The National Social Security Fund (NSSF) was yesterday taken to task by the parliamentary Public Accounts Committee (PAC) over a series of questionable investments including the envisaged Kigamboni Satellite City project on the outskirts of Dar es Salaam.
Members of the committee questioned why, according to the Controller and Auditor General (CAG)’s report for 2014/15, the price for one plot of land associated with the project appeared to have been inflated to 800 million/- from the actual price of 25m/-.
They also took issue with the manner in which NSSF disbursed a loan of 2.4 billion/- to the Bumbuli Development Corporation SACCOS within a single year, calling on the CAG’s office to conduct a special audit on the pension fund’s loan portfolio.
“It is quite strange that just one SACCOS could be given so much money in one year, and it is not clear whether the group had repaid any earlier loans,” said PAC chairperson Naghenjwa Kaboyoka.
She ordered the CAG’s office to audit all loans issued by NSSF and help clear the doubts expressed by most of the PAC members.
According to Kaboyoka, further directives on the matter will be issued during the coming parliamentary session in accordance with the Parliamentary Standing Orders.
She ordered the CAG’s office to audit all loans issued by NSSF and help clear the doubts expressed by most of the PAC members.
According to Kaboyoka, further directives on the matter will be issued during the coming parliamentary session in accordance with the Parliamentary Standing Orders.
Committee members Tunza Malapo (Special Seats-CHADEMA) and Omar Kigua (Kilindi) questioned whether NSSF did a proper investigation to ascertain whether the Bumbuli Development Corporation SACCOS actually existed, and what criteria was used to grant loans to it three times in a single year.
Kigua said that in issuing loans to at least nine SACCOS, NSSF contravened the official loans policy which states that a single institution can’t borrow more than 50 per cent of its total worth.
According to the CAG’s report, other SACCOS that also benefited from NSSF loans - apart from Bumbuli - were Korongo Amcos SACCOS, UMMA SACCOS, SBC SACCOS Limited, Hekima SACCOS, Ukombozi SACCOS Limited, Uzinza SACCOS Limited, Harbour SACCOS, and Umoja SACCOS.
According to the CAG’s report, other SACCOS that also benefited from NSSF loans - apart from Bumbuli - were Korongo Amcos SACCOS, UMMA SACCOS, SBC SACCOS Limited, Hekima SACCOS, Ukombozi SACCOS Limited, Uzinza SACCOS Limited, Harbour SACCOS, and Umoja SACCOS.
On the Kigamboni satellite city project, PAC member Ezekiel Maige (Msalala-CCM) accused the security fund of engaging in dirty deals related to the project, including the intentional inflating of land plot prices.
Concern was also raised over the intentions of Azimio Housing Estates, said to be a partner company in the project, which has reportedly shown willingness to inject funds into the project but wants to take out a loan from NSSF.
According to Jamal Kassim Ali (Magomeni-CCM), this amounts to conflict of interest, especially as the company already gets a lot of contracts from NSSF. PAC vice chairperson Aeshi Hilaly noted that given the trend, NSSF could end up incurring a 270 billion/- loss on its investment already injected into the project.
The CAG’s report says NSSF is in a partnership contract with Hifadhi Builders Limited to develop 20,000 hectares of land, starting with 300 in the first phase. The contract says NSSF owns 45 per cent while Azimio Housing Estate owns 55 per cent of shares in the project valued at $653.44 million in total.
It was agreed that NSSF pump in funds equivalent to 45 per cent of the project value and Azimio put in 35 per cent, with the remaining 20 per cent to come from the land valuation.
But the PAC members took issue with the valuation procedure, citing hiked prices for plots of land compared to the market value.
But the PAC members took issue with the valuation procedure, citing hiked prices for plots of land compared to the market value.
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