Pensions fund boss grilled over tender awards
What you need to know:
- Acting 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.
- During the grilling, the parliamentary group raised concerns about why all members of the board are acting, and yet they are expected to manage the Sh132 billion pension fund on behalf of the public.
- The Mavoko Joint Venture to construct thousands of housing units, was also found to be shrouded in secrecy with the Managing Trustee unaware how much returns the NSSF was supposed to get for members.
Cases of procurement irregularities running into billions of shillings at the NSSF were revealed on Wednesday.
Acting 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.
The tenders are for the Sh7 billion construction of Hazina Towers, development of 60,000 housing units at Mavoko in Machakos, and the planned development of a 3.6 acre plot on Kenyatta Avenue in Nairobi.
During the grilling, the parliamentary group raised concerns about why all members of the board are acting, and yet they are expected to manage the Sh132 billion pension fund on behalf of the public.
Committee chairman Aden Keynan questioned Mr Omerikwa on how Chinese firm Jianxin International won the tender for the construction of the Hazina Towers, despite failing in the first round, and overstating its budget by Sh115 million.
“This company appears to be at the centre of major NSSF projects and we wonder whether it an extension of the national pensioner,” he said.
The tender evaluation committee reportedly informed Jianxin International that it had overstated its budget by Sh115 million, and that it should revise the amount so as to win the tender.
The committee heard that despite the Chinese firm failing to revise downwards Sh6.7 billion it bided for, the company won the tender.
Committee member Kiminini MP Chris Wamalwa also questioned why only two firms out of the seven that were shortlisted were allowed to go to the financial evaluation stage.
The Mavoko Joint Venture to construct thousands of housing units, was also found to be shrouded in secrecy with the Managing Trustee unaware how much returns the NSSF was supposed to get for members. It was not clear how much the pensioner would get in return for offering its land valued at Sh3.4 billion.
Mr Keynan said PIC had information that the fund planned to pay more in cash besides offering its land to a private developer, with the project projected to cost it over Sh130 billion.
“Central Organisation of Trade Unions Secretary-General Francis Atwoli and the media have reported that it would cost the fund over Sh130 billion for the project. They could not have said so without solid evidence,” he said.
Mr Keynan lauded the move by acting Cabinet Secretary for Labour Raychel Omamo to place a moratorium on the Mavoko project, following allegations of irregularities.
It also emerged that the national pensioner had also planned restricted tendering to only 15 firms for the construction of a mixed urban commercial complex along Kenyatta Avenue, with the NSSF officials are in the dark about the befits.
