NSSF row hots up as Raila steps in

By Martin Mutua and Luke Anami

A storm is brewing in Parliament over controversial payment of Sh490 million MP Cyrus jirongo in an out-of-court settlement.

Lugari MP Cyrus Jirongo. [Photo: File/Standard]

Apart from Jirongo’s payments, the release of Sh342million to a Ugandan businessman who owned Mugoya contracts with NSSF, one of which Mugoya Construction was paid for a project that never left the ground.for thorough investigation into the payments ahead of Parliament’s reconvening next week.

But as the storm swirled around NSSF it also emerged that Prime Minister Raila Odinga’s office has written to Labour Ministry, headed by Mr John Munyes, instructing that the Fund’s Trustee Mr Alex Kazongo be reinstated.

The PM’s office also wants an audit by the Efficiency Monitoring Unit (EMU) to establish how and why the millions were paid to contractors.

The PM’s Permanent Secretary Dr Mohammed Isahakia, who gave the instructions, also wants allegations of recent improper payments to contractors totaling Sh1.4 billion for old contracts, some for which no work was carried out or projects were left incomplete, investigated.

Isahakia reports directly to the PM and the assumption in government circles usually is that in some matters as sensitive as this, Isahakia would most likely have consulted him, especially because of the heavy political overtones it bears.

At the same time, two parliamentary watchdog committees, Public Investments Committee under which NSSF falls and departmental committee on Labour and Social Welfare, has summoned the entire Fund Board to shed light on controversial payments.

Board summoned

The PIC Chairman Mr Mithika Linturi revealed he had already written to the NSSF Board to appear before the committee next week to explain how the payments were made and why.

"When we met NSSF Board last time, the matters in question were before court and, therefore, we could not discuss them as this would have amounted to sub judice," he added.

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