Labour ministry probes NSSF's Hazina Tower project

The Labour ministry is investigating the stalled construction of Hazina Trade Centre, which has led to the accumulation of fees running into billions of shillings.

Labour Cabinet Secretary Ukur Yatani said this just a day after a Chinese contractor slapped the National Social Security Fund (NSSF) – the building’s owner – with a Sh6.9 billion compensation claim for the stalled works.

Mr Yatani said his office had begun investigations into the matter and that legal action will be taken against those found culpable.

“Let me assure all Kenyans that the government will ensure that public resources are prudently managed and that administrative or legal measures will be instituted against anyone found culpable by acts of commission or omission on this particular project,” Mr Yatani said.

CONTRACT
The construction was stopped after Nakumatt supermarket, the then anchor tenant in the building, moved to court to block NSSF from adding 36 floors.

“It is important to note that this phase of the project, whose construction started on January 2014, has had numerous challenges including court cases,” the CS said.

The new figures by Jiang Xi International are above the original contract price of Sh6.7 billion.

Data that was handed to the Public Works secretary Alphonce Okweto on Wednesday shows that taxpayers are losing Sh20 million per week.

MPs learnt of the additional cost on Wednesday when they toured the site in Nairobi’s CBD.

CONSULTANTS
The data, prepared by Tana & Associates – the quantity surveyors and project managers – shows that the total claim based on extension of project time from the 94 weeks recommended by the architect stands at more than Sh1.8 billion.

The project consultants – Mrutuu Salman & Associates, Tana & Associates, Abdul Mullick & Associates and Kisa & Partners/Metroeng – have been paid a total of Sh627.9 million.

“This issue of the Sh6.9 billion was only brought to our attention on Tuesday.

"We will sit down and review it to see if indeed that is the correct amount of money that should be paid to the contractor as compensation claim,” Mr Okweto told MPs.

Officials from the Public Works ministry also said there was no need for the court case between NSSF and Nakumatt.