MPs to grill KPC managers over Ksh.2B scandal


MPs to grill KPC managers over Ksh.2B scandal
Kenya Pipeline Company (KPC) storage facility

In Summary

  • This comes even as KPC Managing Director Joe Sang announced he would be leaving the company, with the KPC board calling for an urgent internal audit in the procurement process.
  • Meanwhile, EACC had also commissioned an audit in the procurement of hydrant valves by KPC with some Ksh.640 million claimed to have been lost.
  • Already, three directors, ex managing director, and two senior managers are among persons of interest in the probe.

MPs have summoned top Kenya Pipeline managers for grilling next week over allegations of fraudulent tendering and questionable payments totaling to over Ksh.2 billion.

According to the Public Investment Committee chair Abdulswamad Nassir, taxpayers’ money has been lost in the construction of the Mombasa-Nairobi pipeline that cost over Ksh.4 billion.

The MPs further claim the parastatal has been draining tax payers money through the pipes following the latest auditor general’s report on the construction of the 470km pipeline from Mombasa to Nairobi.

The Ksh.4.8 billion project was for a new modern pipeline to safely transport petroleum to the capital.

The tender was awarded to Zakhem International Construction Company with the auditor general’s report saying it was fraudulently awarded, with minimal time given to bidders.

The pipeline construction however received some variations and changes made midway with 73percent of the changes allegedly made by the KPC.

According to the report, the variations included changes of the design specifications as well as omissions of some works from the initial contract.

It is these changes that allegedly made the contractor slap KPC with Ksh.3.8 billion bill in which the auditor general questions over expenditure of Ksh.92million.

This comes even as KPC Managing Director Joe Sang announced he would be leaving the company, with the KPC board calling for an urgent internal audit in the procurement process.

Meanwhile, EACC had also commissioned an audit in the procurement of hydrant valves by KPC with some Ksh.640million claimed to have been lost.

Already, three directors, ex managing director, and two senior managers are among persons of interest in the probe.

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Story By Stephen Letoo
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