Massive Chinese Construction Blunder: Ksh4 Billion Vanishes, 21 Floors NSSF Building Unfinished!
On Wednesday, April 17, the National Assembly probed an incident involving a Chinese contractor who built a 15-story building instead of the originally contracted 36-story structure.
This irregularity came to light while examining the financial records of the National Social Security Fund for the fiscal years 2019/20 and 2020/21.
The Public Investments Committee on Social Services called upon the contractor to clarify the discrepancy before Parliament.
“Among the pressing issues discussed was the discrepancy in the construction of the Hazina Trade Center in Nairobi Central Business District (CBD), originally planned for 36 floors but reduced to 15 floors, despite an initial upfront payment of approximately Ksh4 billion,” the Committee released a statement.
Emmanuel Wangwe, a Member of Parliament from Navakholo, headed the Committee.
In the 2020/2021 fiscal period, financial records from NSSF indicate that a singular project reimbursement totaling Ksh871 million was disbursed for the Hazina Trade Centre.
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This sum constituted a portion of the billions disbursed to the Chinese contractor in charge of managing the project.
Altogether, the NSSF projected the entire project to require Ksh4.2 billion, of which Ksh3.2 billion was disbursed in 2020.
On why the building was cut to 15 floors, NSSF in its financial statements stated, “The project entailed the elevation of the existing building into a 36-floor tower. The project was later scaled down to 15 floors at a reduced contract sum of Ksh4 billion out of an original contract price of Ksh6 billion.”
According to their statement, NSSF decreased the building’s size by 58 percent from the initial contract, yet they only lowered the cost by 39 percent.
NSSF justified the project by stating that having 36 floors would have required tenants to seek parking elsewhere.
Despite investing billions in the project, the NSSF was said to be unable to recover the funds through rental income.
For instance, a medical school situated in both Hazina Trade Centre and View Park Towers (both owned by NSSF) provided counterfeit bank receipts amounting to Ksh.9 million, falsely claiming these were payments made for rent.
Massive Chinese Construction Blunder: Ksh4 Billion Vanishes, 21 Floors NSSF Building Unfinished!
