Loading...

Sunday, October 30, 2016

A Tale of Two CAG Reports on NSSF?


"The question here remains how a contract or agreement be signed and land ownership in a Public entity without agreed value of each piece of land? Also there was no verification and documents from Land Office provided that Azimio Housing Estate Limited owns 20,000 acres of land at Kigamboni for development. Therefore the signed agreement is not legal and void. Also the agreement was not vetted by the Attorney General (AG) which makes the matter more questionable...The audit scrutiny of such joint venture project revealed the following issues:...i. Overvalued price of Land to a tune of TZS 835,956,806 per Acre...ii. NSSF own land plot of 267 acres acquired for TZS 4,500,000...iii. The amount contributed by Azimio housing is questionable... iv. Financial capacity of Azimio Housing Estates Limited is questionable by having an issued and paid up share capital TZS 10,000,000...v. Lack of evidence for due diligence done with respect to Azimio Housing Limited and its affiliates...vi. NSSF awarded three tenders to owner of Azimio Housing Estates Limited who owns another Company called ZAK Solutions (Tanzania) Limited with tune of TZS 10,243,547,619.2... In addition, we were not availed with any documentation or title to substantiate that Azimio Housing Estates owns additional 19,700 acres of land...." 


CF.

"NSSF entered into a Joint Venture with M/s Azimio Housing Estates to form a Special Purpose Vehicle Company, M/s Hifadhi Builders Limited. Under the contract, M/s Azimio Housing Estates would be responsible to develop 20,000 acres of land situated at Kigamboni of which the First Phase covers 300 acres. In this Joint Venture, NSSF holds 45 percent while M/s Azimio Housing Estates holds 55 percent shares. The total estimated cost of the project was USD 653.44 million and the terms of capital sharing is that, NSSF will fund 45 percent of total project cost and M/s Azimio Housing Estates will fund 35 percent cash plus the value of land which will be regarded as 20 percent. A review of title deeds submitted indicated that M/s Azimio Housing Estates owns two plots with title deeds number 81828 and 105091 for lands which are both located at Rasi Dege measuring 1.98 and 114.11 hectares respectively which were transferred to Hifadhi Builders by M/s Azimio Housing Estates for the First Phase of the project. Using a standard conversion rate of 2.47 acres per hectare, the two tittle deeds give a total of 286.74 acres which is 13.26 acres below the total land required for the First Phase of 300 acres. I have not been availed with title deeds for M/s Azimio Housing Estates contribution which made it difficult to substantiate existence of the plots. In the absence of title deeds, ownership of 19,700 acres being 20 percent contribution by M/s Azimio Housing Estates cannot be substantiated, therefore NSSF money might be subjected to risk of loss. Management is advised to communicate with the Ministry of Land to establish the legal ownership of 19,700 acres of land by M/s Azimio Housing Estates in the project area. Title deeds for the remaining 13.26 acres should be availed" -

0 comments:

Karibu kwenye ulingo wa kutafakari kuhusu tunapotoka,tulipo,tuendako na namna ambavyo tutafika huko tuendako/Welcome to a platform for reflecting on where we are coming from, where we are, where we are going and how we will get there

  © Blogger templates 'Neuronic' by Ourblogtemplates.com 2008

Back to TOP