I’m powerless on Tassia project, says Labour Cabinet Secretary Kazungu Kambi

By PAUL WAFULA

Kenya: Labour Cabinet Secretary Kazungu Kambi has admitted that he lacks powers to suspend the controversial Tassia II housing project but claims taxpayers will lose Sh5 billion if the deal is cancelled.

Yesterday, Mr Kambi credited the Central Organisation of Trade Unions (Cotu) Secretary General Francis Atwoli for alerting him to concerns over the manner in which the tender for the project was awarded, but labeled the current plot owners “squatters”.

Kambi, who was accompanied by Labour Principal Secretary Ali Ismael, told the National Assembly’s Labour and Social Welfare Committee that he was initially in the dark on the Tassia II project, until Mr Atwoli came out on the matter publicly.

“This issue started as a drop of blood in the Indian Ocean, but now it looks like an ocean if not a sea,” he said in reference to how the significance of the controversy surrounding the award of the Tassia contract to the Chinese firm has been since Atwoli lifted the lid on the project.

Kambi said he immediately asked to be briefed on Tassia II after Atwoli raised the alarm.

“I was only briefed about the Hazina Towers project and the Nairobi Central Business project. Most of my time in the ministry in the first three months since I took over office was consumed by the teachers’ strike. But I suspended the Hazina Towers project once I looked at the brief,” the CS said.

But Kambi appeared to contradict himself when he defended his move to “suspend” the project to protect National Social Security Fund (NSSF) contributors’ money; even while admitting he lacked the powers to issue such a directive.

He then claimed NSSF would lose up to Sh5 billion of contributors money if the contract was cancelled given that the pension body had already awarded the contract to China Jiangxi International Limited, the Chinese firm that won the contract. 

In the last one year alone, the firm has won more two other huge NSSF tenders including those for the Hazina Trade Centre and Nyayo Embakasi estate, both in Nairobi.

“Legally, I don’t have any powers to suspend it or cancel any other tender which has been properly procured. But the government takes the greatest responsibility in case money is lost. I suspended it to allow the NSSF board to have a meeting and iron out the issues surrounding its approval,” Kambi told the committee chaired by Matungu MP David Were. 

But the MPs were not convinced this would change anything saying that the award has gone to the Chinese contractor and the board has no powers to stop the project at this stage.

But the greatest puzzle was why the board rushed to approve the project without all members being present.

Squatters

MPs also wanted to know what would happen if the owners of the plots refused to pay the extra cost.

“If I can be allowed, I would chase all these people occupying the land because they are squatters, and sell it at market rates.

“NSSF still has the title deed of this project. I found this mess and I want to be given time to clear it,” Kambi said.

But the committee dismissed this suggestion saying it would open a legal minefield that would be difficult for the ministry to handle.

Kambi was also hard-pressed to explain why a project that had stalled was revived immediately after he was appointed Cabinet Secretary.

“We would like to know why this project, which had stalled for years, was revived immediately in your tenure,” Mr Were asked Kambi.

Kambi had alleged that Atwoli went silent at the last stages of the project, but insisted Cotu’s approval was not necessary because the board meeting, which approved the project, had quorum.

“The chairman of the board has two votes in case opinion is divided. But even on this occasion this was not necessary because there were already five members present. Though the Federation of Kenya Employers  Executive Director Jacqueline Mugo has also disowned her approval, the email correspondence remains valid,” Kambi claimed.

Another parliamentary team, the National Assembly’s Public Investment Committee has also indicated that it will start investigating all the investment decisions that NSSF has made in the recent past. Kambi continues his submissions next week.