The Directorate of Criminal Investigations is dissecting what could be the biggest scandal as it investigates at least 27 projects supposedly carried out in the last four years by the Kenya Pipeline Corporation (KPC).
The procurement proceeds estimated to have gobbled at least 95 Billion at the KPC were channelled in smaller amounts through at least 10 different avenues.
KPC Managing Director Joe Sang is expected to address the media on Tuesday in what is seen as an early move to counter the exposé.
[caption caption="Kenya Pipeline infrastructure "]
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Among contracts on the detectives' radar is the Sh80 Billion Mombasa-Nairobi Pipeline. The construction works tender awarding was delayed for 43 months and later awarded to an Israeli firm, Zakhem.
DCI Director-General George Kinoti is leading the probe into what was earlier planned as a replacement of the old pipeline led to the KPC management's decision to build an all new infrastructure between the two cities. The criteria used in the award of the tender is also under scrutiny.
Tendering processes in the construction of the Sinendet-Kisumu Sh1.2 Billion Pipeline are also being looked into. The investigations are focused on why a tender earlier allocated to an Egyptian firm was cancelled and re-advertised.
KPC reportedly included a section that could be used for future expansion on the line, which would cost Sh2 Million but the tender was awarded for Sh.2.1 Billion. The Egyptian firm bid the tender for Sh490 Million but was struck out of the deal.
Fuel worth Sh960 Million is suspected to have disappeared in the last four years. KPC officials are being grilled for the loss of at least 1.5 Million liters of fuel valued at Sh150 Million while more fuel worth Sh800 Million disappeared in 2016.
While KPC has a clean bill of health whenever declaring 250,000 liters as loss for every 1 Million liters moved, in South Africa the loss volumes are put at 100,000 and 60,000 liters for Thailand.
KPC is also on the DCI radar over Sh500 Million lost in a Sh800 Million fibre optic cable project. The corporation is under investigation as to whether the evaluation for the tender on the fiber cable for the Nairobi-Eldoret pipeline was done in a skewed manner.
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They are also required to explain the purchase of a parcel of land at the head office for Sh670 Million while valuation processes put the property at Sh 235 Million. KPC had involved a broker in the deal.
Officials at KPC are suspected to have been part of companies involved in the procurement of pipeline composite sleeves worth Sh400 Million. Detectives are also seeking to know whether there were any overlooks on procurement procedures in the sleeves supply reportedly done at grossly inflated prices.
A senior KPC official allegedly faked pit valve manufacturing ratification for his company and secured a tender to supply the valves that were to be fixed at Jomo Kenyatta International Airport. Detectives are seeking to find out whether the prices totaling to Sh600 Million were inflated and have an early payment approval justified by the corporation.
The Public Procurement Administrative Review Board has been roped into investigation into the corporations's move to split the Scada project and increase its costs by Sh2 Billion. The Sh8 Billion contract was initially awarded to a Siamese firm but was cancelled and split into two.
The procurement and commissioning of a pipeline training system that had been set to cost Sh600 Million was increased to Sh900 Million, raising more questions.
