Wednesday, January 8, 2014

NSSF draws City Hall into Sh4.6 billion tender row


 The National Social Security Fund headquarters in Nairobi. FILE

The National Social Security Fund headquarters in Nairobi. FILE   NATION
By VICTOR JUMA,
In Summary
  • NSSF acting managing trustee Richard Lang’at says the utilities were part of the conditions set by the then Nairobi City Council when it approved subdivision of the land into 5,500 plots.
  • Mr Lang’at said NSSF directors Jacqueline Mugo and Francis Atwoli — who have publicly questioned the expenditure — approved (by circulation instead of a board meeting) and did not raise objections, respectively.
  • The two have in separate statements said the project was being implemented without their knowledge.


The National Social Security Fund has rejected claims by some of its directors that the Sh4.6 billion upgrade of utilities in Tassia II estate Nairobi is fraudulent.

The fund’s acting managing trustee Richard Lang’at on Wednesday said the utilities were part of the conditions set by the then Nairobi City Council when it approved subdivision of the land into 5,500 plots.

“Development of infrastructure in the Tassia Settlement Scheme was imposed to the National Social Security Fund as the legal owner of the land through a conditional approval by the City Council of Nairobi in December 2008,” Mr Lang’at said in a statement.

Mr Lang’at said NSSF directors Jacqueline Mugo and Francis Atwoli — who have publicly questioned the expenditure — approved (by circulation instead of a board meeting) and did not raise objections, respectively.

Ms Mugo and Mr Atwoli, who represent employers and workers on the NSSF board, have in separate statements said the project was being implemented without their knowledge.

In the statement appearing in sections of the media on Thursday, Mr Lang’at said the cost of the utilities would be entirely recovered from plot owners at the rate of Sh920,000 per plot.
NSSF had in the early 2000s sold homeowners in the estate land on which they had allegedly squatted for years. The fund had collected a total of Sh1.8 billion from the land sales, and is expecting to receive the balance of Sh700 million by June.

Tassia residents have, however, suffered from poor infrastructure that has been blamed on poor planning.

The State-controlled fund advertised for construction works at the plots including roads, electrical installations, sewerage and plumbing works in October.

Mr Lang’at said the tender was awarded to China Jiangxi International (K) Ltd that had quoted the lowest figure of Sh4.6 billion on December 19 last year.

Ten firms, including H Young & Co EA Ltd which quoted Sh6.9 billion, China Wu Yi Company Ltd  (Sh5.5 billion), and China Railway Eng. Group (Sh4.7 billion) participated in the bid.
The accusations and counter accusations among NSSF management and directors is the latest demonstration of governance problems at the Sh120 billion fund.

“As far as I am aware, no board resolution has been made to form the basis of the award of a contract on this project,” Ms Mugo, who represents employers on NSSF’s board, said in a statement.
Mr Atwoli said the construction in Tassia should be done by the plot owners. NSSF has over the years los

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