Civil Service Fraud

Disaster: NSSF Lost Sh9 Million Shares Invested In The Bankrupt And Auctioned ARM Cement Plant

Last week, this site published names of NSSF cartels that looted the funds NSE shares through their cronies in DSL, the company that was also illegally awarded the tender to buy shares worth Ksh1.2 billion. Up to date, NSSF can’t account for most of the already bought shares.

Scam Alert: NSSF Can’t Account For Sh5.6 Billion

ANOTHER dossier from the audit report by the Auditor General has revealed that Pensioners lost Sh9 million an equivalent of 2.9 million shares that NSSF bought in the now auctioned for bankruptcy Athi River Mining Cement.

Retired AG Edward Ouko said that the shares that NSSF bought were passed off as worthless shares that costed the fund Sh9 million. Senior NSSF officials were sitting on this report. This are terrible wolves at the helm of retirees funds.

The debt-ridden ARM Cement was placed under a 12-month receivership on August 17, 2018, before being auctioned by PwC after they failed to repay their debts.

Given that the ARM Cement had a debt of $190 million but sale of Kenya subsidiary yielded $50 million and Tanzania $116 million — and other assets like Rwanda are not significant — the sale price is insufficient to pay all the creditors and shareholders,” Mr George Weru, one of the administrators from PriceWaterhouseCoopers (PwC) said.

Pradeep Paunrana, the owner of now NCC-owned ARM has fallen short of his sh10billion family’s empire that also British-owned CDC company lose Sh14 billion an equivalent of 42 percent stake in ARM. All shares were acquired in April 2016 and PwC rendered all the shares worthless.

NSSF has also lost Sh534 million Chase Bank and Sh132 million Imperial Bank bonds whose  recovery is unlikely despite the provisions made for them for the last two years.

“The bonds were invested between 28 September 2015 and 6 October 2015 and were to mature between February 2022 and September 2022. The two banks were put under statutory management by CBK before maturity of the bonds. Consequently, it is not clear if and when the money invested in corporate bonds totalling Sh666.9 million will be recovered” the Auditor General said. 

The Auditor General’s report also exposed how the management of NSSF, most of them who are operating on acting capacity, that the fund is still is holding onto fixed deposit of Sh329.5 million which according to audit files, the funds are nowhere to be seen nor a document to explain how the fund used them. The fund also lost Sh170 million in Imperial Bank and Chase Bank (Sh259.5 million).

Earlier this month, NSSF had declared their Sh220Billion investment in Nairobi and Mombasa based properties alone, a move that prompted the office of Auditor-General to scrutinize the fund’s books.

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