Mr Kazungu Kambi, the Labour Cabinet Secretary. FILE
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Labour secretary Kazungu Kambi said the six board members had cleared more than five projects through closed circulation.
The projects included the Sh3.85 billion sale of 104 executive apartments at Nairobi’s Milimani area in August 2013 and the Sh3.6 billion Nyayo Estate Embakasi housing project.
Mr Kambi said the board had approved the Voluntary Early Retirement Package for NSSF staff which was circulated by former managing Trustee Tom Odongo on February 2013.
The National Social Security Fund (NSSF) board routinely approves projects worth billions of shillings through emails.
Labour secretary Kazungu Kambi said the six board members had cleared more than five projects through closed circulation.
The projects included the Sh3.85 billion sale of 104 executive apartments at Nairobi’s Milimani area in August 2013 and the Sh3.6 billion Nyayo Estate Embakasi housing project.
Mr Kambi said the board had approved the Voluntary Early Retirement Package for NSSF staff which was circulated by former managing Trustee Tom Odongo on February 2013.
“There are so many email approvals going back to the time of Tom Odongo, Alex Kazongo and Naftali Mogere. There is one circulated by Mr Odongo for a project worth Sh420 million,” the minister said as he tabled documents of five projects that the board had approved via email.
Mr Kambi told the departmental committee on Labour and Social Welfare that all trustees, including the Central Organisation of Trade Unions (Cotu), had approved the projects through emails.
The committee is investigating the controversial Sh5.053 billion infrastructure upgrade for Tassia II and III housing schemes, which was approved by five members through closed circulation.
On New Year’s Eve Cotu secretary-general Francis Atwoli, who did not endorse the project, accused the board of approving the upgrade “illegally.”
The project was awarded to China Jiangxi on the same day the approvals were made.
Mr Kambi said regulations signed by former Labour minister John Munyes pursuant to section 8 of the repealed NSSF Act empower the board of trustees to develop rules to govern the transaction of its business included closed circulation.
“Once the closed circulation is approved, there is no ratification needed thereafter by the board of trustees,” Mr Kambi said.
The committee questioned the use of emails to approve mega projects and demanded to know why the board could not meet to pass resolutions with huge financial implications.
Mr Kambi said changes in the law would be required to direct that “all approvals are done through physical presence of board of trustees.”
However, MPs Gladys Wanga (Homa Bay) and Tiaya Galgalo (Isiolo) said the use of technology should not be outlawed.
“The world has moved on technologically and approvals can even be sought through Skype,” said Wanga.
Mr Kambi termed the 5,500 owners of plots in Tassia II and III as “land grabbers” who had no title deeds, saying the sale agreement warned them of escalation of plot costs.
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