NSSF on the spot over contested pay to Nairobi varsity
University of Nairobi Vice Chancellor Prof George Magoha denied that the university was paid the entire amount of Sh40.7 million by NSSF to conduct research on NSSF’s services, adding that the contract required the payments to be made in tranches. Photo/File
The National Social Security Fund (NSSF) has come under fresh scrutiny after the University of Nairobi denied receiving payment which the fund said it had released to the college for research and recruitment of new members.
The fund’s acting managing trustee Tom Odongo said Sh40.7 million had been paid to UoN to conduct research on NSSF’s services, recruit new members to the workers’ provident fund, and hire students to create awareness.
The payment was in breach of an agreement struck with the NSSF board to stagger the money based on the progress of the awareness partnership.
However, UoN Vice Chancellor George Magoha denied that the university was paid the entire amount, adding that the contract requires the payments to be made in tranches.
“My chief finance officer has confirmed to me that the money was received in instalments,” Prof Magoha told the Business Daily in a phone interview on Thursday.
“We have a very strict system in place that ensures that all the funds we are paid for research work is used as agreed.”
Documents obtained by the Business Daily show that the NSSF approved payment of Sh40,761,000 to the University of Nairobi on February 28. But Prof Magoha said he could not “vouch for the authenticity” of the document.
Mr Odongo, however, said that the copy of the payment voucher in the Business Daily’s possession was authentic adding that university authorities had expressed a desire to be fully paid before starting the assignment.
“The university could not undertake the work before receiving the money as agreed in our final contract,” said Mr Odongo.
“The exercise is on and the money is safe with the university. The university is not just some briefcase company. We will hold it accountable for every cent paid.”
Boardroom wars
The revelation has emerged at a time when NSSF is embroiled in boardroom wars, with some trustees and directors alleging that they were tricked into supporting the deal.
“The partnership was contentious from the word go. Some board members questioned the value students would bring on board that could not be achieved by NSSF employees, but they were ruled out,” said a trustee who cannot be named because he is not the fund’s spokesperson.
The NSSF board is made up of Adan Mohamed (chairman), Arthur Papa, Cleopa Mailu (CEO of Nairobi Hospital), Jackline Mugo (executive director of FKE), and Francis Atwoli (Cotu secretary-general).
Others are Joseph Kinyua (PS Treasury), Beatrice Kituyi (PS Labour), and Cornelius Nyang’un. The Business Daily has established that Ms Mugo and Mr Atwoli opposed the partnership but lost.
Under the partnership, University of Nairobi committed to carry out a countrywide campaign to recruit and register new members to the fund —which has nearly 1.2 million members.
The university’s sociology department was to carry out research on NSSF products and evaluate their suitability in the marketplace, while the students were to act as social security ambassadors of the fund.
“Any seasoned researcher will tell you that students are the best candidates to use when gathering information from different parts of the country,” Prof Magoha said.
The partnership is emerging at a moment when NSSF has been put on the spot by Parliament and the government for paying hundreds of millions of shillings to controversial Moi era contractors.
A government agency has launched investigations into questionable payment of Sh1.4 billion to three companies by the national pension fund and loss of Sh1.4 billion to Discount Securities, a stock brokerage that is under statutory management.
The Efficiency Monitoring Unit, which falls under the Office of the Prime Minister is investigating the questionable payments.
The companies paid are Mugoya Construction and Engineering Company Sh390 million, S K Jirongo/Sololo Outlets Sh490 million, and Pan African Builders and Contractors Sh590 million.
