Union boss skips date with House on fraud at NSSF

 

Mr Anthony Omerikwa when he appeared before the Public Investments Committee in Nairobi on April 22, 2015. Acting NSSF Managing Trustee Anthony Omerikwa was hard-pressed to explain how tenders were awarded when he appeared before the Public Investments Committee to shed light on three massive projects the fund is undertaking. PHOTO | EVANS HABIL | NATION MEDIA GROUP 

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.