NSSF quizzed over Sh662m payout
The anti-graft watchdog is investigating the controversial payment of Sh662 million by the national provident fund to a construction firm through an out-of-court settlement.
In a letter to the Labour ministry dated April 12, the Ethics and Anti-Corruption Commission says: “The matter has been taken up for investigation by the commission with a view to taking the necessary action.”
“We, however, invite you to share with us any other relevant information in your possession regarding the matter, including details of the companies as provided by the Registrar of Companies,” the letter adds.
The Labour ministry had written to the anti-graft agency directing it to investigate the circumstances under which Pan Africa Builders and Contractors Ltd was paid the amount in respect of a tender to build 300 housing units in Nairobi’s Kitisuru suburb.
In the letter to the commission, dated April 2, Labour assistant minister Sospeter Ojaamong asked it to establish why the Sh662 million was paid directly to each of the sub-contractors.
The agency was also asked to find out why two firms, M/s Speed Wings Ltd and Liteline Enterprises Ltd, were paid Sh121 million and Sh20 million 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 13th March 2012 that a report be tabled before it within two weeks,” Mr Ojaamong directed.
The Sh662 million is the second such payment the pensions fund has made, bringing to Sh1.4 billion the money paid since last year following arbitration. (READ- Anti-graft team asked to probe NSSF deals)
