National Social Security Fund Managing Trustee Alex Kazongo has been sacked. Photo/LIZ MUTHONI
Alex Kazongo has been sacked as the managing trustee at the National Social Security Fund (NSSF), the State-controlled retirement benefits scheme, over what the board termed as failure to meet the board’s expectations.
His dismissal follows a review of his performance during the first term done by the board of trustees which recommended that his contract, which still has two months to run, should not be renewed.
Tom Odongo, the general manager (investments), takes over at the helm of the giant retirement scheme whose assets are estimated to be worth over Sh110 billion in an acting capacity.
“Alex Kazongo has proceeded on leave pending expiry of his contract…NSSF Board of Trustees has further appointed Tom Odongo in an acting capacity,” Adan Mohammed, chairman of the board of trustees said in a statement.
Board sources said that the managing trustee scored 57 per cent marks on average in the performance review of his work since he was appointed in mid 2009.
Joseph Kinyua, the Treasury PS who is represented at the NSSF board by finance secretary Mutua Kilaka, declined to comment on Mr Kazongo’s performance.
His appointment coincided with the start of a bullish run at the local stock market which lifted the total workers’ retirement assets under NSSF’s management by a fifth to Sh98.6 billion by June 2010.
It is also under his watch that NSSF ceded the management of pension assets to six fund managers in a bid to enhance prudent decision-making in investment of member funds.
The recruitment of Old Mutual, Pine Bridge Investments, Co-op Trust Investments, ICEA, CFC Stanbic and Genesis Investments to manage 65 per cent of the Sh110 billion-worth portfolio was read as a key step in fostering social security for the members coming after NSSF lost billions in questionable investment deals.
More recently, the provident fund advertised for the disposal of two prime office blocks within Nairobi’s CBD with the expected result of locking-in capital gains and a step towards meeting the investment guidelines set by the Retirements Benefits Authority.
The planned disposal, however, ran into headwinds when the Cabinet suspended all transactions of publicly-owned assets including those belonging to quasi-government entities, till the formation of National Lands Commission as provided for in the Constitution.
Property experts estimated NSSF would earn more than Sh2.5 billion from the disposal of View Park and Hazina Towers, to significantly cut back on the fund’s exposure to investments in property that remains above the 30 per cent statutory limit.
The dramatic exit of Mr Kazongo comes in the midst of a power struggle at the East African Portland Cement Company (EAPCC), where he was a director seconded by NSSF, pitting the four directors and Lafarge on one side against the government.
Industrialisation minister Amason Kingi fired the board of directors shortly after the annual general meeting where the shareholders ratified the cement maker as a public listed company and not a State corporation.
The directors have since moved to court and temporary orders have been granted to reconstitute the board, where Mr Kazongo until yesterday was one of the plaintiffs.
It was not immediately possible to verify whether the fallout between the government and the EAPCC board of directors was linked to Mr Kazongo’s sacking but the State has in the recent past put up a strong fight claiming that the cement maker was a parastatal.
It all started in November when the board secured a legal interpretation from attorney general Githu Muigai saying the EAPCC was actually not a State corporation because the government did not own a majority stake, directly.
NSSF controls a 27 per cent stake at the cement maker while Treasury owns 25.3 per cent.
President Mwai Kibaki joined the fray last week by sacking Marl ole Karbolo through a gazette notice though the High Court has since suspended it pending determination on March 16.
