KENYA COMPUTER FIRM LOSES SH39 MILLION SUIT FILED AGAINST PENSION FUND

Computing

A Nairobi Court has dismissed a case filed by an information technology consulting firm seeking to recover Sh30 million from the workers’ pension fund. The dispute was between Tandam Parks Ltd, trading as Tandam Park Consultants, and the National Social Security Fund (NSSF). Mr Leonard Maingi for NSSF, had urged High Court judge, Prof Onesmus Mutungi, to dismiss the case for lack of prosecution, after the director of Tandam Parks Ltd, Mr Antony Muiruri Gachoka, failed to fix it for hearing.

Mr Gachoka was represented in the case by Mr P. Atudo while Mr Maingi appeared for the pension fund. In his application, Mr Maingi argued that since the case was adjourned in July 31, 2000 the company had broken its promise to fix hearing dates, after bringing in two potential witnesses from overseas.

In the plaint obtained by BusinessWeek, Tandam Parks 2000, had said that on October 2, 1997 the NSSF communicated in writing that it wanted the company to manage and organise a computer software on its behalf. Following the letter, the Year 2000 Compliance Conversion Programme Contract was signed.

The plaintiff had claimed that after this, the company was to design and implement a software system for the Fund’s operations, services and management functions.The agreement also provided for the company to provide training and maintain the IT infrastructure change.

Tandam Parks had said that it performed its obligations as per the contract, and duly handed over the IT software to the Fund, which in turn issued a Certificate of Acceptance on December 20, 1999. The plaintiff also claims that following an extension of the contract in a second letter dated June 19, 2000 the company commissioned the firm of Sthele Associates UK to commence clearance of the suspense account to which invoices for payment were raised.

It contends that the NSSF Board withheld payment of Sh8.7 million for work done. The company also demanded an additional Sh10 million for lost earnings, and a further Sh11.1 million as expected loss of earnings and interest. But in its defence, the NSSF denied the existence of any contractual agreement between the parties. The case is back in court on Wednesday when both parties will make their submissions.

The Nation