Fund’s property at risk of auction over contract row

A pension fund administrator is facing the risk of being auctioned over a debt of Sh125 million linked to a cancelled contract to build 46-floor property in the city.

Apex Systems Consulting Group Ltd has already directed Clear Real Auctioneers to attach the pension fund to recover the alleged debt amounting to Sh50.2 million.

The High Court had on January 30 allowed the application by the consultant and later the company obtained orders to attach Zamara Fanaka’s property to recover the debt.

The company together with AIA Architects Limited had been contracted in October 2015 to offer services for 46-floor building in Westlands area.

Then, Zamara Fanaka, formerly known as Alexander Forbes hired a consortium of firms, known as Magharibi, to put up the multi-storey building.

But three years later, the pension fund informed the contractors that it was abandoning the project.

The move forced the consultants to file a claim of Sh125 million on account that it had done 75 percent of the work.

AIA then demanded Sh76.6 million while Apex Systems Consulting sought Sh49.1 million for services it offered.

The amount demanded by Apex had risen to Sh52.4 million from cost of the suit and interest since filing the case.

The building would have consisted of its offices while the rest would be rented for commercial and retail shops.

Zamara has about 180 client-organisations with about 37,000 employees and savings of up to Sh28 billion.