NSSF boss put to task over Tassia project

NSSF acting Managing Trustee Richard Lang’at (right) with members of the Public Investment Committee when he appeared before the team at County Hall, Nairobi, Thursday. [PHOTO:  Boniface Okendo/STANDARD]

By ALLY JAMAH

Nairobi, Kenya: Parliament’s Public Investment Committee (PIC) has accused the board and managers of National Social Security Fund (NSSF) of violating the law in the controversial Sh5 billion Tassia project.

Appearing before the committee, NSSF acting Managing Trustee Richard Lang’at was hard-pressed to explain why the fund awarded the multi-billion shilling tender to construct access roads, sewerage and other amenities to serve Tassia’s 5,500 plot owners before collecting money from them to pay for the costs.

PIC chairman Adan Keynan said it was highly irregular for a tender to be awarded while NSSF did not have money to pay for the project. He termed this a gross violation of the Public Procurements and Disposal Act and Public Finance Management Act.

“It is common sense that before you award a tender, you must have money to pay for it. You cannot say that you will look for the money later from the plot owners. That doesn’t make sense at all,” said Keynan.

Lang’at also admitted that the tender was awarded to a Chinese firm before the consent of the plot owners was secured, a move that was termed illegal and suspicious by Kiminini MP Chris Wamalwa.

“If the plot owners default on their payments, it means that NSSF will have to use public money to pay for the construction, when the bill should be footed by the plot owners. This is not good management practice of taxpayers’ money,” he said.

But Lang’at said it was highly unlikely for the land owners to default on the payment since the transfer of title deeds from NSSF to them was tied to their paying for the infrastructural development.

Many inquiries

“We don’t foresee a situation where plot owners fail to pay because they are very interested in retaining their plots, whose value is bound to increase sharply when the service infrastructure is constructed,” he said

He added: “In fact, most of the plot owners in Tassia are very willing to pay the money. We have received very many inquiries from them confirming that at least 80 to 90 per cent of them are ready to pay for the costs.” 

The tender was advertised in October last year and awarded to China Jiangxi International (Kenya) Ltd in December last year.

Interestingly, by late last year, a large number of owners had not paid for the plots, with at least Sh700 million remaining unpaid out of the expected Sh2.5 billion.

According to the conditions set by the former Nairobi City Council and affirmed by the current County Government of Nairobi, the plot owners cannot be issued with individual titles before the area is properly serviced with roads and sewerage systems as required by the law. 

Currently, NSSF holds the joint title for the entire land.

The alleged unprocedural awarding of the tender was exposed by Central Organisation of Trade Unions Secretary General Francis Atwoli early  this month. Mr Atwoli accused  Lang’at of having connived with the board of trustees to approve the Sh5.053 billion project.