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{
    "id": 183388,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/183388/?format=api",
    "text_counter": 154,
    "type": "speech",
    "speaker_name": "Mr. Munyes",
    "speaker_title": "The Minister for Labour",
    "speaker": {
        "id": 187,
        "legal_name": "John Kiyonga Munyes",
        "slug": "john-munyes"
    },
    "content": " Mr. Speaker, Sir, I wish to confirm that Discount Securities Ltd. (DSL) was authorised by the Board of Trustees of NSSF to trade in shares on behalf of the Fund. At the time of authorization, DSL was and continues to be a registered stock broker with the Capital Markets Authority (CMA) licensed to trade at the Nairobi Stock Exchange (NSE). The Fund gave DSL instructions to buy and sell shares between August, 2004 and August, 2007, which was within the Fund's investment policy. Later, after various transactions DSL decided to open 82 nominee accounts and refused to follow the instructions given by NSSF to open one account. A total of Kshs2.3 billion was invested. Out of this, we stand to lose Kshs1.4 billion because we have not got the share certificates. My officers have gone round and this afternoon, I have been told that we might save some of that money. The total amount we stand to lose may be Kshs967,820. Mr. Speaker, Sir, I have taken the following action:- (i) On 28th August, 2008, I sent Ms. Rachel Lumbasyo, the then Managing Trustee on compulsory leave pending retirement, to pave way for thorough investigation of the Fund. (ii) The Inspectorate of State Corporations in the Office of the Prime Minister is also in the Fund undertaking investigations. The report has come today and I will circulate it. (iii) On Thursday, 16th October, 2008, I dissolved the NSSF Board of Trustees after they failed to carry out duties as trustees in accordance with the NSSF Act, the Retirement Benefit Authority Act and Trustees Act. (iv) I approved the immediate interdiction of seven senior managers including the acting Chief Executive, to allow for thorough and exhaustive investigations into this potential loss. In the meantime, I have approved the appointment of Mr. Albert Odero to act until we undertake interviews in a fair way. I will endeavour to ensure that the new Board will be in place as soon as possible. (v) I have requested the Kenya Anti-Corruption Commission (KACC) to investigate members of the out-going Board and the Management Investment Committee Members. (vi) From the instructions of Parliament, I have gone back so that we bring to book those who have taken money from the NSSF. From the 2001 PIC Report, we lost Kshs3.2 billion. (vii) I have also taken action to write to KACC to ensure the Board, which was at that time under Managing Director Samuel Muindi be investigated for loss of Kshs3.2 billion. Mr. Speaker, Sir, in conclusion, let me ask the House to support my actions to secure the savings of hard working Kenyans."
}