Local Authorities Provident Fund (Lapfund);a state corporation that manages pension funds for employees of county governments is currently facing massive losses amounting to millions of monies allegedly orchestrated by its corrupt CEO David Koross.
According to inside sources, Koross has been behind contracts that has seen the body lose millions of shillings, which he will late receive it through his cronies who were awarded the contracts.
In one instance, it is alleged that the development and construction of Mavoko Gardens Estate in Syokimau was estimated at Sh700 million but to date Sh1.2 billion has been sunk.
In this case Mr Koross pocketed Sh60 million in kickbacks, our source informs.
In another case, the development and construction of Golf View Apartments costed the fund over Sh1.5 billion.
Currently the building is closed for renovation at an estimated cost of Sh133 million. The same contractor was involved in Mavoko Gardens.
On top of it, funds amounting to over Sh11 million stolen from Golf View apartments has been written off in as bad debts.
Insiders say that a property agent selling Mavoko Gardens was allowed to retain Sh8 million received on behalf of Lapfund for over two years
Koross and his cronies are also accused of purchasing properties in exegerated prices, and in turn pocketing the surplus.
In one case, they bought 30 acres in Kitengela at exorbitant price of Sh10 million per acre from a broker, while the market price at the time was Sh5 million per acre.
The land is disputed by the owners and they have taken Lapfund to court.
Koross also orchestrated purchase of the land in Bellevue South C, purchased at Sh500 million per acre. A suspicious payment of an extra over Sh300 million was paid in early 2019 one year after the transfer was done.
Also the procurement of architectural/property development consultants amounting to over Ksh150 million was done through restricted tender against the Public Procurement Act provisions.
Currently, the property portfolio is over 10 percent threshold recommended by Retirements Benefits Authority.
“The CEO survives by bribing and compromising anybody who tries to raise a finger and if the trend continues the fund will be depleted of pensioners’ benefits. Politicians and other cartels collect money at will from the fund. He (Koross) has protection from political players and other business cartels,” says our source.
Stakeholders are now calling upon the Directorate of Criminal Investigation (DCI), Ethics and Anti-corruption Commission (EACC) to investigate the issue and bring culprits to book.
