Kambi admits overstepping mandate in NSSF Tassia project

Mr Kazungu Kambi, the Labour Cabinet Secretary. FILE 

By EDWIN MUTAI

In Summary

• NSSF risks paying Sh5 billion to a Chinese firm that was awarded the tender competitively if the contract is cancelled.
• Mr Kambi admitted that he acted in public interest to suspend the project following concerns raised by workers umbrella union Cotu.
• He said no money has been paid to China Jiangxi following the award of the contract because of its suspension.

Labour Cabinet secretary Kazungu Kambi overstepped his mandate in suspending the controversial Sh5.053 billion Tassia infrastructure upgrade.

As a result, National Social Security Fund (NSSF) risks paying Sh5 billion to a Chinese firm that was awarded the tender competitively if the contract is cancelled.

Mr Kambi admitted that he acted in public interest to suspend the project following concerns raised by workers umbrella union Cotu. He said no money has been paid to China Jiangxi following the award of the contract because of its suspension.

Mr Kambi told the departmental committee on Labour and Social Welfare that he was never briefed on the project when he took over office 10 months ago but only learnt of it when it was advertised in October last year.

“The project was brought to my attention when it was advertised last October. I saw it in newspapers and I called then Managing Trustee Hope Mwashumbe who told me she had authorised advertisement of the tender,” Kambi said.

“As a Cabinet secretary, I am only involved in policy matters but not procurement. Not even the board is involved in procurement,” he told the Labour and Social Welfare Committee.

The committee is investigating how the NSSF board of trustees varied the cost of the Tassia II utility upgrade from the initial Sh3.3 billion to Sh5 billion. This is after the Central Organisation of Trade Unions secretary general Francis Atwoli on New Year eve questioned the variation in cost.

Mr Atwoli has insisted that the approval of the multi-billion shilling infrastructure development project is illegal and fraudulent and called for prosecution of officers who were involved in its approval.

READ: Employers oppose NSSF’s Sh5bn Tassia upgrade plan

Committee chairman David Were put Mr Kambi on the spot when he sought to know if the minister was briefed on the matter when he took over office.

“When Mr Atwoli came up with this matter, that is when I asked a proper brief and that is when I responded to state that the project was above board having been awarded following procurement laws.

“When I asked for brief after taking office in May, I was brought the Hazina and Nairobi Central Business projects. I suspended the Hazina project after issues were raised,” he said.

Mr Kambi was hard-pressed to explain where he derived the power to suspend the Tassia II and III infrastructure projects which had been awarded competitively.

“I may not have the power under law but I used Section 70 of the NSSF Act to suspend the project so that the board can have a second chance to look at the whole project. I acted in the greater public good,” Mr Kambi said.

He said there is a valid contract on the project which complicates things following the cancellation of the development plans awarded to China Jiangxi Company.