National Social Security Fund chief executive and acting managing trustee Antony Omerikwa Detectives and accountability institutions might have been compromised to overlook a corruption scandal at the National Social Security fund, where Kenyans funds are being misappropriated. Cotu had blown the lid on how top bosses at the NSSF manipulated processes to irregularly approve several projects worth more than Sh13 billion. An audit report prepared by Ernst & Young had revealed that expected returns from the NSSF’s Sh6.7 billion Hazina Towers and Sh1.6 billion Milimani executive apartments were hiked during feasibility studies to make the projects appear viable. Cotu had hired the audit firm in 2016. Ernst & Young submitted the report to Cotu on September 14 last year.
The report indicated that China Jiangxi, which was contracted for the Hazina Towers project, was allowed to submit two bids during the procurement process.
The project consultant, Tana & Associates, also misled the NSSF Board to review the building’s upgrade from 24 floors to 34 floors, the report indicated.
The firm’s bids were for Sh6.2 billion and Sh6.5 billion. The tender committee eventually settled for the higher bid, which was later hiked to Sh6.7 billion.
Ernst & Young’s report also showed that the NSSF started construction on the Sh4.6 billion Nyayo Estate phase six and Sh5.053 billion Tassia housing projects before obtaining approvals from government authorities.
The Hazina Towers, Nyayo Estate and Tassia projects have stalled owing to various changes to their original plans.