Taxpayer risks losing over Ksh 6.8 billion through a controversial contract awarded for a stalled project by the National Social Security Fund (NSSF).
The NSSF board is on the spot for authorizing the contractors of the stalled Hazina Towers project to remain on site despite the contract elapsing.
The contractor who was supposed to build a 15 storey building in Nairobi’s Central Business District city center is claiming over Ksh 6.8 billion for damages of unused equipment that have been at site for more than two years.
The amount is in addition to the Ksh 2.5 billion that has already been paid.
National Assembly’s public investment committee summoned the NSSF board of trustees to explain how and why the contractor of the Ksh 5 billion Hazina Towers project was still on site despite the contract elapsing.
The board was also put to task to explain why NSSF sought private consultancy on the project and paid over Ksh 1.2 billion to the private consultant instead of getting services from the department of public works.
In their defense the NSSF board of trustees said the building contract allowed extension of period of implementation in case of circumstances beyond control.
The board was however at pains to convince MPs why variations were introduced when the contract had been signed that included reduction of building from 36 floors to 15 floors.
But the corruption at NSSF was further exposed by Labour Cabinet Secretary Ukur Yattani who admitted before the committee that over Ksh 3 billion had already been paid by NSSF to the contractor who had only built a podium and four basements of the building.
The Cabinet Secretary has now instructed the NSSF management to seek legal assistance from the Attorney General on how to deal with the contractor’s demand of Ksh 6.8 billion that is increasing by day.