Part III
The day NSSF went blind
PLAYING blind to better options, the National Social
Security Fund bought warehouses from Quality Group
Limited at a price tag three times what it could have
cost to buy nearby facilities, THISDAY can reveal.
On paper, NSSF bills the Hifadhi EPZ Business Park as
an ideal investment. But in reality, the controversial
deal burnt a huge hole in the finances of the pensions
fund, setting it back by a whopping 47.5bn/-.
Experts now say that the obvious -- and better --
investment option for NSSF would have been to buy the
Millennium Business Park located at the same Ubungo
industrial area. But instead of opting for the more
economically viable, and perhaps wiser, project that
would have cost three times less, NSSF officials chose
the overpriced warehouses bought from Yusuf Manji's
company.
Ironically, the government itself has been negotiating
with the owners of Millennium Park with a view to
buying the facilities at around 16.3bn/-.
Our investigations show that the Ministry of Industry
and Trade had advised the pensions fund to buy the
Millennium Park instead of the expensive godowns from
Quality Group. In fact, the ministry specifically told
NSSF that Manji's godowns were grossly overvalued and
less suited for EPZ activities compared to the cheaper
and more ideal Millennium Park facilities.
However, NSSF went against better judgment and
official government advice and bought the warehouses,
based on an outrageous price tag supported by suspect
valuation reports paid for and commissioned by the
seller -- Quality Group Ltd.
The former Minister for Industry and Trade, Dr Juma
Ngasongwa, told Parliament in his 2004/05 budget
proposals that the government intended to buy the
Millennium Park in order to encourage private
investment in Economic Processing Zones.
He hailed the facilities at Millennium Park as ''ideal
for the development of a vibrant Economic Processing
Zone (EPZ).''
Compare & contrast
Real estate agents told THISDAY that the value of the
property at Millennium Park was worth more than the
Hifadhi EPZ warehouses that NSSF bought from Quality
Group in a hurry. ''The Millennium Business Park has
15,000 more square metres of built-up area compared to
the Hifadhi EPZ Park ? it's absurd to say the NSSF
property (bought from Manji) is worth three times more
while the two facilities are essentially at the same
location,'' a real estate agent told THISDAY.
He added: ''Millennium Park is made of concrete
blocks, while the Hifadhi EPZ was constructed from
metal sheets and glass.''
Our investigations established that while the
Millenniun Park has about of 45,000 square meters of
built-up area, the warehouses NSSF bought from Quality
Group have just 30,000 square meters of built-up area.
On the other hand, the Hifadhi EPZ has parking
facilities for around 100 cars, while Millennium Park
has some 40,000 square meters of parking, roads and
landscaping. The Millennium Park also boasts of 36
showrooms of 144 square meters each and 68 units
ranging from 300 to 3,000 square meters suitable for
light industrial manufacturing, distribution, storage
and warehousing.
The NSSF facility comprises of seven warehouses, one
administration block, a canteen block and two ablution
blocks.
The University College of Lands and Architectural
Studies recently disowned claims by NSSF that the
university college had carried out a valuation of the
godowns it bought from Manji's company and approved
the 47.5bn/- price tag.
The UCLAS management and members of the academic
community declared that the valuation was carried out
by a private consultant and roundly criticised its
accuracy.
The UCLAS Deputy Principal, Prof Bituro Majani, told
THISDAY it was 'highly probable', that there was
massive bribery involved in the deal and urged
government authorities to take action.
The Prevention of Corruption Bureau (PCB) has been
investigating the controversial deal between NSSF and
Quality Group, which has stirred a lot of debate in
Parliament and among members of the public.
Quality Group is also behind a similar suspect deal
with the Public Service Pensions Fund (PSPF), which
was duped into buying Quality Plaza for an a
staggering 36bn/-.
Manji's company earned a cool 83.5bn/- from the two
deals with the pensions funds.
Govt compiles dossier on NSSF dubious deals with Quality Group
THE government has compiled a dossier on the role, if
any, of the Chief Government Valuer in the suspect
valuation of the overpriced warehouses in Ubungo that
NSSF purchased from Quality Group Limited.
A detailed report on the involvement of the Chief
Government Valuer in the matter now rests in the hands
of the Permanent Secretary in the Ministry of Lands,
Housing and Human Settlements Development, THISDAY can
reveal.
The current Chief Government Valuer, Mr Mathias
Longine Banzi, confirmed yesterday that he had sent a
report on the controversy over the valuation of the
godowns to the ministry's PS, Ms Salome Sijaona.
''I've submitted my report to the permanent secretary,
who is the spokesperson of our ministry,'' Mr. Banzi
told THISDAY, declining to reveal the details of his
report.
On her part, Ms Sijaona, who returned to Dar es Salaam
recently from a working trip to Dodoma, could not
immediately comment on the contents of the report.
''I am the only person who can speak on this matter.
Unfortunately, I've been away for the past two weeks
and have long meetings scheduled for today,'' she told
THISDAY at the ministry's headquarters in Dar es
Salaam.
Ms Sijaona promised to squeeze THISDAY to her busy
schedule today to discuss the controversial subject,
before she travels on official duty later in the day.
The suspect valuation of the godowns has been at the
centre of the decision by the National Social Security
Fund to buy the property from Quality Group Ltd for a
staggering 47.5bn/-.
The NSSF management has defended its decision,
claiming it agreed on the price based on valuation
reports prepared by the University College of Lands
and Architectural Studies (UCLAS) and the Chief
Government Valuer.
In a highly controversial move, NSSF used the suspect
valuation reports commissioned by the seller ? Quality
Group Ltd ? instead of carrying out its own
independent valuation of the assets before negotiating
the final price.
The cookies started to crumble for NSSF recently when
the UCLAS management disowned the valuation report,
saying it did not take any part in the exercise.
Furthermore, UCLAS has demanded a fresh valuation to
be done and cited the possibility of corruption and
fraud in the valuation.
Our investigations suggest that the involvement, if
any, of the Chief Government Valuer in the deal would
likely spring out a few more surprises.
In the deal, the NSSF management went against better
judgement and official government advice and bought
the warehouses, based on an outrageous price tag.
The architect of the project is the CEO of Quality
Group Ltd, businessman Yusuf Manji.
The Prevention of Corruption Bureau (PCB) has been
investigating circumstances behind the controversial
deal.
Manji's company is also behind a similar suspect deal
with the Public Service Pensions Fund (PSPF), which
was duped into buying Quality Plaza for a staggering
36bn/-.