NSSF’s grand project stalls after EACC probe

The extension of this controversial 39-storey Hazina Trade Centre in Nairobi’s central business district has basically ground to a halt after top officials of the National Social Security Fund (NSSF) were suspended. FILE   NATION MEDIA GROUP

In Summary

• Sunday Nation has learnt that although the Chinese contractor, China Jiangxi International Ltd, has retained some of its heavy machinery on site, work has been suspended on the Sh6.5 billion project building that houses Nakumatt Lifestyle on Monrovia Street. 
• NSSF is also been embroiled in a court case with its tenant Nakumatt. The giant retailer sued NSSF and enjoined the Chinese contractor as second defendants. Nakumatt seeks to be compensated for huge losses incurred at the time of the construction.

By ANDREW TEYIE
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Construction of the controversial 39-storey Hazina Trade Centre in Nairobi’s central business district has basically ground to a halt after top officials of the National Social Security Fund (NSSF) were suspended to allow investigation into separate corruption allegations contained in the President’s so-called “List of Shame”. At the same time NSSF is pursuing a court case against Nakumatt Holdings, its key tenant in the building.   

Sunday Nation has learnt that although the Chinese contractor, China Jiangxi International Ltd, has retained some of its heavy machinery on site, work has been suspended on the Sh6.5 billion project building that houses Nakumatt Lifestyle on Monrovia Street. 

Multiple interviews with NSSF employees, workers and engineers on the site— who spoke on condition of anonymity—indicate the investigations of the NSSF officials could be affecting construction, even as it emerged that Public Procurement Oversight Authority boss Maurice Juma told the National Assembly’s Public Investment Committee the awarding of the tender was irregular.

NSSF managing trustee Richard Lang’at was among senior officials who stepped aside after President Uhuru Kenyatta tabled in Parliament a list of people to be investigated by the Ethics and Anti-corruption Commission (EACC).

“The officers who were in charge of this project at NSSF stepped aside. That is why the floors have not gone up for a while,” said an engineer on site.
NSSF Property and Development Manager Mutemi Nzatu said he was on leave and could not comment on the matter. 

But for three weeks Sunday Nation has tried in vain to get a comment from acting managing trustee Anthony Omerikwa.

NAKUMATT

NSSF is also been embroiled in a court case with its tenant Nakumatt. The giant retailer sued NSSF and enjoined the Chinese contractor as second defendants. Nakumatt seeks to be compensated for huge losses incurred at the time of the construction.

In their affidavit sworn by Mr John Ngugi the giant retailer cites safety, and health hazards and insecurity as some of the reasons.

“That there are different people of all origins from African countries, others are Chinese, Korean and or Somali origin, and there is no way or system of ascertaining whoever they are or their intentions. The individuals keep moving in and out of the suit premises carrying black and sometimes opaque containers and without any search any person could get into the premises with the wrong motives,” states the affidavit.

The NSSF affidavit is sworn by Mr Nzatu. Before Nakumatt went to court staff told Sunday Nation they seek compensation of about Sh4.7 billion for lost business and related income from tenants who have leased Hazina Trade Centre offices from Nakumatt. Nakumatt leased the premises for 20 years from 2002.

The construction of the building has been plagued by controversy for more than 10 years. In 2002, NSSF was involved in another plan to construct 32 floors at the same site.

The plan was scaled down to eight floors after NSSF lost Sh500 million in a scam that baffled Parliament’s Public Investment Committee (PIC). After it was scaled down, NSSF leased the building to Nakumatt.

During PIC proceedings in the House, the then Managing Trustee Rachel Lumbasyo argued that scaling down of the building cost NSSF Sh2.3 billion. Then, NSSF was billed to pay Sh3.1 billion for a 32-storey building that never was.