Buyers were to pay for estate roads

PHOTO | FILE Central Organisation of Trade Union secretary General Francis Atwoli. Ms Jacqueline Mugo, the executive director of the Federation of Kenya Employers (FKE) and Mr Atwoli, both publicly disowned the Tassia project which they said was irregularly approved.   NATION MEDIA GROUP

In Summary

• Property purchasers entered agreement with NSSF to pay Sh1.2 million for infrastructure
• In one of the ‘tenant purchase agreement’ that the buyers entered into with the National Social Security Fund and which the Nation has seen, the purchaser was required to pay Sh1.2 million, which was to be paid in instalments.
• Ms Jacqueline Mugo, the executive director of the Federation of Kenya Employers (FKE) and Mr Francis Atwoli, the secretary-general of the Central Organisation on Trade Unions (Cotu) both publicly disowned the project which they said was irregularly approved.

By SAMWEL BORN MAINA
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The controversy surrounding the multi-billion shilling Tassia project has deepened after it emerged that buyers of the 5,500 plots in the estate were to pay for the roads and sewerage system.

In one of the ‘tenant purchase agreement’ that the buyers entered into with the National Social Security Fund and which the Nation has seen, the purchaser was required to pay Sh1.2 million, which was to be paid in instalments.

The initial deposit was set at Sh239,175 while the rest was to be paid with Sh10,548 monthly instalments at 12 per cent interest per year.

The agreement further held that, buyers would be responsible for other charges related to the property which include rates and land rates and that NSSF sold the property as unserviced portion of land.

In addition the buyer would be deemed as having full notice and knowledge of the state of the property, after entering the agreement.

Recently, the NSSF board agreed to spend Sh5 billion on roads, sewage system, drains, street lights and other infrastructural development in Tassia.

But the project faced hiccups after two key parties in the NSSF Board of Trustees questioned the manner in which the expenditure was approved through e-mail messages.

Ms Jacqueline Mugo, the executive director of the Federation of Kenya Employers (FKE) and Mr Francis Atwoli, the secretary-general of the Central Organisation on Trade Unions (Cotu) both publicly disowned the project which they said was irregularly approved.

Mr Atwoli blew the whistle by describing the irregularities in the project as the “scandal of the year” after NSSF approved the release of over Sh5 billion for the project.

He said request for approval was sought through an e-mail circulated on December 18 and the project was approved the following day.

According to Mr Atwoli, the release of Sh5 billion was unnecessary because the cost of building roads and a sewerage system in the new estate was supposed to be met by owners.

NSSF board of trustees, led by acting managing trustee Richard Langat, however insisted that the project was properly approved.