Kenya Pipeline scam: DPP to take over probe, AG wanted out-of-court settlement


Kenya Pipeline scam: DPP to take over probe, AG wanted out-of-court settlement
Kenya Pipeline Plaza

In Summary

  • Kenya Pipeline received 60 hydrant pit valves for refueling aircraft from Aero Dispensers Valves Limited in July 2015 and paid Ksh.200 million upfront. The standoff now is over the remaining Ksh.455 million.
  • While EACC froze further payment of Ksh.455 million to Aero Dispenser Valve Limited, the anti-graft body in March 2018 gave the pipeline company the green light to use the equipment.
  • The Attorney General, in a legal opinion, directed Kenya Pipeline to explore an out-of-court settlement of the case to safeguard any further loss of public funds.

The Directorate of Criminal Investigations now wants the office of the Director of Public Prosecutions (DPP) to take over the Kenya Pipeline Company corruption allegations case.

It has been one of the least understood cases in all the corruption-related investigations and the DPP is expected to join the fray, to try and get to the bottom of how 60 hydrant pit valves for refueling aircraft ended up costing Kenyan taxpayers Ksh.655 million.

It all began when Kenya Pipeline received the valves from Aero Dispensers Valves Limited in July 2015 and paid Ksh.200 million upfront. The standoff now is over the remaining Ksh.455 million.

The Ethics and Anti-Corruption Commission flagged the procurement as suspect, but the supplier wants to be paid.

Documents in our possession indicate the local firm that supplied the hydrant pit valves had in fact been contracted three times between 2013 to 2015 by Kenya Pipeline.

A probe by EACC and the Directorate of Criminal Investigations (DCI) claimed that the company’s directorship was in dispute, with questions being raised as to whether it was a genuine company.

Despite EACC, in 2015, opening the case, which is also under parliamentary scrutiny, the DCI is equally probing the matter, and now wants the DPP involved in the case to bring it to a close.

It is emerging that while EACC froze further payment of Ksh.455 million to Aero Dispenser Valve Limited, the anti-graft body in March 2018 gave the pipeline company the green light to use the equipment resulting to a suit for the balance and interests accrued since the delivery was done in 2015.

The Attorney General, in a legal opinion, directed Kenya Pipeline to explore an out-of-court settlement of the case to safeguard any further loss of public funds, given the pipeline company had a contractual agreement with Aero Dispenser Valve Limited.

The company had sued Kenya Pipeline Company for non-payment in 2017 but was prevailed upon to settle the matter out of court but when that failed, Aero Dispenser Valve went back to court in 2018 seeking its balance of Ksh.455 million and interest.

Although the EACC claims the paper trail in the tender process was a forgery, Citizen TV has obtained a sworn affidavit of the director of Allied Inspection and Testing inc. James David Yukes, validating the documentation by the manufacturer of the valves Cla-vaal.

In the documents, Cla-vaal appointed the Canadian firm — Allied Inspection and Testing Company — which in turn appointed the local agent — Aero Dispenser Valve Limited — to supply the valves.

The company supplied the 60 valves but with a two-year maintenance spare parts valued at approximately Ksh.655 million. KPC paid Ksh.200 million with the balance of Ksh.455 million being in contention since the probe in 2015.

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Story By Sam Ogina
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