National Social Security Fund House in Nairobi. Two board members have
questioned the award of Sh5 billion tender for upgrade of Tassia II and
III schemes. FILE
NATION
By EDWIN MUTAI, emutai@ke.nationmedia.com
In Summary
- Board of Trustees chairman Adan Mohamed said that the approvals were sought by e-mail to beat the 90-day validity period for bids.
- Five board members took the vote to increase the project cost from the initial estimate of Sh4.5 billion to Sh5.053 billion in order to accommodate other costs that arose following a two-year delay in tendering.
- Only the Central Organisation of Trade Union did not vote for the cost variation with Federation of Kenya Employers backing the proposal.
The National Social Security Fund (NSSF) has
defended the method of voting used to approve the Sh5 billion Tassia II
and III utility upgrade which was cancelled on Wednesday.
Board of Trustees chairman Adan Mohamed said that
the approvals were sought by e-mail to beat the 90-day validity period
for bids.
He told the parliamentary Committee on Labour and
Social Welfare that the fund’s acting managing trustee, Richard Lang’at ,
opted for the voting by circulation because electronic approval is
allowed under Section 23 of the Kenya Communications Act.
Five board members took the vote to increase the
project cost from the initial estimate of Sh4.5 billion to Sh5.053
billion in order to accommodate other costs that arose following a
two-year delay in tendering.
Only the Central Organisation of Trade Union did
not vote for the cost variation with Federation of Kenya Employers
backing the proposal so long as it did not “pose additional cost to the
fund”.
The project, which was conceived in 2004 and
commissioned in 2010 was put up for disposal in 2011 after illegal
settlers moved in. The tendering process delayed until its conclusion
last December.
Mr Mohamed said that the tender would have been
floated afresh were it not awarded to the winning bidder - China
Jiangxi International Kenya Limited by December 18, the same date the
approvals were sought and the bidder notified of the award. The company
had quoted Sh4.6 billion.
Cotu secretary-general Francis Atwoli and
FKEchief executive Jacqueline Mugo have publicly stated that they did
not approve the proposal to increase the cost of infrastructure
development for the Tassia housing schemes.
Mr Mohamed, Labour PS Ali Noor Ismail, financial secretary Mutua Kilaka and Mr Lang’at gave their approvals on December 18.
Mr Mohamed clarified that the approval sought was
for infrastructure development and regularisation of the 792 plots that
were sold through tenants purchase scheme. The plots were disposed of as
unsurveyed and unplanned parcels.
Owners of the plots will be required to meet the
extra cost of Sh920,000 per plot compared to the initial cost of
Sh315,000. The estate has 5,500 tenants who risk their plots being
auctioned if they do not raise the money.
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