MPs query NSSF tender awards

A view of Tassia, Nairobi. PHOTO | DENISH OCHIENG | FILE  NATION MEDIA GROUP

In Summary

• The Parliamentary watchdog wants the EAAC to investigate why a majority of the NSSF projects were awarded to China Jiangxi International
• PIC in its sittings had observed that NSSF has lost more than Sh500 million through variation of bid prices in multi-billion-shilling contracts awarded to the Chinese firm in the past five years

By CAROLINE WAFULA
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The Public Investments Committee wants the Ethics and Anti-Corruption Commission (EACC) to investigate all major controversial projects undertaken by the National Social Security Fund (NSSF).

The Parliamentary watchdog also wants the anti-graft agency to investigate why a majority of the NSSF projects were awarded to China Jiangxi International (Kenya).

In a report tabled in Parliament on Wednesday evening by its chairman Mr Adan Keynan, PIC says the awarding of most contracts to the Chinese firm raises concerns over possible collusion.

This, the committee says, would be in breach of Section 42 of the Public Procurement and Disposal Act.

The report was based on the committee’s investigations into the procurement and financing of the NSSF Tassia II Infrastructure Development Project in Eastlands, Nairobi, whose cost was put at Sh4.6 billion by the Fund’s Technical Evaluation Committee. (READ: Agency wants NSSF Sh5bn tender probed)

LOST SH500 MILLION

China Jiangxi International (K) Ltd, a construction and engineering firm, was awarded the contract which it was to complete in two years. The construction works include putting up access roads within the plots.

The Chinese firm also won a NSSF tender to develop a shopping mall at the site where Nakumatt Lifestyle outlet stands
.

A local firm, Cementers Ltd, had initially won the tender in a procurement process which was later faulted as irregular, occasioning a review that handed the project to the foreign firm.

PIC in its sittings had observed that NSSF has lost more than Sh500 million through variation of bid prices in multi-billion-shilling contracts awarded to the Chinese firm in the past five years.

The firm has been awarded at least five real estate development contracts in the recent past.

In its investigation on the Tassia project, the committee questioned Acting NSSF Managing Trustee Richard Langat, Central Organisation of Trade Unions Secretary General Francis Atwoli, Federation of Kenya Employers (FKE) and Cabinet Secretary Labour, Social Security and Services Kazungu Kambi. (READ: Tassia plan flawed, NSSF now admits)

The scheme in question has 5,500 plots which NSSF sold in 2005 to formalise what it claimed were illegal acquisitions and allocations.

The fund’s management told the committee that the utilities in question were sold as un-serviced plots and that Nairobi City Council forced it to put up the infrastructure.

NCC gave conditions to NSSF to ensure infrastructure was properly put up before it could give it the greenlight to run the project and issue individual titles.

Mr Atwoli, the workers’ representative on the NSSF Board raised the alarm over the project saying its approval was illegal and fraudulent.