Audit reveals anomalies in billions paid to Chinese firm

NSSF building in Nairobi

A contractor was paid Sh2.5 billion without the approval of the board of the National Social Security Fund, according to an audit report.

According to the audit conducted by Ernst & Young on Hazina Towers, Milimani Executive Apartments, Nyayo Estate Embakassi Phase 6, and Tassia Estate, a further Sh215 million was paid to contractors for the Nyayo Estate project.

The two payments were made to China Jiangxi International Kenya Ltd, which had been contracted by NSSF without the board's approval, the report said.

Speaking at a meeting with the National Assembly Labour and Social Committee, Central Organisation of Trade Unions Secretary General Francis Atwoli said the anomalies were due to inference.

 “I was not at the board at the time... No board approval on advance payment of measured work was done,” he said.

He said the contractors were paid 27 per cent of the contract sum against 21 per cent of the work completed for the Hazina Towers project, which is not complete.

For Hazina Towers, auditors observed that the consultant misled the board to review project design from 24 to 34 floors. This, the auditors said, led to overstating the rate of return at 11 per cent with nine years pay-back period.