Wednesday, February 1, 2017

Nakumatt case holding up NSSF from putting up building, MPs told

Anthony Omerikwa, NSSF Managing Trustee. PHOTO | DIANA NGILA
Anthony Omerikwa, NSSF Managing Trustee. PHOTO | DIANA NGILA 
By EDWIN MUTAI
In Summary
  • Nakumatt blocked the NSSF from building a 40-storey building on grounds that the retailer would lose business if the contractor went ahead with the works.

A case filed by Nakumatt Supermarkets has held up construction of the Hazina Trade Centre Office Tower, Parliament was told on Tuesday.
Antony Omerikwa, the National Social Security Fund (NSSF) Managing Trustee, told the National Assembly’s Public Investments Committee that judgment has been pending since July last year.
Nakumatt moved to court under a certificate of urgency to block the NSSF from building a 40-storey building on grounds that the retailer would lose business if the contractor went ahead with the works.
“We are waiting for a ruling on the issue of injunction that Nakumatt had sought. The matter is before Lady Justice Gicheru who is yet to deliver a ruling. We are still waiting since July 2016,” he said.
PIC chairman Adan Kaynan demanded to know why the NSSF management had failed to pursue the matter.
“You are waiting for a ruling on a matter under certificate on agency seven months after the case was filed? Is this what is happening under the new Constitution?” Mr Kaynan paused.
The committee is probing several investments undertaken by the NSSF including the proposed construction of Hazina Trade Centre.
Mr Olago Aluoch (Kisumu Town West) said the delay of the ruling could escalate costs of the project, considering what Nakumatt is claiming in lost business.
“This judge must be pushed and reminded that the matter is of urgency,” he said. MP Muthomi Njuki said both parties appear to be disinterested in pursuing the matter in court.
Mr Omerikwa, who was accompanied by NSSF chairman Gideon Ndambuki, told MPs that Nakumatt secured an injunction against the extension of the building which houses the supermarket chain.
He said the NSSF board had constituted an ad hoc committee that worked on how to settle the case out of court. He said the fund was to make a counter offer to Nakumatt but the court case had delayed the resolution.
“NSSF communicated its counter offer based on rent rebates on the basis of inconvenience of Nakumatt. “Nakumatt was claiming loss of business in terms of the construction interfering with their business,” he said.
Mr Omerikwa said the Public Works ministry had undertaken an expert review of the construction and confirmed that the building was capable of housing up to 40 storeys.
“Our proposal was to build 36 floors but we are now told it can go up to 40. The foundation is strong and we are not going to interfere with the pillars inside Nakumatt Supermarket,” he said.

Mr Ndambuki said the board will ensure proper utilisation of resources in the construction of the building.
The committee directed the NSSF management to file the expert opinion in court to help the judge make an informed ruling.

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