NSSF defends approval of Sh5bn Tassia upgrade plan
National Social Security Fund House in Nairobi. Two board members have questioned the award of Sh5 billion tender for upgrade of Tassia II and III schemes. FILE
What you need to know:
Board of Trustees chairman Adan Mohamed said that the approvals were sought by e-mail to beat the 90-day validity period for bids.
Five board members took the vote to increase the project cost from the initial estimate of Sh4.5 billion to Sh5.053 billion in order to accommodate other costs that arose following a two-year delay in tendering.
Only the Central Organisation of Trade Union did not vote for the cost variation with Federation of Kenya Employers backing the proposal.
The National Social Security Fund (NSSF) has defended the method of voting used to approve the Sh5 billion Tassia II and III utility upgrade which was cancelled on Wednesday.
Board of Trustees chairman Adan Mohamed said that the approvals were sought by e-mail to beat the 90-day validity period for bids.
He told the parliamentary Committee on Labour and Social Welfare that the fund’s acting managing trustee, Richard Lang’at , opted for the voting by circulation because electronic approval is allowed under Section 23 of the Kenya Communications Act.
Five board members took the vote to increase the project cost from the initial estimate of Sh4.5 billion to Sh5.053 billion in order to accommodate other costs that arose following a two-year delay in tendering.
Only the Central Organisation of Trade Union did not vote for the cost variation with Federation of Kenya Employers backing the proposal so long as it did not “pose additional cost to the fund”.
The project, which was conceived in 2004 and commissioned in 2010 was put up for disposal in 2011 after illegal settlers moved in. The tendering process delayed until its conclusion last December.
Mr Mohamed said that the tender would have been floated afresh were it not awarded to the winning bidder - China Jiangxi International Kenya Limited by December 18, the same date the approvals were sought and the bidder notified of the award. The company had quoted Sh4.6 billion.
Cotu secretary-general Francis Atwoli and FKEchief executive Jacqueline Mugo have publicly stated that they did not approve the proposal to increase the cost of infrastructure development for the Tassia housing schemes.
Mr Mohamed, Labour PS Ali Noor Ismail, financial secretary Mutua Kilaka and Mr Lang’at gave their approvals on December 18.
Mr Mohamed clarified that the approval sought was for infrastructure development and regularisation of the 792 plots that were sold through tenants purchase scheme. The plots were disposed of as unsurveyed and unplanned parcels.
Owners of the plots will be required to meet the extra cost of Sh920,000 per plot compared to the initial cost of Sh315,000. The estate has 5,500 tenants who risk their plots being auctioned if they do not raise the money.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
