The Director of China Jiangxi International Limited Kenya was unable to account for money paid for the construction of Hazina Towers, a brainchild of the National Social Security Fund (NSSF).
While appearing before the Public Investments Committee on Social Services Administration and Agriculture, the Chinese national, Jimmy Ji, was put on the spot to explain why the project was downsized from 36 to 15 floors.
Further, the committee questioned why the company received a substantial upfront payment of approximately Ksh4 billion and still scaled down the project to 15 floors.
Members of the committee questioned the company’s involvement to seek clarification on whether it acted as a channel for embezzlement by public officials.
“Is your organization being used as a conduit to loot money by public officials, “Committee Chairperson Hon. Emanuel Wangwe questioned.
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Other Questions Raised by the Committee
Additionally, the committee raised concerns over the company’s refusal to pay NSSF the project mobilization fees totaling Ksh215,540,774.
In his reply to the Committee, the Chinese stated that repayment would depend on the final settlement of the project account, which included completed work, contractual claims, and incurred expenses.
At the same time, Jimmy Ji was asked questions regarding construction projects including Nyayo and Embakasi Phase IV which the contractor was also involved in.
However, the session ended abruptly as Jimmy Ji was unable to respond to the questions asked.
“Jiangxi International Limited Kenya’s inability to provide satisfactory responses led to the premature adjournment of the session,” a statement from the committee read in part.
The Hazina Trade Tower project, commissioned in 2013, has faced controversy from its inception, with accusations of favoritism toward Chinese firms over local companies.
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Concerns Raised Over the Chinese Construction Project
The Hazina commercial hub on the Moktar Daddah Street in Nairobi’s Central Business District (CBD) has been the subject of a probe by the Public Investments Committee (PIC) over the potential misappropriation of public funds.
The construction was extended beyond the original completion date in 2016 because of various challenges including financial constraints and legal disputes.
For instance, Nakumatt Holdings, which is now defunct, filed a lawsuit claiming that the construction works deterred its customers. In a turn of events, NSSF later evicted the retailer for failing to pay its overdue rent.
The building was officially opened in 2021, and advertisements made for letting.
Another government project with similar predicaments is the Bunge Towers. Nandi Senator Samson Cherargei has questioned its prolonged construction which has taken 14 years, and why its budget was revised upwards to Ksh7.1 billion.
In the end, it led to increased interest due to delayed payments and other unspecified variations causing the total cost of construction to sum up to Ksh9.6 billion.
