Anti-graft team asked to probe NSSF deals
Alex Kazongo. Photo/FILE
What you need to know:
- PM’s office wants Kazongo reinstated pending probe into suspicious payment
The government now wants the anti-corruption agency to investigate circumstances under which the national provident fund paid Sh662 million to a construction firm for a job that was not done.
Labour assistant minister Sospeter Ojaamong has written to the Ethics and Anti-Corruption Commission (EACC) to establish how Pan Africa Builders and Contractors Ltd was paid for the tender to build 300 houses in Nairobi’s Kitisuru suburb.
This comes amid an emerging rift between the Office of the Prime Minister and the National Social Security Fund (NSSF) over the reinstatement of former managing trustee Alex Kazongo.
On Tuesday, the board advertised Mr Kazongo’s position, disregarding a letter from the permanent secretary in the PM’s office, Dr Mohammed Isahakia, calling for his reinstatement pending investigation into the suspicious payments.
Mr Ojaamong also wants EACC to investigate why the money was paid directly to sub-contractors and why two firms, Speed Wings Ltd and Liteline Enterprises Ltd, were paid Sh121 million and Sh20 million respectively from the amount when they are not registered with the Registrar of Companies.
“The purpose of this letter is to ask your agency to immediately launch investigations to establish if any economic crimes were committed. This is particularly urgent given that Parliament ordered on March 13, 2012, that a report be tabled before it within two weeks,” Mr Ojaamong said.
EACC spokesman Nicholas Simani said he needed more time to verify the details before commenting.
Parliament’s committee on Labour and Social Welfare will today question the NSSF board and management over the transactions.
“We want them to shed light over all these payments. We want them to explain why the payments are being made to some companies that are not even registered, how they reached arbitration and why they are being made during an election year given NSSF’s past reputation as a cash cow,” said the committee’s chairman, Belgut MP Charles Keter. (READ: NSSF told to provide Sh662m pay records).
