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Daily Nation : February 21st 2014
18 | THE COUNTIES NAIROBI | Retirement benefits custodian back in the spotlight Pension fund accused of land double-dealing Developer sues NSSF for breach of contract by reselling parcel to another company in spite of agreement BY THOMAS KARIUKI @njoroge19 TKariuki@ke.nationmedia.com T he state pension fund has been accused of breach of contract in a land deal on State House Road. In papers filed in court, the Housing Corporation of East Africa accuses the National Social Security Fund (NSSF) of breaching a Sh77.3 million sale agreement and reselling the land. Housing Corporation of East Africa chairman Joseph Muthama said NSSF entered into an agreement with this firm to sell the piece of land for Sh77.3 million. “A deposit of Sh7.7 million was to be paid before execution of the agreement while Sh69.5 million would be paid within 180 days of signing the agreement,” Mr Muthama alleged. However, the firm sought an ex- tension to the time in which to pay the balance by a further 90 days and also asked to be granted partial ownership of the property, he said. “NSSF declined to grant partial possession of the land but after close scrutiny offered a deed of variation dated June 9, 2006 allowing the leasing of the land,” he said. According to Mr Muthama, NSSF agreed to extend payment to July 30, 2007, became the landlord as per the deed of variation and Housing Corporation became the assignor. A company called Housing Group Limited was leased one acre. Mr Muthama said on July 9, 2007, NSSF issued a 21-day notice for payment of the balance of the purchase price. “The said notice had no basis in fact and in law. It was premature and misconceived because the time agreed upon had not lapsed,” Mr Muthama argued. Housing Corporation claims it ARUSHA East Africa states in deal to promote tourism BY NATION REPORTER Kenya and Tanzania have agreed to end differences that have been a source of conflict in tourism activities. The two countries yester- day concluded talks in Arusha aimed at giving new life to tourism in the region. They agreed to fully imple- ment an agreement signed in 1985 that spells out how tour operators will conduct business across the borders. The two will also hold meet- ings in the coming months to update the agreement and incorporate emerging issues. On the sidelines of the meeting, Kenya and Uganda held talks to prepare grounds for a proposed meeting between them which will lead to the signing a bilateral agreement on tourism and wildlife management. Leaders of delegations from the three countries expressed the commitment of their governments to establish long lasting co-operation in the promotion of tourism and protection of wildlife. “The aim is to build a better trading environment between our countries. Some of the measures we will institute may require to be aligned to tour laws after which more agreements will follow,” Tanzania’s minister for Natural Resources and Tourism Lazaro Nyalandu, said. East African Affairs, Com- merce and Tourism Cabinet Secretary Phyllis Kandie (left) said Kenya remained fully committed to the realization of the vision of developing and marketing East African as a single destination. Uganda’s minister of State for Tourism, Wildlife and Antiquities Agnes Akiror lauded the achievement of the meeting saying it would form the basis for a more robust co-operation on tourism promotion and wildlife management. Sh77.3m Cost of the land the NSSF is accused of double dealing in ‘‘ A deposit of Sh7.7 million was to be paid before execution of the agreement while Sh69.5 million would be paid within 180 days of signing the agreement,” Housing Corporation boss Joseph Muthama paid a further Sh3 million then sought another 60 days to pay the balance of Sh66.5 million. NSSF then sent a letter to the company on August 2, 2007 extending the payment time. The Housing Corporation of East Africa then secured payment for the outstanding balance but the NSSF purported to sell and transfer the land to Housing Group Limited which, according to lawyer Njoroge Regeru was a breach of the agreement. Mr Muthama said Housing Cor- poration had secured the entire balance of the purchase price and had initiated a project to build 66 housing units on the property. He asked Justice Johnie Havelock to compel NSSF to release the title deed of the land and complete the transfer. The case will be heard on May 27 and 28. FINANCE | Youth sacco launch DAILY NATION Friday February 21, 2014 MOTHER OF THREE GETS ‘SURPRISE’ QUADRUPLETS She expected triplets, but got a fourth surprise. Page 20 ISIOLO Audit exposes millions lost in scandals BY NATION REPORTER An audit has detected financial ir- regularities that may have cost Isiolo taxpayers millions of shillings. The audit report questioned expenditure of Sh1.5 million as imprest for various county officials and payment of Sh456,000 and Sh139,500 to an unnamed officer for a “meet-the-people tour” and “sitting allowance”. The report, by Auditor-General Edward Ouko, also queried the payment of Sh1.07 million to county assembly members in sitting, travel and subsistence allowances. “The payments were not sup- ported by invitation letters, programmes of workshops attended, bus tickets or vehicle work tickets, venues and actual attendance by members,” the report said. WHAT’S ALLEGED Litany of cases Imprest: Sh1.5m irregularly paid to officials. Allowances: Sh1.07 million paid to county assembly members in sitting, travel and subsistence allowances. Procurement: A vehicle bought on June 28, 2013 is yet to be delivered despite Sh7.8 million being paid to the supplier. JOSEPH KANYI | NATION Confidence Dancers entertain guests during the launch of Nyeri County Youth Bunge Sacco yesterday. The National Youth Bunge Association in collaboration with the Cooperatives ministry and USAid have, together with the County Bunge Forums, joined up to form County Bunge saccos. The saccos encourage a saving culture among the youths so that they can generate a pool where they can borrow loans to start their businesses. Accountability: Sh361,530 motorcycle reported stolen but no report made to the police. A vehicle bought on June 28, 2013 is yet to be delivered despite Sh7.8 million being paid to the supplier. “A second vehicle, a Toyota Land Cruiser, had not been delivered at the time of audit on September 13, almost 90 days after payment, contrary to the Public Procurement and Disposal Act, 2005 which requires that payments should be made upon receipt of the goods and services,” the report said. Some vehicles owned by the county were reported not to have ownership documents while a motorcycle valued at Sh361,530 is said to have been stolen though no report was made to the police. It was also discovered that despite raising Sh60.7 million in revenue between January and June 2013, the defunct County Council of Isiolo banked Sh53.7 million. The new county government also failed to close accounts used by the county council, withdrawing Sh13 million after the Transitional Authority deadline. The report also questioned the payment of Sh790,950 medical cover despite a maximum provision for Sh200,000.
February 20th 2014
February 22nd 2014