Investigations Launched Over Loss of Ksh70 Billion at Kenya Pipeline Company

  • Investigations have been launched in yet another scandal to probe the loss of Ksh70 billion at the Kenya Pipeline Company (KPC).

    Reports indicate that the investigations will be majorly centered on claims of huge inflated prices for procurement deals undertaken at the parastatal in the recent past. 

    Officials are alleged to start being questioned this week even as President Uhuru Kenyatta vowed to wage war against corrupt individuals in all government agencies. 

    According to sources linked to The Standard, Cabinet Secretary for Energy Charles Keter is among those persons of interest in the investigations. 

    [caption caption="File image of Kenya Pipeline Company Managing Director Joe Sang"][/caption]

    It is also noted that a keen look will be on the awarding of the most lucrative tender to Zakhem, a Lebanese firm, to build a new pipeline in 2014 at nearly Ksh48billion, however, it is affirmed that the contract price has since been adjusted upwards by at least Ksh2.7 billion. 

    A report by The Standard revealed that the Directorate of Criminal Investigations (DCI) have confirmed the progress of the probe, which KPC managers claim to know nothing about. 

    "It involves several cases including the last week where managers’ homes were searched," noted a source. 

    Former KPC boss Charles Tanui, is currently under investigations among others for procurement of Ksh647 million worth of specialised equipment. 

    However, Joe Sang, the KPC managing director on Sunday denied the alleged Ksh70 billion losses terming them as mere speculation and rumors. 

    Sang asserted that the firm had diligently delivered on its core mandate of ensuring that petroleum products were readily available over the last four decades. 

    "We find these allegations quite inaccurate, astonishing and maliciously calculated to injure KPC as a responsive organisation that is currently fulfilling its mandate to the Kenyan people.

    "I am not aware of any investigations on the company but as its managing director, I am available to provide any information demanded of KPC," Mr Sang added.

    In his defense, Sang also stated that all the payments made by the parastatal were obeyed adding that the new pipeline, whose completion has been delayed for nearly two years after the target handover date of September 2016, was informed by projected market needs.  

    On their part, the Ethics and Anti-Corruption Commission (EACC) confirmed that investigations were ongoing and arrests will soon be made on the suspects. 

    "The amount in question cannot be confirmed but it is true we are investigating them," EACC Chief Executive Michael Mubea mentioned. 

    [caption caption="File image of Kenya Pipeline Company"][/caption]