NSSF project illegal, declares House team

Attorney-General Githu Muigai (centre) with Mr Adan Keynan (left), the chairman of Parliament’s Public Investments Committee, and committee member Chris Wamalwa. The national pensions fund broke the law by authorising a controversial housing project at a city estate, a parliamentary committee has said. Photo/Jennifer Muiruri 

In Summary

• The MPs said allowing the award of the contract without assurances it would be funded was contrary to the Public Procurement and Disposal Act.
• The Kikuyu MP also noted that in her approval via email, Federation of Kenya Employers representative Jacqueline Mugo had stated that her support for the project was on condition that “it would not pose an additional cost to the fund.”

By JOHN NGIRACHU
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The national pensions fund broke the law by authorising a controversial housing project at a city estate, a parliamentary committee has said.

The Public Investments Committee said yesterday the NSSF board should not have allowed the award of the contract to put up infrastructure in Tassia estate unless the plot owners paid all the required funds.

The MPs said allowing the award of the contract without assurances it would be funded was contrary to the Public Procurement and Disposal Act.

Both the NSSF management and Labour Cabinet Secretary Kambi Kazungu have argued that the 5,500 plot owners at Tassia II, and not the fund, were to pay for the Sh5 billion infrastructure project.

But PIC chairman Adan Keynan and his deputy, Mr Kimani Ichung’wa, argued the board should have ensured plot owners paid first so that NSSF did not lose any money if they defaulted on payment.

“We have been told it’s the 5,500 plot owners who will cater for the entire Sh5 billion that will be spent on this project. My concern is that the fund has already awarded this job to a contractor without having first agreed with the plot owners as to how this will be raised,” said Mr Ichung’wa.

The Kikuyu MP also noted that in her approval via email, Federation of Kenya Employers representative Jacqueline Mugo had stated that her support for the project was on condition that “it would not pose an additional cost to the fund.”

Mr Keynan argued that without the cash in the bank from the plot owners, NSSF stood to lose money in case they defaulted on payment.

“Which one would have come first, collection from the plot owners or tendering? The right procedure would have been that you collect the money and once you have the money, you then tender. It’s common sense,” said Mr Keynan.

PIC has questioned the speed with which the project was being implemented given the fund is yet to receive Sh7oo million of the Sh2.5 billion it had sold the land.

Cornelly Serem (Aldai, URP) was also concerned that two of the recent largest NSSF projects- the completion of Hazina Towers to 36 stories and the Tassia project- went to China Jiangxi International Kenya Ltd