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] |
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.
Linturi further noted since this matter had been concluded by court and payments made, the committee had now summoned the board to shed more light (on the transaction(s).
"We don’t want to play politics in this matter. We as committee are only interested in facts out of which we are going to make a decision and write a report which will be made public," Linturi added.
But his Public Accounts Committee counterpart Dr Bonny Khalwale said money paid to Jirongo came out of public coffers and Parliament needed to investigate and tell the public whether the payments were clean.
Khalwale said the fact that the matter had been decided through arbitration couldn’t be justified because there was several law firms which pitch tent in the court corridors pushing for their matters to be settled out of court.
candidate’s integrity
He argued it was also in Mr Jirongo’s interest to be investigated and the public told the truth since he was a presidential candidate and the matter of his integrity would come into question.
Labour and Social Welfare Committee Chairman Mr Charles Keter raised concerns that Isahakia’s letter was tantamount to interference with the running of parastatals, in this case NSSF. "The contract for Kazongo is coming to an end. The board in its wisdom made a decision not to renew his contract. The PM has no powers to extend the contract or order his reinstatement," Keter said.
"NSSF has had a bad history. What is wrong for a board to want to do things transparently? Even if payments have been made, we don’t want NSSF to go back to those days when it did what it wanted without explaining to the public," the Belgut MP added.
Keter revealed the parliamentary committee has also summoned NSSF management to appear before it on Wednesday to explain the payments and its role in the recent East African Portland Cement saga. "You notice that Kazongo was involved in the matter at EAPC and yet he is the same guy the PM’s office wants at NSSF,’’ said Keter.
He added: "The acting trustee Tom Odongo was very honest when he appeared before us last month to explain NSSF’s involvement in the Portland saga. To paint him in bad light even when he is not responsible for releasing those payments is not proper," Keter argued.
Isahakia in his letter wants the authenticity, legal and commercial basis payments made to Mugoya Construction and Engineering Company Limited, and S K Jirongo/Sololo Outlets and Pan African Builders and Contractors investigated.
"The Office of the PM is alarmed by the recent adverse media reports regarding operations of the NSSF. I write to inform you that, in view of the foregoing, EMU has been directed to investigate and report the circumstances leading to the loss and efforts by the Fund for the recovery of Sh1.4 billion placed with Discount Securities," Isahakia said in a letter addressed to the PS Labour, Ms Beatrice Kituyi.
employment contract
He went on: "I write to inform you that the EMU has been directed to investigate and report on matters with regard to the operations of the Fund. EMU has been directed to complete their audit within 21 days (from April 2). Consequently any pending payments by the Fund to entities under enquiry should be stopped forthwith and the employment contract of the MT (Managing Trustee) should not be terminated until completion of the audit exercise."
Reacting to Dr Isahakia’s letter, the chairman of NSSF’s Board of Trustees Dr Adan Mohammed said the whole saga emanated from their decision not to renew Kazongo’s contract.
"No one has inquired from us why we did not renew Kazongo’s contract. Not even the PM’s office has had the courtesy to find out. All we are witnessing is a barrage of letters and accusations through the media," he added.
Mohamed said the Board in its wisdom took a decision not to renew his contract and the position still stands.
On the issue as to payments, Mohammed said: "Our records shows that the payments to contractors that the PM’s office is referring to were authorised by Kazongo. To ask us to reinstate him to allow EMU to carry out an audit not only sounds suspicious but an abuse of the hiring and firing process of State corporation chiefs," he said.
Turkana Central MP Ekwe Ethuro said Parliament was concerned that there were several out-of-court payments that were being made out and considering that this was an election year, "there was more than meets the eye."
Imenti Central MP Gitobu imanyara said Attorney General should either appeal against the decision by the courts or bring legislation to change the law on matters where public interest was concerned.
Imanyara said as things stand now the matter had been decided through arbitration which involves a contract and that it would be tricky on how parliament deals with the mater.
"Parliament can indeed audit the fund but it has very limited role unless it expresses its outrage over the mater," he added.
