Jirongo’s new demand on Sh40 billion city estate

But the settlement was disputed by NSSF employees who have since filed a complaint with the Ethics and Anti-Corruption Commission, terming it fraudulent.

Former NSSF Managing Trustee Alex Kazongo — who is on terminal leave — had earlier dismissed claims that the award was fraudulent, saying the board wanted to resolve all pending cases.

Mr Kazongo said the Fund was facing legal claims of more than Sh18 billion and had filed counter-claims worth slightly above the figure.

The cases, some of which have been in court for more than 20 years, have left the Fund highly exposed, raising fears it could have been turned into a cashcow by politicians and their cowboy contractors as was the case in the 1980s and 1990s.

Claims and countersuits

Among the claimants is Mr James Mugoya, the Ugandan billionaire contractor, who sued the Fund over the Embakasi Housing Project.

NSSF says in its latest financial report that Mugoya is claiming Sh7.058 billion against the Fund’s counter-claim of Sh9.8 billion.

It risks losing about Sh2 billion invested in the stock market through Discount Securities, which was placed under statutory management. Top managers of the collapsed stockbroker and senior NSSF officials have since been charged with fraud.

The fund is also estimated to have lost Sh3 billion due to bad investment decisions and doubtful transactions, according to a November 2008 audit conducted by the Inspectorate of State Corporations. (READ- Agency probes NSSF over Sh2.8bn scandal)