DP Ruto's Amaco Insurance Caught Up in KPC Scandal
A firm that is associated with Deputy President William Ruto is under investigation after being awarded a lucrative contract at Kenya Pipeline Corporation (KPC) without following laid down procedures.
Nation reports that the company, Africa Merchant Assurance Company (AMACO), was brought on board midway and given 30 percent of a multi-million shilling business.
Surprisingly, the firm, where Dr. Ruto is a major shareholder, had not taken part in the tendering process for KPC’s “All Risk Industrial, Terrorism and Sabotage Cover.”
The initial contract had been awarded to CIC Insurance after a competitive bidding process. It was to run from June 1, 2016, to June 30, 2019.
Three months down the line, Sedgwick Kenya Insurance Brokers, who was acting for KPC, asked the client if they could co-insure 20 percent of the business to AMACO.
When they failed to get a response, they wrote another letter requesting if they could co-insure 30 percent. Notably, the figure had been revised upwards from 20 percent.
An audit report that is being reviewed by the DCI indicates that former KPC Managing Director Joe Sang gave Sedgwick a green light.
The new arrangement implied that CIC was left with 70 percent and assumed the role of lead underwriter.
Two years later, on August 9, 2018, AMACO billed KPC through six different debit notes some KSh7.6 million in premiums.
A week later, on August 16, 2018, there were two additional debit notes, with a cumulative value of KSh2.2 million.
These are among the transactions that are being probed by the DCI to establish whether the due procedure was followed.
DCI Director George Kinoti summoned KPC Chairman John Ngumi on January 31 to explain the irregularities.
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