If there was an award for the company with the most scandals in Kenya, the Kenya Pipeline Corporation (KPC) would be the undisputed winner.
KPC is no doubt one of the corporations that have had mega corruption scandals over the years that has seen billions of taxpayers’ money either get stolen or misappropriated.
The series of scandals at KPC kicked off during the 2013/14 financial year when the company tendered to deliver 60 hydrant pit valves for Jomo Kenyatta International Airport at a cost of Ksh. 647 million. Aero Dispenser Valves Ltd was awarded the tender to supply the items following a procurement process that investigations later revealed was flawed.
EACC detectives said the tender was inflated as 60 hydrant pit valves at a cost of Ksh. 647 million meant that one valve was supplied at an average cost of Ksh. 10 million, almost ten times the actual price of Ksh. 1.5 million.
In May this year, detectives from the Ethics and Anti-Corruption Commission raided the offices and residences of KPC officials who handled the procurement and retrieved documents that EACC Chief Executive Halakhe Waqo said were crucial in the investigation.
During the same 2013-14 fiscal year, KPC was caught up in yet another flawed procurement in the purchase of composite sleeve repair kits at a cost of Ksh. 404 million. Composite sleeves are used to restore corroded or damaged sections of a pipeline to a safe operating condition without shutting down operations.
The tender which was awarded to a local company by the name Thermodynamic General Supplies was also allegedly inflated resulting in the loss of at least Ksh. 230 million.
The then KPC Managing Director, Charles Tanui signed the deal on January 24, 2014 for the supply of 620 composite sleeves of various sizes.
Mr. Tanui was later replaced by Joe Sang in April 2016 after the scandal blew out. As we thought, maybe the appointment of a new MD for the company would bring an end to the scandals but the KPC has still been involved in scandals of even greater magnitude.
A few months ago in October, under Sang’s management, another scandal erupted this time involving the construction of the Kisumu oil jetty facility which is supposed to help deliver oil to Uganda and Tanzania.
The scandal involves the loss of Ksh. 1.8 billion through wastage and fraud where KPC allegedly sold old material procured in 2001 to the contractor who was awarded the tender and then claimed to have bought new ones.
The latest scandal to hit KPC is the loss of fuel where oil marketers are demanding Ksh. 1.16 billion in compensation for the loss of Ksh. 11 million litres of fuel through pilferage and spillage.
The tussle involves a stand-off between the corporation and oil marketers on whether or not the compensation should be paid. The contract with oil marketers protects the corporation from compensating for losses below 0.25% of the total amount of fuel pumped through the pipeline within a period of six months.
Joe Sang and other top KPC bosses were between last night and today morning arrested by sleuths from the Directorate of DCI in connection to the latest scandal.
Do you think the three arms of the government are really committed to dealing with graft in the country?