Raila appeals to ministry to stop auction of Nock Plaza
Construction of NOCK Plaza on Longonot Road in Upper Hill, Nairobi has stalled . PHOTO | DENNIS ONSONGO | NATION MEDIA GROUP
What you need to know:
Mr Tergat said that his team, which took over at Nock 15 months ago, has tried to rescue the project, which stalled three years ago, but in vain.
The building was estimated to cost Sh1.2 billion. Sidian Bank put in Sh400 million as the first instalment of a loan package of Sh800 million.
Nock was to provide the remaining Sh400 million but failed to do so. The construction stopped because Sidian declined to put in its second instalment.
Orange Democratic Movement Party leader Raila Odinga wants the government to stop the planned auctioning of the National Olympic Committee of Kenya (Nock) Plaza, whose construction has stalled.
Mr Odinga expressed concern about the plan to auction the building in Nairobi’s Upper Hill over monies owed to Sidian Bank.
AUCTION
He said despite efforts by the government and the Nock leadership to find a way out, the building remains advertised for auction on April 5, 2019.
“I appeal to the Ministry of Sports to take hold of the Nock Plaza and put a caveat on its intended auction until all options are explored and a solution that is in the best interest of the bank, taxpayers, the sports fraternity and the nation is arrived at,” said Mr Odinga in a press statement released by his spokesman, Mr Dennis Onyango.
The ODM leader also appealed to the Sports Ministry to investigate how Nock found itself in its current position with regard to the construction of its headquarters.
“Appropriate action must be taken in case of any improprieties,” he said. Sidian, the project’s main financier, has advertised the auctioning of the building in the Daily Nation of March 18 and March 25, 2019, after Nock failed to rescue the stalled construction of its Sh1.2 billion headquarters.
Nock President Paul Tergat has since appealed to President Uhuru Kenyatta to help his team save the building.
“This is a public property that will help sports federations in Kenya and it will be a tragedy if we lose it cheaply,” said Mr Tergat last Tuesday. “We have reached a point where only President Uhuru Kenyatta can help rescue the project by helping offset the loan, and funding its completion.”
INSTALMENT
Mr Tergat said that his team, which took over at Nock 15 months ago, has tried to rescue the project, which stalled three years ago, but in vain.
The building was estimated to cost Sh1.2 billion. Sidian Bank put in Sh400 million as the first instalment of a loan package of Sh800 million. Nock was to provide the remaining Sh400 million but failed to do so. The construction stopped because Sidian declined to put in its second instalment.
Nock took the loan from Sidian Bank in 2011, and construction of the building started the same year, only to stall in 2016.
In September last year, Nock formed a Building and Property Committee headed by Kenya Volleyball Federation president Waithaka Kioni to try and rescue the building.
Several proposals had been made including the government’s bail-out plan, but Tergat disclosed that prospective buyers didn’t make good offers.
When complete, the building is meant to host an Olympics Museum, offices for Nock’s affiliates and those of the Ministry of Sports.
