Pensioners are on the verge of losing Sh6.8 billion accrued from the delayed works of Hazina Towers, a project undertaken by the National Social Security Fund (NSSF).
The amount brings the total cost of the project to Sh13.5 billion, which has since been scaled down to 15 floors from the initial 36. Public Investment Committee (PIC) members led by the chairperson Abdulswamad Nassir (pictured), who toured the site yesterday, were shocked when the contractor said the cost of the project had gone up by Sh6.8 billion.
In a claim, as per May 31, 2017, NSSF is being charged by the contractor, China Jiangxi, Sh1.6 million per week on preliminaries, Sh8.6 million on head office overhead and Sh9.7 million for idle plants at the site bringing the figure to Sh20 million per week.
Based on extension of time (EoT) of the 94 weeks the project has stalled, the provisional claim due to the delays stands at Sh1.89 billion.
The contractor says in his evaluation for the day rate of the idle plants and equipment, he will be entitled for the cost derived from among other areas loss of profit generated from hiring the equipment.
When he appeared before the committee last week, Acting executive officer Anthony Omerikwa said construction works had stalled after one of the tenants, Nakumatt Limited took the fund to court.
He told the committee that the Fund had paid the contractor Sh2.5 billion including Sh672 million as a secured advance payment out of which Sh204 million has already been recovered. The committee wants the Fund management to produce the revised contract terms and the period under which it intends to complete the project.