NSSF: A case of firms ‘born’ to tender

NSSF headquarters in Dar es Salaam. 

Accusations have been rife that certain social security funds are being influenced by key public figures to sink members’ funds in dubious investments. Picture: Leonard Magomba 

By WILFRED EDWIN

Posted  Monday, June 8  2009 at  00:0

The Tanzanian National Social Security Fund is in the spotlight yet again for selling its property irregularly — this time to a firm which was registered three weeks before the tender was floated.

A report obtained by The East-African indicates that the property, apartments at Ada estate in the posh areas of Kinondoni district in Dar es Salaam were sold under a dubious contract.

The $6.5 million sale, which involves property measuring 4.6 acres has raised a number of yet to be answered questions. For instance, what is the track record of Seven Anchors Properties and Services Company Ld, the company which purchased the property?

The new revelation by the Controller and Auditor General (CAG) points at just how pension funds can be manipulated to benefit a few powerful individuals contrary to the Procurement Act 2004.

The report has indicated that Seven Anchors was incorporated on October 11, 2006, three weeks before the advertisement of the sale of the apartments was made on November 2, 2006.

The tender evaluation committee comprised six members, contrary to Regulation 90(1) of the Procurement Act 2004 which requires the procuring entity to establish an evaluation committee comprising not less than three and not more than five members.

Further, the evaluation committee was appointed by the director of human resources and administration but not recommended by Procurement Management Unit and approved by the chief executive officer as per section 33(e) of the Public Procurement Act.

The Fund acquired property comprising of a site measuring 4.6 acres on plots 80/1 and 90/2 located at Ada estate in Kinondoni on December 6, 2000 from the Tanzania Zambia Railway Authority for Tsh1.4 billion ($1.3 million).

Plan to develop the plots started in 2002. The construction kicked off on September 1, 2004 and was completed on June 20, 2006 at a total cost of Tsh5.94 billion ($5.6 million).

The tender for the sale of the property — eight blocks each with four apartments — was subsequently advertised on November 2, 2006. On January 10, 2007 the tender was awarded to Seven Anchors Properties and Services Company Ltd.

Controller and Auditor General Ludovic Utouh said that after a review of the documents availed, irregularities were noted in tender evaluation documents, tender evaluation committee, opening ceremony register and bidder documents.

In the tender evaluation documents, auditors failed to obtain the original evaluation report. The report was said to be with the Prevention and Combating of Corruption Bureau.

“Though a photocopy of the report was available, it was not dated, hence we could not ascertain whether the evaluation was done as required by section 33 of the Public Procurement Act of 2004,” said Mr Utouh.

During the opening of the tendering process, the register signed by both the Fund’s representative and bidders’ representatives was not made available to auditors despite several requests.

Further, original bid documents could not be read since they were damaged by water