By EDWIN MUTAI, emutai@ke.nationmedia.com
In Summary
- Mr Francis Atwoli has for the second time snubbed a parliamentary invitation to testify over corruption allegations at NSSF.
- The Cotu secretary-general, who has claimed a possible Sh100 billion loss in one deal, wrote to say he was unavailable.
- The committee is investigating how NSSF entered into tenders with Chinese firms has invited him to appear on May 14 this year.
Central Organisation of Trade Unions (Cotu)
secretary-general Francis Atwoli has for the second time snubbed a
parliamentary invitation to testify over corruption allegations at
National Social Security Fund (NSSF).
Mr Atwoli was scheduled to appear before
the committee Tuesday evening but failed to honour the invitation to
shed light on allegations he made touching on the tendering of mega
projects by the public pension provider.
The Public Investments Committee
(PIC) had invited Mr Atwoli, who has been on the forefront in blowing
the whistle on alleged malpractices by NSSF.
“We expected to meet with the
Cotu Secretary-General this afternoon, but he has written saying he will
not be available,” said Adan Keynan, who chairs the committee. “We have
given him another date… on Thursday May 14, 2015.”
The committee is investigating
how NSSF entered into tenders with Chinese firms for the construction of
three multi-billion shilling projects — one in Mavoko, on Nairobi’s
outskirts, and two in the central business district.
COTU and the Federation of Kenya
Employers (FKE) opposed the Sh5 billion Tassia II infrastructure upgrade
project awarded to China Jiangxi.
Mr Atwoli and FKE CEO Jacqueline
Mugo said the expenditure for Tassia II was not sanctioned by the NSSF
Board, where both are represented.
Last October, NSSF advertised for
construction work at the plots it sold to residents of Tassia estate in
2003. The tender was for the construction of roads, electrical
installations and sewerage and plumbing works.
Two weeks ago, PIC put acting
managers of NSSF to task to explain how pensioners stand to benefit from
its projects in Mavoko, Machakos County, and at Kenyatta Avenue and the
Hazina Trade Centre on Monrovia street.
Acting managing trustee Anthony
Omerikwa failed to provide estimates of expected returns on investments
in the 1,010-acre proposed development of housing units in Mavoko, and
the proposed development of a multi-story business complex on NSSF’s 3.6
acre plot on Nairobi’s Kenyatta Avenue.
The management could also not
explain cost estimates for the projects. Equally the managing trustee
was hard-pressed to explain how China Jiangxi International Ltd won the
tender for the development of Hazina Trade Centre in the second bid when
it had been disqualified in the first one.
The MPs also questioned how NSSF
allowed Jiangxi to adjust the cost of the bid by Sh115 million during
the technical evaluation that saw only two companies compete for the
Sh6.7 billion tender.
China National Aero Technology
had bid Sh6.74 billion while Jiangxi, after adjustment, won the tender
at Sh6.72 billion from Sh6.6 billion. PIC expressed concern NSSF could
lose billions in the Mavoko project alone.
“We have information that NSSF
stands to lose up to Sh100 billion in the Mavoko joint venture for the
development of 60,000 housing units,” Mr Keynan told the managers when
they appeared before them for grilling. “None other than Cotu
secretary-general Francis Atwoli has written to us and this has been
corroborated by stories published in two leading newspapers.”
In the Mavoko investment plan,
the NSSF acting managing trustee only indicated that the fund will put
in Sh2.7 billion, being the total value of the 1,010 acres. A valuation
by Crystal Valuers done in 2012, however, indicates the total value of
the Mavoko land stood at Sh3.4 billion.
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