused his sacking together with the then corporation secretary, Mr. Waweru explained that the terms of the agreement between KBC and Radio Africa Ltd. were exclusive to TV rights and KBC was therefore at liberty to sell the audio rights to other stations. In line with this, the corporation sold radio rights to Royal Media services (RMS) and Milele FM radio. Mr. Waweru further affirmed that the corporation did not receive funding of KSh. 70 million from the Government as alleged to purchase the FIFA rights. ix) Mr. Waweru claimed that he had made several reforms during his tenure as MD including;Retrenchment of the bloated staff 6 months into his employment. He also introduced performance contracts in order to establish a lean and qualified workforce. Refusing to misuse the frequencies of the station for political expediency by the government. This was the case especially during the 2007 elections in which he categorically refused the misuse of the corporation frequencies by PNU for political gain. He instituted cost cutting measures in the operations for instance he reduced transport costs by 30%. He created the profit making and popular radio stations e.g. Coro FM and Pwani FM. With regard to the MW equipment loaned from Japan, he prepared a dossier for cancellation of the Japan debt and handed it over to the President to present it during his official visit to Japan. Mr. Waweru outlined the problems facing KBC as follows;-

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Huge debts owed to KPLC and Telkom Kenya. It was a common occurrence for power and telephone connections to be arbitrarily cut off thus affecting the corporations operations. The KSh. 20 billion debt owed for the MW equipment which KBC was remitting to Treasury in order to offset the loan, heavily affected the corporations financial status. The bloated workforce which led to a complex staff structure. Retrenching non-performing staff was difficult (due to many factors such as lack of funds) hence the management was forced to hire new staff to execute the duties of the non-performing staff. Lack of funding from the government notwithstanding the fact it was a State Corporation. Use of outdated technology. The divergent backgrounds and interests of the board members that were sometimes in conflict with the corporations interests. He proposed the following solutions to these problems:KBC should commence the purchase and utilization of FM transmitters and migrate from analogue to digital as soon as possible. KBC management should comprise of qualified and competent personnel. The Board should equally be composed of technical and qualified people such as mechanical engineers, broadcast engineers and media experts etc. whose input would be of value to the company. 2.4.3 A witness appearing before the joint Committee in camera informed the Committee that:i) The State Corporation suffered from an identity crisis since it previously enjoyed a monopoly as the sole broadcaster before the entrants of other private media houses. Some of KBCs stations were in place for public good such as the Rendille FM which had a low listenership but aired programmes on specific topics that were informative to the Rendille.

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ii) KBC is crippled by financial challenges which are mainly caused by the governments failure to fund the corporation therefore leading to the inability to manage the costs. Attempts by the management to get more funds were unsuccessful. iii) KBC had a bloated and frustrated workforce that was trained in the monopolistic era. The personnel had a lethargic attitude since they had no motivation to perform well. iv) KBC did not have a single unique proposition to offer. Its previous unique proposition of being a monopoly, offering vernacular radio programmes and having a wide reach in the rural and remote areas of the country had all been challenged and taken over by private media stations. According to a study done by Synovate, Citizen had 88%; KTN had 55%; NTV had 51%; and KBC had 45% geographical reach. With regards to the audience share, Citizen had 52%; KTN had 14%; NTV had 12%; and KBC had 11%. v) Lack of political will to solve the problems at KBC compounded the corporations problems further. He further added that the current model/structure of KBC was one of the major causes of its problems and not the management as was widely believed. vi) He has never witnessed a situation where board members transacted business with the corporation. vii) He has never received any official complaint of sexual harassment. viii) He agreed that the Medium Wave equipment procured from Japan was indeed obsolete and the government should approach the Japanese government for the cancellation of the loan. Further, the management should procure new and modern equipments to improve efficiency. ix) He informed the Committee that credit at KBC was authorised by the management and that the corporation had accumulated a huge list of debtors because it lacked good tracking systems and poor management of clients payments. x) He recommended an audit of the human resource to streamline the bloated workforce.
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xi) The witness proposed that KBC had to seek for a unique proposition to offer the market in order for it to survive. He recommended borrowing from the British Broadcasting Corporation (BBC) model which is fully funded by government and professionally managed. He further proposed that KBC should focus more on its public service mandate as opposed to the commercial venture. 2.5 EVIDENCE BY THE MINISTER FOR FINANCE The Minister for Finance, Hon. Robinson Githae, EGH, MP appeared before the joint Committee on Tuesday March 20, 2012. He was accompanied by the Investments secretary Ms. Esther Koimett, CBS. The Finance Minister informed the Committee that:i) The loan from Japan for the Medium Wave (MW) equipment was a Government guaranteed loan. He stated that the Government has been paying the loan on behalf of KBC but it has been debiting the corporation through the years. ii) Initially when the equipment was procured (in June 28th 1989), it was valued at KSh. 2.3 billion (16 billion Japanese Yen) at a rate of KSh 7.4 cts/100 Yen and an interest of 2.5% which was payable semi-annually. When the project was completed in 1994, the debt stood at Ksh 8.2 billion with an exchange rate of Ksh 54/ 100 Yen. The fluctuation of the exchange rates therefore caused the increase of the loan to KSh 22 billion. iii) The Minister who informed the Committee that he had examined KBCs income and financial statements stated that there were three elements that negatively affected the corporation. These were:a) High financial charges b) High personnel emoluments which constituted a third of all the expenses c) Depreciation of KBC assets hence the Corporation needed to find the title deeds for their land. iv) The Minister was concerned that the personal emoluments at KBC were too high and there was need for internal mechanisms to address the issue. He informed the Committee that Treasury planned to restructure the balance sheet of KBC with the specific aim of turning the huge debts into equity. He was

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however concerned that asset valuation process could be delayed by failure by KBC to produce some of the title deeds to their land. He therefore called for the management to acquire their title deeds as soon as possible. v) Though the Minister stated that though the corporation was technically insolvent, the Government has continued to fund the corporation because it was a strategic institution with a public service mandate. The funding over the years are KSh.1.3 billion in 2007/2008, KSh.352 million in 2008/2009, KSh. 200 m in 2009/2010, KSh. 450 m in 2010/2011 and KSh. 650m in 2011/2012. The Minister stated that it was not possible to up-grade the Corporation because it needed to sustain itself first before it was upgraded. He explained this by stating that State Corporations were graded according to their status for instance, those at grade D were those that were highly dependent on the Government while those at Grade A remitted returns to the Government such as the Kenya Pipeline Company (KPC). vi)The Minister informed the Members that the private media owners protested a previous directive by the former head of civil service that all Government TV advertisements should be channeled through KBC. They referred to the Public Procurement Act which made it unlawful for government agencies to directly award contracts without tendering. The government could therefore not issue similar directives. vii) The 2010 FIFA world cup rights was purely an initiative of KBC and the Treasury never issued any funds for the purchase of these rights. viii) Treasury had committed to the following in order to improve KBCs financial status:Review the reinstatement of TV licensing because the removal of this licensing had adversely affected the revenues of KBC. Increasing financial support to the Corporations profitable ventures and subsidizing the non-profit services that are for the public good. Restructure the balance sheet of KBC and converting its debt into equity.

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The Minister assured the Committee that he would follow-up the matter at the Cabinet level in order to seek ways of finding a comprehensive solution to the Corporations challenges. 2.6 MEETING WITH ENGINEER GICHINA KANYI The Committee held a meeting with Eng. Gichina Kanyi a KBC employee on Wednesday April 4, 2012. Eng. Kanyi who is currently seconded to the Parliamentary Broadcasting Unit was employed at the corporation during the procurement of the Japanese MW equipment. The Committee heard that:i) The Voice of Kenya (VOK) was declared functionally dead in 1987 by a Presidential Working Commission. The Commission recommended that the organization be restructured and new equipment procured. This led to the procurement of the MW equipment from NEC. The MW equipments were supposed to modernize radio broadcasting in Garissa station, Voi station, Yala station and Ngong station. ii) The loan amount included the package for technical consultants and government technical officers. The Government technical officers were not involved in the preparation of terms of reference for the project. iii) Eng, Kanyi was a junior employee then since he had just joined the corporation from the University and together with other Engineers, he was taken to Japan for training on the operationalisation and maintenance of the equipment. iv) The medium wave equipment was good because of its wide coverage and its ability not to be affected by natural barriers. Its only disadvantage was that it had low clarity compared to FM technology and was very costly. v) According to Eng. Kanyi, NEC was a reputable company thus the Government received the best equipment available in the market then. MW equipment is still very important because it can be used to broadcast to remote areas of the country. He however felt that a mix or infusion of medium wave technology and FM technology was very useful.

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vi) In hindsight, Eng. Kanyi admitted that given the chance again, he would implement more FM transmission sites in the country balanced with some MW technology to enhance broadcast coverage. vii) Eng. Kanyi was not aware of any commission payments to members of staff of KBC from the proceeds of Parliaments live broadcast. He denied ever receiving any such commission payments. Eng. Kanyi was seconded to Parliament from KBC but received an allowance directly from Parliament. viii) He had never heard of any sexually harassment cases in his stay at KBC and had never in his life sexually harassed anyone. The Committee made the observations that Eng. Kanyi was not fully aware of the intricacies surrounding the procurement of the MW equipment from Japan considering he was just a junior officer then. 2.7 MEETING WITH THE PERSON ACCUSED OF SEXUAL HARASSMENT The Committee held a meeting with the accused person on Wednesday 4th April 2012 and heard that:i) He had worked at KBC for almost six (6) years during which no one had ever accused him of sexual harassment. ii) He refuted the claims that he had bought gifts for any casuals or his colleagues nor invited them to exotic trips. He however admitted to have bought one of his colleagues (the alleged victim) a bottle of Amarula on his return from South Africa but denied ever buying her chocolates or perfume as she had alleged. iii) He was a friend of the alleged victim and in fact he had recommended her for employment at Metro FM. iv) His fallout with the alleged victim was purely work related and he had never attempted to sexually harass her at any given time. v) The witness suspected that he was being vilified because of his opposition to the strike since he continued to perform his duties while the other staffs

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were still on strike. He also suspected that his tough stance on his subordinates made him a target of the allegations. vi) He requested the Committee to fully investigate the allegations by his accusers because they were motivated by vengeance. vii) He recommended a proper recruitment policy to be put in place at KBC. This was because most of the staffs were not professionals nor competent enough to work for such an important Corporation. The Corporation had suffered brain drain as a result of most competent staff getting employed by other highly competitive media stations. viii) He assured the committee that he was not going to victimize his accusers. 2.8 MEETING WITH MR. PATRICK QUARCOO The Committee held a meeting on April 4, 2012 with Mr. Patrick Quarcoo, the CEO of Radio Africa Ltd. The purpose of the meeting was to deliberate on the saga surrounding the 2010 FIFA World Cup Rights. The matter was currently in court. Mr. Quarcoo informed the Committee that:i) The General Manager of KBC approached him in June 2009 and informed him that KBC had acquired exclusive rights to air the 2010 FIFA world cup. Upon further discussions, he decided to partner with KBC and exploit the rights which had been advertised in the local daily. He wrote to KBC expressing interest and was later invited to make a presentation. Radio Africa won the deal fairly. ii) Radio Africa signed an agreement with KBC whose terms included a 50-50 share of the cost and a 40-60 revenue share. Radio Africa would use its strong marketing infrastructure to advertise the 2010 World Cup tournament. iii) The Memorandum of Understanding (MoU) signed clearly indicated that no third party was going to be involved in the deal. However, KBC breached the agreement by selling the rights to Royal Media Services. The claim that the exclusive rights were only restricted to TV rights was therefore untrue. The Radio Africa Ltd. Team had discussed the exploitation of radio rights during their sales pitch to KBC and moreover the radio rights issue was included in the joint launch by the two media stations.
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iv) The two (2) companies held a joint account and collected over Kshs. 120 million but this fell short of the forecasted return of over Ksh. 300 million mainly because of the confusion created in the market by the controversy. v) Mr. Quarcoo later discovered that KBC had short changed him. He discovered that the deal with FIFA did not in any way give KBC the right to sell the exclusive rights to any other party. Furthermore, the actual amount that KBC paid for the rights to FIFA was $450,000 and not $700,000 as alluded. He contacted the Kenya Anti-Corruption Commission (KACC) and reported the matter. vi) He knew of a Mr. Ben Gituku who had done business once with one of Radio Africas subsidiaries, the Star Newspaper. Mr. Gituku was contracted to deliver newspapers to Nyeri. He categorically denied any other association with him. vii) Mr. Quarcoo cautioned that the move from analogue to digital was going to completely take away KBCs dominance in the remotest areas in Kenya. He however proposed that for KBC to survive in the dynamic media industry, it should be properly funded; should focus more on public service as opposed to commercial activities; should be a training ground because of its high journalism standards; should shift from MW to FM technology; and should be run by professionals. 2.9 ADDITIONAL EVIDENCE BY THE MANAGEMENT OF KBC The management appeared before the joint Committee for the second time on April 4 2012, and gave the following additional evidence:i) That at the beginning of 2012, the management had procured the services of a law firm to facilitate KBC obtain title deeds for its lands. ii) The management had commenced the process of de-commissioning the MW equipment and installing the FM technology in most stations around the country. The Masinde Muliro University had already expressed interest in the medium wave equipment for their engineering course. iii) With regard to storage and disposal of their old furniture, the management had on several occasions advertised for their sale but they had not received
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any buyers. The management had therefore made the decision to transport the furniture to Langata for storage before disposal. iv) An ad hoc committee to deliberate on the sale of KBCs unutilized parcels of lands had been formed. v) The MD confirmed that the corporation had received KSh. 650 million from Treasury in the 2011/2012 financial year. However, these funds were inadequate considering the stringent conditions from Treasury on their usage. Further, a huge amount of these funds was used up by recurrent expenditure such as power bills thus leaving little funds for development of the corporation. vi) The move to transfer vernacular stations to Nairobi was a business decision to provide 24 hour service to the listeners as the initial service operated on limited hours. They assured the committee that they would not phase out the vernacular stations and had just temporarily migrated their broadcasting to Nairobi. vii) The corporations tender and receipt committee which is responsible for evaluation of all tenders, is composed of heads of departments. The corporation secretary Mr. Paul Jilani was the Chairman of the Committee while the procurement manager was the secretary. viii) Most of the tenders were open tenders. Though three (3) companies associated with one individual had won tenders, they were all different tenders and this was not unlawful according to the Public Procurement Act. ix) The MD stated that the corporation had recruited Mr. Walter Mongare as the radio programmes manager for his talent and brand so as to increase radio revenues. The MD was however categorical that he was not present when Mr. Mongare was recruited.

2.10 EVIDENCE FROM THE WITNESS OF SEXUAL HARASSMENT

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The Committee held a meeting on Tuesday April 3, 2012 in camera with one of the witnesses accused by the alleged victim of shielding the accused. The witness who was under oath informed the Committee that:i) She had not been approached by any employee over the claims of sexual harassment in the recent past. The only case she had handled involved a Ms. Pauline Muturi who claimed she had been sexually harassed by a Mr. Ochako who was sacked from the corporation around two years ago. ii) She had worked with the accused for five years and she had never come across any complaint of sexual harassment from his colleagues. The only complaint she received was that he was very tough on his subordinates who in her opinion were lazy and not able to meet targets. iii) At no one time had she protected the accused against charges of sexual harassment. According to the witness, the accused was only vilified because of his tough and uncompromising work ethic. iv) She was however aware that the alleged victim and the accused had fallen out under unknown circumstances which adversely affected their working relationship. Following the meeting, the Committee observed that:1) The testimony given by the witness was credible and she had convinced the Committee beyond any doubt that the claims that she was protecting the accused were not substantive. 2) It was impossible to interrogate the witness without revealing the identity of the alleged victim. 3) The witness was a mentor of the victim and according to her testimony she had done everything possible to guide her. 2.11MEETING WITH ENG. PHILLIP OKUNDI The Committee met with Eng. Phillip Okundi on April 11, 2012 in his capacity as the chairman of the Presidential Working Group in charge of restructuring VOK and responsible for procuring the MW equipment from Japan.

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The Committee heard that:i) He was appointed the chairman of the Presidential Working Party in 1989 to make recommendations for the reforms of VoK into a state enterprise managed commercial so as to reduce its dependency on Treasury; ii) KBC was established under an Act of Parliament just like other Parastatals and that the late Dr. Julius Kiano was appointed the Chairman; iii) In 1993, he was appointed the MD of KBC which he managed well although KBC was not totally self reliant yet; iv) Most of the money raised was used to develop staff and infrastructure; v) He left KBC for Kenya Bureau of Statistics (KBS) in 1997. Regarding the MW equipment acquired from Japan, Eng. Okundi indicated to the Committee that the funds were issued in form of a grant. On being informed by the Committee that this could not be the case considering KBC was still servicing the loan through Treasury, Eng. Okundi requested for time to seek for the facts surrounding the issue considering it took place more than 20 years ago. 2.12 MEETING WITH THE CHIEF OF THE RADIATION PROTECTION BOARD On Wednesday April 11, 2012 the Committee met with the Chief of the Radiation Board who informed the Committee that:i) The radiation protection board was mandated to deal with ionized radiation but the radiation under discussion is non ionized radiation. ii) Kenya lacks a legal framework on non-ionized radiation and that there was a zero draft bill on the same. iii) The board identified the gap and resolved to work with other relevant bodies including the Communication Commission of Kenya (CCK). The Board and CCK have an MOU whereby the board provides technical advice to CCK on invitation.

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iv) Occupational exposure varies from one station to the other and as at 12th April 2012 KBC offices in Nairobi were checked and were found to be below the 10% watts per meter square. v) That funds allocated are not enough to manage radioactive waste project that is ongoing in Karen. That the Ksh. 800 million project had only received 200 million shillings in the last two years; Following the deliberations the Committee raised the concerns on the alarming and rising levels of cancer in the country and sought to understand its link to radiation. It was also concerned that the management of radiation in the country was extremely underfunded. The Committee recommended that the 66 KBC Stations should be screened for non-ionized radiation. 2.13 WRAP UP MEETING WITH THE MINISTER FOR INFORMATION AND COMMUNICATIONS

The Committee held a wrap up meeting with the Minister for Information Hon. Samwel Poghishio, EBS, MP on Wednesday April 11, 2012. The Committee heard that:i) The Ministry was aware that KBC had a lot of assets some of which was being encroached on especially land without title deeds. The PS had made several efforts to address the matter including drafting cabinet memos with little success. ii) The PS denied the allegations that the Ministry interferes in the running of KBC and that he had no hand in the appointment of either the Board or the MD. iii) The PS denied the allegations that staffs were being victimized for participating in the strike and informed the Committee that no staff or artistes were issued with sacking threats. With regard to the issue of forcing artistes to sign new contracts, the PS informed the Committee that the artistes would be hired but their previous years of service at KBC could not be included in the new contracts.

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iv) The PS admitted that there was an irregularity in contracting artistes on a temporary basis for too long without hiring them on permanent and pensionable terms. 2.14 FINAL SUBMISSION BY THE PETITIONERS Appearing before the joint Committee on April 19, 2012 for a wrap up meeting, the representatives of the petitioners provided the following additional evidence. 1. Return to work formula The petitioners stated that the return to work formula had generally not been adhered to. 2. KBC assets and equipment audit (i) KBC owns a lot of assets but is ironically heavily indebted. The Committee heard that a parking space near the KBC offices in Nairobi was being operated by Stella scope trading Company yet KBC owed KSh 231 million shillings arrears in land rate charges with regard to this parking. (ii) That the equipment at KBC was obsolete. (iii) That management seems to collude with scrupulous individuals to grab KBC land. The KBC land in Komarock had been distributed to private developers but was only reverted after the area Member of Parliament raised the concern. (iv)That there was need for an audit of the KBC staff houses in Shauri moyo. 3. Content manipulation and interference The petitioners stated that KBCs broadcast content is manipulated and cited cases whereby news anchors received calls just before going on air to delete particular news. For instance, the petitioners alleged that they had been instructed not to interview MPs during the joint Committee inquiry and that a particular news anchor had been asked to delete clips of the Committee visit to KBC Nairobi offices.
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4. Irregular payments on Commission on revenue collection There is irregular payment of commissions for revenue collection as only some of the KBC debt collection staff were getting paid contrary to the discussions with the management. The Committee heard that the disparity had caused a rift among staff in the department. 5. Pensions and Medical Scheme The Committee heard that there is mismanagement of the pension scheme and that there was a likelihood of KSh 700 million shillings of workers pension getting lost. The medical scheme was running into arrears of millions of shillings due to non remittance by the management. 6. Hiring and Promotion The Committee heard that the management had hired new managers without following due process despite the claims that KBC was overstaffed. These managers included:Deputy Editor in Chief who was head hunted from K24 Human Resource Manager who was freshly recruited Editor in chief who is an immediate former Board Member The deputy editor in Chiefs position was not advertised. The petitioners informed the Committee that the marketing department of KBC was a small department yet it has three managers thus the staffs were not sure who to take instructions from. The petitioners requested the Committee to do the following:(i) To assist the petitioners by requesting the management to provide a list of how much the organization owed each individual staff member; (ii) To intervene on behalf of the artistes who were being forced to sign a three month contract which will cause them to lose the earlier years they had worked for KBC;

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(iii) To review the KBC Act (CAP 221), with a view to harmonizing the law with the Constitution and strengthening the competitiveness of KBC. The Committee noted the following:(i) That the allegations of victimization had been supported with evidence. (ii) That the sexual harassment allegations could not be substantiated; (iii) That the allegations on content manipulation were backed with evidence of cited cases; (iv)That the back-to-work-formula has been violated only to the extent that the artistes were under duress to sign a 3 month contract. However, some aspects of the formula were to be implemented over a certain period of time and the Committee could therefore not determine whether they had been violated or not. (v) That the assets of KBC are likely to end up in private hands if the legal documents of legitimate ownership are not fast tracked; (vi)That the petitioners presented a list of staff totaling 877 employees in the KBC payroll as at March 2012. Some of the employees were alleged to have since died or left KBC. That KBC is therefore not overstaffed in view of the fact that the difference in the list of staff is the additional list of artisans who are not on full employment; (vii) That KBC had just hired new staff amidst their own management claim of being overstaffed. KBC management does not follow proper hiring and promotion procedures; (viii) That KBC has a weak organogram that is subject to manipulation.

2.15 VISIT TO KBC OFFICES IN KISUMU The Committee visited the Kisumu offices on 22nd March 2012 and heard that:i) Kisumu regional office is headed by a Controller, Mr. Julius Chacha. He is incharge of the affairs of the Nyanza and Western region.
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ii) The Kisumu office was basically a vernacular station base and most transmitting stations apart from Yala station were operating on medium wave. iii) Kisumu hosts MTN and KEMRI on their transmitters and there were no cases of piggy-backing on KBC transmitters spread around the region. iv) Employee issues were handled at the Nairobi office and over the years this had created confusion in the management of employees based in the regional offices. v) The regional offices required additional staff and equipment e.g. portable recording machines. vi) The technical staff alleged that they were not being compensated for the overtime services they provided. vii) There were no clear-cut policies on promotions as some employees were promoted to head certain divisions but their pay-grade was two levels lower. viii) After Yala transmission station switched from MW to FM technology, power consumption automatically reduced. The power cost was reduced from approximately KSh 1,000,000 to KSh 30,000. The joint committee found out the following. That:i) Kisumu regional office was operating on a small work force whereas in Nairobi there were citations of a bloated workforce. ii) The Kisumu offices were located on a 12 acre piece of land. However, the land was not being fully utilized just as was the case at the Yala transmission site. iii) The medium wave equipment that was decommissioned at the Yala transmission station was occupying a lot of space. The Corporation should consider donating the equipment to Kenyan Universities for research.

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iv) Regional technicians should be fully involved in the procurement and supply of new equipments and spare parts. v) The Human Resource manager in Kisumu was facing a lot of challenges in the management of the regional staff considering she was reduced to only implementing the decisions made at the KBC headquarters in Nairobi. vi) The staff did not have the title deeds for the lands where the Kisumu regional office and the Yala transmission site were located and therefore the land was prone to land grabbing schemes hatched by unscrupulous people. 2.16 VISIT TO KBC OFFICES IN NAIROBI The Committee visited the Nairobi offices on Tuesday 27 March, 2012 and noted that:i) The building did not have adequate security and the rooms housing crucial equipment were easily accessible. ii) The production centre had poor air conditioning and was not conducive especially during the hot season. iii) The number of staff restrooms was inadequate compared to the large number of staff. Further, the restrooms did not have the essentials like toilet papers, hand dryer etc. iv) The organization was crowded with many people walking around. It was very hard for one to distinguish between a visitor, an intern and staff. v) The building did not have wireless internet connection thus affecting communication especially for staff in the production department. The staff resorted to printing and physically transferring information which led to time wastage. vi) The training and maintenance room was of low standards and could be confused for a junk yard. vii) There was poor storage of excess and obsolete equipment leading to high depreciation of the equipment. The Committee observed that the
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government was losing millions of shillings due to high depreciation of the equipment. viii) The offices at KBC were in a poor state. The library had worn out furniture; out-dated books; lacked space; the HR department which was a tiny room with spoilt floors, lacked ICT facilities and had personnel files which were rotting. ix) The digital platform needed to be rolled out countrywide in order to increase efficiency and effectiveness in broadcasting. x) The joint Committee recommended the refurbishment of the production room, library, and restrooms. 2.17 VISIT TO KBC OFFICES IN NYERI The Committee visited the Nyeri offices on Wednesday 28th March 2012 and heard that:i) The technical staff does general operation, routine and corrective maintenance work for both KBC and private transmitters hosted at the Nyeri transmitting station. ii) The services were run on a 24 hour basis and operated on shifts to ensure that all hours were covered. The Chief Technical Officer (CTO) was usually on standby throughout. The staff however did not receive overtime for the extended working hours. iii) The employees on the night shift were prone to radiation leaks from the microwaves because they did not have protective gear. iv) The site had old equipment that needed replacement. They had requested management to provide them with back-up equipments but were yet to receive them. v) The Nyeri site was understaffed. Further, the staffs were underpaid. vi) The staff complained of job stagnation and irregular promotions.

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vii) There were irregular appointments and use of inexistent job titles for instance Engineer in charge. The correct job title was Chief Technical Officer in job group BE 4. viii) The requisition period for spare parts was very long. ix) The site did not have internet connection forcing the employees to go to a cyber cafe about 10km in town- in order to communicate with their clients or management in Nairobi. They also relied on speed posts to communicate with management in Nairobi. x) The employees at the station have been using a borrowed mobile phone since March 2009. A requisition No. 105826 dated 20/03/2009 was raised for the said item and approved for purchase by the relevant committee but the phone has never been delivered to date. xi) There were no cases of sexual harassment at the site. xii) The employees at the site were demoralized because they did not receive any recognition, appreciation or motivation from the management when they performed a commendable job. During the tour of the Nyeri KBC transmission site, the Committee noted that the employees were prone to radiation leaks. The Committee therefore recommended that the Radiation Protection Agency conducts a radiation study at all KBC sites. 2.18VISIT TO KBC OFFICES IN MOMBASA The Committee visited the KBC Mombasa offices in Nyali on Friday May 4th, 2012 and made observations that:i) The Nyali property is 22 acres, a quarter () of which has been grabbed by the Mombasa Municipal council. The matter is before the Mombasa law courts. ii) There were no staff deployed on site except a sweeper and one security guard employed by KBC.

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iii) There is a shortage of equipment as only 13 computers were serving the 47 staff. iv) The offices were generally untidy and stuffy and that the studios were in bad shape and lacked equipment. v) The roof was leaking and the walls of the building were likely to collapse especially in the radio link room. vi) The cameras in use were obsolete. vii) The central air conditioning had collapsed fifteen (15) years ago. viii) Bureaucracy and red tape is excessive at KBC. ix) The Pwani studio was occupied by four (4) strangers who were said to be friends of the radio presenter. x) There was poor security at KBC as it was guarded by unarmed security officers. The perimeter fence was wasting away therefore the building was easily accessible to outsiders. xi) The Mombasa KBC station was neglected by the management. xii) The staffers in the sales office were well organized. The marketers had a target of KSh. 6 Million per month for Pwani FM radio and were able to achieve a collection of between Ksh.4.5 to 5.5 million per month. The Committee observed that Pwani FM was profitable and congratulated the marketing department. xiii) The Committee noted the concern of the department that their commission payments took more than three (3) months due to bureaucracy at the headquarters in Nairobi. xiv) The Committee was given a media blackout during the tour of the Nairobi KBC facilities on the 27th March 2012. xv) The staff were qualified but underutilized. They further lacked training and capacity building programmes for its staff.

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xvi) There was a weak internal communication structure. xvii) Mombasa was initially designed to operate a TV station with 14 TV channels which were disbanded by the former MD Mr. Wachira Waruru on the basis that they were not profitable. The Committee was requested to recommend the revitalization of the TV station. xviii) The work environment was extremely poor and characterized by salary and commission delays.

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CHAPTER THREE: COMMITTEES FINDINGS, OBSERVATIONS AND CONCLUSIONS The Committee made the following findings, observations and conclusions and recommendations. Administrative issues i) The Committee notes that the recruitment and promotion procedures of staff at KBC are questionable. ii) The Committee finds that the circumstances in which all the employees were promoted one scale higher without any financial benefit was irregular. The Committee notes that the management had stated that they were implementing a recommendation of the FKE report 8 yet upon scrutiny of the said report the Committee found that it did not make any specific recommendation to that effect. iii) The Committee observes that the management arbitrarily promoted the principal internal auditor, the assistant editor-in-Chief and the Finance Manager to a higher grade notwithstanding the fact that these officers had benefited from the mass promotion. iv) The Committee observes that the qualifications of the HRM as advertised in the papers on 8th April 2010 required the candidate to posses an undergraduate degree, a post graduate diploma in human resource management and a Masters in Business Administration. The Committee further observes that the qualifications of the MD required lower qualifications than the HRM of only an undergraduate degree in social Sciences despite the MDs position being a superior position. The Committee therefore notes the anomaly and further that the advertisement for the position of MD seemed to be in favour a specific candidate. v) The Committee notes that despite the critical role played by KBC as the State broadcaster, the Corporations employees are poorly remunerated.

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vi) The Committee notes that the FKE report contains suitable recommendations that can address the numerous administrative challenges faced by KBC. 2. The appointment of unqualified Radio Programmes Manager i) The Committee notes that the appointment of Mr. Walter Mongare as the Radio Programmes Manager of KBC was irregular. Whereas the job description 9 of the radio programmes manager required the candidate to possess a degree in communications, the documents submitted 10 indicate that Mr. Mongare holds a Diploma in Graphics (desk top publishing) from Kul Graphics and is yet to complete his degree at Kenyatta University (KU) which he has been pursuing since 1996. ii) Despite his inadequate qualifications, the Board sanctioned his recruitment to head a critical department based on his talent as a comedian. Indeed, the PS, Ministry of Information and Communications noted before the Committee that the board disregarded is advice to appointment Mr. Walter Mongare to a position similar to his previous position as a comedian. iii) The Committee notes that the hiring of an unqualified manager has caused discomfort among KBC staff and was one of the reason for the strike 3. The plight of Artistes and casual staff of KBC

i) The Committee notes that despite playing an important role at KBC, the artistes and casual staff have been neglected and are treated as second class employees notwithstanding the fact that a majority of them have superior academic qualifications than permanent employees of KBC 11 . 4. Financial issues

a) Exchequer support to KBC

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i)

The Committee notes that KBC is insolvent a fact which the Minister for Information and Communications and the Minister for Finance concurred with and that there is need for massive injection of funding to KBC to protect it from imminent collapse.

ii) The Committee notes that revenue collected at KBC is not properly documented. iii) The Committee observes that the Government has been funding the corporation because it is a strategic institution and that the funding over the years has been KSh.1.3 billion in 2007/2008, KSh.352 million in 2008/2009, KSh. 200 m in 2009/2010, KSh. 450m in 2010/2011 and KSh. 650m in 2011/2012. The Committee however notes that the expenditure of KBC is higher than the revenue and that there is need for increased funding to KBC. iv) The Committee notes that KBC has suffered from lack of financial support from the Government considering the government usually requested for live coverage of its functions yet it did not pay for the same. b) The Japanese Loan i) The Committee observes that the balance of the Japanese loan undertaken for the Radio MW modernization project in 1989 stood at KSh. 22 billion and was adversely affecting the corporations financial status. The Committee further observes that due to the inability of KBC to meet its loan repayment obligations Treasury was paying on its behalf but expected reimbursement from KBC with interest at market rates. ii) The Committee notes that the main cause of KBCs financial problems is repayment of this loan. According to the 2009 KBC accounts, the total gross income of KBC was Kshs. 1,405,644,645.06 against the expenditure of Kshs. 3,535,016,696.71 which comprised of financial charges of Kshs. 1,943,326,391.32 as the money paid to Treasury by KBC on account of the Japanese loan. As a result KBC made a loss of Kshs. 2,129,372,051.65. This confirms that KBC is solvent save for the Japanese loan. iii) The Committee observes that Treasury is considering the restructuring of the balance sheet of KBC and specifically turning the huge debt into equity.
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iv) The Committee is agreeable to the proposal that the government should encourage its agencies to place a certain percentage of their advertisements with KBC in a similar way it has compelled government agencies to use public facilities like conference centers. 5. Protection of the workforce i) The Constitution under Article 34 (4) has a provision for protecting state owned media from undue interference by government and their agents. The Committee however notes that there is no specific law protecting the office holders of State broadcasters from victimization for failing to yield to political influence. ii) The Committee further notes that to a certain extent, there has been interference in the management of the Corporation. This can be deduced from the exit of several MDs under unclear circumstances and from the cited cases of influence on the broadcast content. iii) The Committee notes that the KBC Act Cap 221 is outdated and needs to be reviewed to make it consistent with Article 34 (4) of the Constitution and to confer independence to the managers of the institution to protect them from political interference. 6. Sexual harassment i) The Committee observes that both the former and current management claimed that there had not been any official reports of sexual harassment. However, the Committee notes that there were no channels or mechanisms for reporting such cases. ii) The Committee observes that the alleged sexual harassment victims were reluctant to appear before it for fear of victimization. The Committee therefore finds that the evidence was not sufficient to substantiate these claims.

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7.

Staff victimization Mr. Milton Nyakundi

i) Having examined the correspondences between Mr. Milton Nyakundi and KBC 12 the Committee finds that Mr. Nyakundi willingly resigned from KBC. The Committee observes that though Mr. Nyakundi alleged that he wrote the resignation letter under duress, the Committee was not able to confirm this allegation. The Committee however notes that the management was treating him unfairly by denying him access to the KBC premises to finalise his clearance. The Committee concludes that he has a right to access the premises to finalise his clearance and that the same ought to be granted. 7. Allegations of flawed Procurement Process a) Allegations of flaws in awarding of tenders and pre-qualification of Companies i) The Committee observed that tenders were awarded to several companies associated with one person. Evidence submitted before the Committee by the management of KBC confirms that York investments Ltd., Grand photolab E.A Ltd. and Leon Insurance company pre-qualifed by KBC are indeed owned by the same individual. The Committee is still awaiting the information from the Registrar of Societies and is therefore unable to establish the owners of Royal Business Technologies and Central Works Company even though the document tabled by the Management of KBC 13 indicates that Royal Business Technologies has got only one Director, a Ms. Ann W. Kihu which the Committee finds unusual. ii) From the documents supplied by the Management of KBC, the Committee notes that the Grand Photolab and York Investments appears to have been involved in several tenders.
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iii) When the KBC management appeared before the Committee they disputed the above allegations and asserted that even though considerable business has been given to the three companies associated with one individual, at no point had the companies ever bid against each other on the same tender.

iv) The Committee notes that a team from the Public Procurement Oversight Authority (PPOA) is investigating claims of alleged malpractice at KBC and in particular whether the procurement laws were adhered to. The Committee observes that the authority has requested the corporation for all the relevant documents 14 . b) The case of Kenya Auto Electrical Ltd i) The Committee notes that there was no irregularity in the approval of a request by the Kenya Auto Electrical Ltd for extension of the tender closing date in its letter dated 5th March 2012. The Committee observes that the said company was not pre-qualified for the year 2011-13 15 though it is listed amongst the companies that collected tender documents for the year 201011 16 . With respect to the complaints raised against Kenya Auto Electrical Ltd concerning the letters dated 31/1/12, 9/2/12 and 5/3/12 17 , the Committee finds no irregularity considering the company was requesting for the original bid- bond in order to cancel it and not an extension of the tender. c) Conflict of Interest on part of Board Members Mr. Stephen Areba i) The Committee notes that Broadcast Solutions International Limited a company owned by a Board member, Mr. Stephen Areba was pre-qualified to supply equipment for the year 2011-2013 thereby constituting a clear case of conflict of interest on the part of the particular Board member and
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therefore in violation of section 12 of the Public Officers Ethics Act Cap. 183 and by extension impacting on the credibility of the entire KBC Board. ii) The Committee observes that the Chairman of the KBC Board Mr. Charles Muoki had mentioned that Mr. Stephen Areba had previously approached him requesting for permission to transact business with KBC a request which he turned down. He however stated that he was not aware whether Mr. Areba was currently transacting business with KBC. The MD clarified that there was an existing contract between KBC and BSI Ltd for co-siting though the tender was awarded long before Mr. Stephen Areba joined the Board. The Committee noted the discrepancy in the evidence provided by both the management and the Board. iii) Contrary to the above assertions, the Committee noted that the list of companies and business transacting with KBC for 2010-2011 18 and prequalification of supplier for 2011-13 19 , indicate that BSI Limited is pre-qualified for 2011-13 to supply the following to KBC:a. CAT.A SUB.CAT.1 Supply of Transmitters b. CAT.A SUB.CAT.2 Supply of Broadcasting tapes, cassette, VCR, DVD & Players c. CAT.A SUB.CAT.3 Supply of Radio, TVs & other electronic requirement d. CAT.A SUB.CAT.2 Supply of Broadcasting tapes, cassette, VCR, DVD & Players

iv) The invoices, payment vouchers, delivery notes, Local Purchase Orders (LPOs) and minutes of the KBC tender evaluation committee 20 further show that BSI was awarded tenders and traded with KBC in the year 2010. The Committee notes that on 27th October, 2010, the Company was paid Kshs. 373,948.45 vide cheque No. 535716 for the supply of studio equipment and
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on 27th May, 2011, the said company was paid Kshs 94,500 by cheque number 770127 for supply of FM tuner. The Committee therefore notes that BSI traded with KBC in the year 2010 and 2011 and is a pre-qualified supplier for 2011-13 despite its director Mr. Stephen Areba being a Director of KBC. The Committee finds that the Chairman of the KBC Board and the MD deliberately misled the Committee with respect to the business relationship between KBC and BSI and that either the Chairman was being evasive in his evidence or he was truly not aware of the dealings at the corporation. Mr. Ben Gituku i) The Committee notes that Mr. Ben Gituku, a director of the KBC Board did not concurrently sit at the Board of Radio Africa Group Ltd but he had previously been a supplier for the Star Newspaper a subsidiary of the Radio Africa Ltd. The Committee notes that Mr. Gituku had written a letter 21 to the Committee refuting the claims. The Committee however observes that he sat at the KBC Board during the award of the FIFA World Cup rights in 2010 to Radio Africa Ltd. 8. Misappropriation of funds from the Parliamentary Broadcasting Services

i) The Committee observes that KBC receives Kshs. 15 million monthly from the KNA on account of live coverage of proceedings. The Committee however finds that the submission by the management that the proceeds were used to purchase cameras dissatisfactory since the Parliamentary Broadcasting Unit (PBU) has acquired its own cameras. ii) The Committee is dissatisfied with the response by the KBC management to counter allegations that a commission of Kshs. 200,000/- is paid to one of the senior managers at KBC. The management in their submission informed the Committee that payment of commissions at KBC was based on the revenue collected and the targets set. Considering Parliament was one of the sources of revenue, a commission was paid from the proceeds of live broadcast of Parliamentary proceedings to the employee in charge of the Parliamentary account.
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iii) The Committee was further informed that the commission rates were dependent on the grade and that the money was pooled and distributed to all the staff involved in the process. The Committee however notes that there is apparent discrepancy in these commission payments considering the PBU staff disputed 22 receiving any Commissions from the pooled money despite playing a crucial role in the process. iv) The Committee further notes that KBCs award of commission to its staff was prone to abuse. While acknowledging that it is common practice for media houses to award commission to a section of its employees particularly marketers, the Committee notes that at KBC, sales commissions are paid to marketing staff and revenue collection commissions to finance staff. From the documents submitted 23 , the Committee finds that the payment of these commissions is skewed. 9. Corrupt practices on part of senior staff of KBC

10. The closure of Metro FM and the establishment of Venus FM i) The Committee notes that the decision to close Metro FM and to set up Venus FM was informed by sound commercial decisions and that there is little the Corporation could have done in view of the dwindling advertising revenue. 11. Status of KBC land iii) The Committee notes that KBC has 36 parcels of land scattered in different parts of the country with an estimated market value of Ksh. 2.8 billion. The Committee however notes that the management does not possess the title deeds to all the parcels of land. iv) The Committee further notes with concern that land had been grabbed at the Mombasa site and was the subject of a court case. 12. Working conditions at KBC facilities

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i) Following the tour of the KBC stations and transmission sites in Nairobi, Kisumu, Nyeri and Mombasa, the Committee observes that the working environment was not conducive and that the offices needed thorough refurbishment. ii) The Committee further notes that the management of the KBC sites was centered at the KBC headquarters in Nairobi therefore causing operational delays. Further, the staff based at the transmission sites were neglected. iii) Following the visit to Nyeri transmission site, the Committee is concerned that the level of radiation emission from the equipments is high and that the same has had an adverse effect on the health of the staff working there. From its interaction with the Radiation Protection Board of Kenya, the Committee notes with concern that the Board is not in a position to measure and monitor Non- Ionizing Radiation (NIR) 24 in the country due to poor funding and a weak regulatory frame work. 13. ICT and Technical Issues i) The Committee observes that KBC has outdated equipment and lags behind in the ICT and technical area. The Committee notes that there is a glaring lack of ICT and technical maintenance tools in key operation areas coupled with lack of well equipped workshops for equipment testing and corrective maintenance.

CHAPTER FOUR: RECOMMENDATIONS The joint Committee recommends that:1. KBC should be restructured and reformed to a National Public Broadcaster fully funded by the Exchequer. The new structure of KBC should include
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among others, a commercial department, a technical department and an infrastructure department. 2. Considering the present state of affairs at KBC most of which have been caused by poor management and administration, the Board of Directors and the Management of KBC should take responsibility. 3. The joint Committee is concerned by the failure of the Minister for Information to implement an earlier recommendation made by the Departmental Committee on Energy, Information and Communications and adopted by Parliament that the KBC Board be re-constituted. The joint Committee recommends that the Minister for Information and Communications disbands and reconstitutes the Board of KBC, within thirty days. 4. All the senior managers and heads of department of KBC should be interviewed and vetted by the newly constituted board to ascertain their suitability for the managerial positions. 5. The management should implement a comprehensive policy on recruitment and a scheme of service to guide employment, promotions, transfers and grading of staff. 6. KBC Board should hire a Human Resource firm to harmonize and rationalize the staff and management structure at KBC. Following this harmonization, the artistes and casual staff at KBC should be given priority during recruitment, considering their high qualifications and experience. 7. The Board should review KBCs policy on award of commissions to its staff and ensure that the permanent and pensionable members of staff do not draw any commissions whether from sales or revenue collections.

8. The KBC Board should conduct a thorough audit of the working conditions at KBC with a view to improving the same. 9. The Board should conduct an audit of all KBC assets. Moreover, KBC should move with speed to obtain all the title deeds of its land with a view of safeguarding the same against land grabbers and unscrupulous individuals.

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10. The Board should establish internal mechanisms or channels of communication that encourage victims of sexual harassment to report such incidences whenever they arise. Further, a policy framework on sexual harassment should be formulated to ensure perpetrators are dealt with accordingly. 11. The Minister for Finance should take the necessary steps towards improving KBCs financial status including restructuring its balance sheet by converting KBC debt into equity. 12. The Government should increase its financial support to KBC to accelerate the process of restructuring and reforms and enable it effectively perform its role as a National public broadcaster. 13. The Government should as a matter of urgency negotiate with the Japanese government to write off the Japanese loan acquired for KBC in 1989 for the purchase of the Medium wave equipment which are obsolete. 14. The KBC board should establish an automated financial management system. 15. The Minister for Information and Communications should review the KBC Act Cap 131 in order to re-align it with the Constitution in particular Article 34 (4), to ensure that the National public broadcaster is independent and free from political influence. 16. The Government should upgrade the corporations equipment and studios to ensure that KBC has state of the art technology. 17. In order to protect the employees working at the transmission stations from exposure to spurious non-ionizing radiation, the Ministry of Public Health and Sanitation should fast track the enactment of the Radiation Protection Health and Safety Bill to repeal the radiation protection Act. Further, the board of KBC should immediately provide radiation safety gear to employees working with radiation equipment. 18. Security detail at KBC offices and stations should be enhanced to safeguard the premises from access by unauthorised individuals.
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19. KBC should establish proper internal mechanisms to resolve disputes between employees and the management. 20. The return-to-work formula agreed between the management and staff should be honoured.

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