House committee grills NSSF management over 'faulty' tender

National Social Security Fund (NSSF) is on the spot over breach of procurement law in three multi-billion projects in Nairobi and Machakos counties.
The National Assembly Public Investments Committee (PIC) has expressed disappointment following the revelations on the glaring irregularities in tenders for the construction of Sh 7billion Hazina Towers, development of 60,000 Housing units in Mavoko and ultra-modern complex at Kenyatta Avenue car park.
The committee chaired by Adan Keynan (Eldas) grilled the acting Chief Executive Officer Dr Anthony Omerikwa and acting property development manager Josephine Mutiso over what informed the decision to undertake the massive projects.
Dr Omerikwa was unable to disclose the estimated amount on the 1010 hectares of land in Mavoko and 3.6 hectare at Kenyatta Avenue.
“These two projects are joint ventures. We will know the cost of the projects after awarding the tenders. We are offering the land and the investor will fund the projects.  The Mavoko land costs Sh 3.6billion,” said Omerikwa.
Keynan faulted the CEO over this decision, saying he was being secretive with information.
“It is public knowledge and even the media has carried this story. The central Organisation of Trade Unions (Cotu) secretary General Francis Atwoli is on record that the Mavoko project is likely to cause Sh130billion,” said Keynan.
Kimani Ichungwa (Kikuyu) demanded to know from the CEO why they settled on a joint venture when they could use their own funds and get a hundred percent returns.
Keynan weighed in on the ministry of Labour and the fund management for acting contrary to the law, undertaking flawed tenders and therefore creating crisis at the Sh132 billion pension fund.
“There is no substantive management and board of trustees. We are baffled by the conduct of the managers appearing before us, all in acting capacity. This means none can make substantive decisions and this might be deliberate, “said Keynan.
He continued, “Without substantive office holders, who takes full responsibility for these flaws? We are not going to sit back and watch public investment being squandered by a few," warned Keynan.
Of particular interest to the legislators was how NSSF awarded the Hazina Towers project to China Janxi International Limited, despite detecting a Sh115million error at the technical evaluation stage.
MPs Cornelius Serem (Aldai), Mohammed Noor (Mandera North), Chris Wamalwa (Kiminini), Thomas Mwadegu (Wundanyi) and Oburu Oginga (nominated), did not mince words and expressed their displeasure with the manner the fund is managed.
“NSSF is under threat. The board is not operational, who approved the tender. Why was the Chinese company disqualified at the first bidding and awarded the tender at the second bidding. If we are not careful, this project might turn out to be a cash cow for some individuals,” Wamalwa pressed the CEO to respond.
Keynan expressed his apprehensions that the Chinese company is alleged to be an extension of NSSF and has awarded many projects.
"NSSF is undertaking major multi-billion projects. Kenyans must get their returns. There is no proof to show that the institution undertook any feasibility study at the two sites to ensure value for money," stressed Ichungwa.
He wondered, "China Janxi international Limited, which was disqualified in the first round, won the second bid, this is suspect.
The firm even refused to correct the error of Sh 115million, yet it qualified.” Dr Omerikwa however maintained that the tender process was above board and was subjected to open and competitive bidding and requested for more time to furnish the committee with the official documentations.
"Very reputable companies bided, we want to know the reason behind their disqualification and why the winning firm refused to absorb the error?" questioned Oburu.
Keynan announced that the committee will invite all firms, which bided for the Hazina project and were disqualified or did not participate in the second process to appear before it, including the traders who have petitioned for the Sh 1.62 compensation.
The committee applauded the acting Labour Cabinet Secretary Raychelle Omamo directive to put on hold all NSSF operations, payments, until the crisis is resolved.