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{
    "id": 188990,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/188990/?format=api",
    "text_counter": 206,
    "type": "speech",
    "speaker_name": "Mr. Munyes",
    "speaker_title": "The Minister for Labour",
    "speaker": {
        "id": 187,
        "legal_name": "John Kiyonga Munyes",
        "slug": "john-munyes"
    },
    "content": " All the above were evaluated. The highest offer of Kshs1.4 billion was not favourable to the Fund in that 10 per cent deposit was not paid. I think this is in reference to the Kenya Power and Lighting Company which had also offered to pay Kshs1.3 billion. Before the Fund entered into a sale agreement with Delta Square Limited, it offered the property to Synergy Management Group Limited for Kshs1.265 billion on 8th January, 2007. It was the highest offer at that time. However, the purchaser failed to pay even 10 per cent of the purchase price and the transaction was cancelled. On 3rd May, 2007, Libya Africa Investment Portfolio Company offered to purchase the property for Kshs1.37 billion. The sale agreement was prepared and the purchaser was offered the property. This purchaser too failed to raise the 10 per cent. In September, 2007, Kaplan and Stratton offered to pay Kshs1.4 billion for the property. This offer was not favourable to the Fund. The purchaser wanted to pay 10 per cent into escrow account whereby the interest accruing to this account was to be paid to the purchaser instead of the seller. The 10 per cent was to be paid after the completion. Further, the Fund was to release the title documents to the purchaser to enable the purchaser obtain facilitation of the bank, that was not disclosed. This was not agreeable to the Fund whose stand was 10 per cent deposit which was to be paid to the Fund directly and the balance of the purchased price to be exchanged with the completion document. On 14th December, 2007, Delta Square Limited offered to purchase the property at Kshs1.372 billion. They were willing to pay 10 per cent of the purchase directly and the balance to be exchanged with completion. This offer was favourable in that it did not have stringent conditions. On 7th July, the Fund offered the properties to Delta Square Limited for Kshs1.37 billion. This is the current purchase. In line with procurement procedures, the NSSF obtained July 17, 2008 PARLIAMENTARY DEBATES 1947 valuations of the Chief Government Valuer and Jimco Limited who returned the following valuations. The Chief Government Valuer on 19th January, Kshs1.37 billion and Jimco Limited, 14th February, 2007, Kshs1.334 billion. The Fund offered to sell the same to the company by the name Delta Square for Kshs1.37 billion. These were the only serious purchasers who were willing to put 10 per cent deposit before signing the sale agreement and indeed, they paid 10 per cent deposit on 14th December, 2007. The rationale for selling the properties was to enable NSSF comply with the requirements of the Retirements Benefits Authority (RBA) Act on real estate portfolio where the Fund's real state portfolio is 35 whereas the RBA requirement is 30 per cent. The Fund entered into a sale agreement in January, 2008, to sell the plots to Delta Square Limited for Kshs1.37 billion. A deposit of Kshs137,500,000 was paid to NSSF on signing of the agreement. The balance of Kshs1.237 billion was placed on the escrow account at CFC Bank headquarters in joint names of NSSF lawyers and purchasers advocates. The money was to be released to NSSF with the mandate to sign by the two law firms. The transaction was finalised on 16th but the lawyers of the purchaser declined to sign to release the balance of the purchase of Kshs1.237 billion. Instead the purchasers' advocate wrote to the NSSF's advocate claiming that they will only release Kshs837,39,701 and leave Kshs400 million in the escrow account on the pretext that plot LR No.209 was less by Kshs1.38 acres. The purchaser was purchasing the property as advertised in the papers at the price agreed upon in the sale agreement. In view of the refusal of the advocates to execute their mandate to release the balance of the purchase price, the Board of Trustees resolved to have the transaction rescinded immediately to protect the interest of the Fund. The Fund filed civil suit No.HCC/353/2008 at the Milimani Commercial Courts for the cancellation of the entire transaction with claim of general damages for breach of contract. The Fund has registered caveats against all the titles. The Commissioner of Lands has also registered restrictions against all titles. Thank you very much."
}