MPs to audit NSSF investments since 2008

Public Investments Committee chairman Adan Keynan (left) and the committee’s vice-chairman, Mr Kimani Ichung’wa, during a past sitting. Parliament says it will interrogate investment decisions made by NSSF since 2008. FILE

By EDWIN MUTAI
IN SUMMARY
PIC chairman Adan Keynan said the investigation was necessary following the controversial approval of the Sh5 billion Tassia II and III infrastructure upgrade.
He said the investigations would ascertain whether the decisions were prudent or not.
NSSF has been on the spot since New Year’s eve when Cotu Secretary-General Francis Atwoli accused the board of trustees of irregularly approving Sh5.03 billion for the utility upgrade through e-mails.

MPs to audit NSSF investments since 2008
A parliamentary committee plans to scrutinise investment decisions made by the National Social Security Fund (NSSF) from 2008.

Public Investments Committee chairman Adan Keynan said the investigation was necessary following the controversial approval of the Sh5 billion Tassia II and III infrastructure upgrade, which has split the NSSF board.

“NSSF being a critical organisation that deals with different aspects of investment of public funds, we are obligated as a committee to interrogate all investment decisions that they have made so far,” Mr Keynan said.

He said the investigations would ascertain whether the decisions were prudent or not.

On the Tassia II and III project, Mr Keynan said Auditor-General Edward Ouko would be involved to determine who between the Central Organisation of Trade Unions (Cotu) and the Federation of Kenya Employers on the one hand and NSSF board members, on the other, was telling the truth.

“In the next few days, we are going to embark on the NSSF matter because Kenyans have a right to know if they got value for money from the investments,” Mr Keynan said.

NSSF has been on the spot since New Year’s eve when Cotu Secretary-General Francis Atwoli accused the board of trustees of irregularly approving Sh5.03 billion for the utility upgrade through e-mails.

READ: FKE boss denounces email approving Tassia upgrade

The Board of Trustees chairman, Adan Mohamed, who appeared before the Parliamentary Labour and Social Welfare Committee a week ago , said the online approvals were intended to beat the 90-day validity period for bids.

He said the voting by circulation, rather than a board meeting and other forms of electronic approval were allowed under Section 23 of the Kenya Communications Act.

The board members, with the exception of Mr Atwoli, voted to increase the project’s cost from Sh4.5 billion to Sh5.053 billion. FKE, however, endorsed the variation on condition that it did not “pose additional cost to the fund.”

Mr Mohamed said the increase was meant to accommodate other costs that arose following a two-year delay in tendering.

The tender was awarded to China Jiangxi International Kenya Limited on the same day the approval was given.

The project involves infrastructure development and regularisation of 792 plots that were disposed of as unsurveyed and unplanned parcels.

NSSF said 5,500 owners of the plots in the tenant purchase scheme would be required to meet the extra cost of Sh920,000 per plot compared to the initial cost of Sh315,000.

Mr Mohamed said the tenants had up to July this year to pay the money.

The project, which was conceived in 2004 and commissioned in 2010 was put up for disposal in 2011 after illegal settlers moved in.