13 State officials from Kenya Pipeline Company (KPC) have been put on the spot by the DCI over an alleged multi-billion tax evasion scheme.
DCI boss Kinoti confirmed that they are investigating the loss of billions of shillings that would have been paid to Kenya Revenue Authority (KRA) for equipment and materials used in the construction of Line 5 to replace Line 1.
Reports indicated that KPC had initially obtained tax and duty exemptions from the Treasury through the Ministry of Energy.
However, this was not reflected in the invoices submitted for payment.
The DCI suspects that the state officials in question facilitated a Lebanese engineering firm, Zakhem International, to get the full payment including the tax that had been waived off.
DCI officer Kuriah Obadiah, through a letter, has asked the company to release the wealth declaration forms and payslips of the 13 staffers between the period in question from 2013 to 2020.
Furthermore, Obadiah also requested bank details from KPC of payments made to Zakhem international to verify whether they match the invoices submitted.
Seven years ago, KPC sought to replace the 450 kilometre Line 1, which had been in operation since 1982, with a new modern Line 5.
The pipeline, which stretches from Nairobi to Mombasa, was expected to improve fuel supply to neighbouring countries and reduce fuel fires, siphoning and immense traffic on roads caused by fuel tankers.
This prompted the company to issue out a tender notice in January 2013 for the construction of the new line.
In mid-July 2014, Zakhem International company won the tender and signed a KSh48 billion contract for an 18 month construction period between August 2014 to February 2016.
This is not the first time that the company's senior staffers have been put on the spot over alleged scandals.
Recently, two former KPC officials were also arrested by the EACC for abuse of office.
The commission sought to investigate the alleged payment of Ksh30 million, made by the officials, for three transformers that were never installed.
