The National Social Security Fund can terminate its deal with Kenya Revenue Authority to collect members' contributions if the terms of the agreement are violated.
The NSSF acting managing trustee Hope Mwashumbe said the agreement was water tight and has an exit clause if it is broken. Mwashumbe said the move was corruption-free and that KRA, with its extensive network and systems will aid the fund achieve maximum returns.
Her assurance came moments after a section of MPs read mischief in the deal saying it was a wider plot by the national government to divert and misuse the public money.
Kiminini MP Chris Wamalwa had raised the alarm when he questioned the move claiming it will deny pensioners who are still owed millions by the fund.
"As the National Assembly we will definitely find out how the deal was entered and the existing terms so that it doesn't appear to be another scheme to defraud the pensioners. Otherwise it is a move that should not have gone through because KRA is known for delays in remitting dues owed to government agencies including NSSF," said Wamalwa.
But the fund's managing trustee downplayed the fears saying the existing memorandum was legally binding with clear targets to be achieved and "parameters to measure the performance."
"The MOU sets clear targets to be achieved by the taxman at the end of every month. If they don't live by the expectations we will terminate it with the option of imposing penalties through the existing legal systems," Mwashumbe said yesterday after a meeting with the Public Investments Committee (PIC) of the National Assembly. She said the two government agencies were currently working on a formula that will detail how the systems must speak to each other.