More heads are set to roll at Kenya Pipeline Company (KPC) as detectives plan more arrests of officials implicated in massive fuel theft disguised as spillage.
The Directorate of Criminal Investigations (DCI) is targeting officials involved in the construction of a pipeline between Nairobi and Mombasa.
On the spotlight is the awarding of the most lucrative tender to Zakhem International, a Lebanese firm, to build a new pipeline in 2014 at nearly Sh48.8 billion — yet the contract price has been adjusted upwards by at least Sh2.7 billion.
Detectives confirmed they have completed investigations into the alleged graft surrounding the tender and are pursuing the suspects who will be in custody before Friday. “We will not reveal their names now to avoid interfering with the impending arrests, but by Friday all of them will be in custody awaiting prosecution,” said a detective who sought anonymity.
Police sources said the initial cost of the construction of Line 6 was Sh48 billion, but the contractor had returned to demand a further Sh208 million. Zakhem International reportedly demanded a Sh4.4 billion penalty for delays in building the 450km pipeline.
Appearing before National Assembly’s Public Investments Committee a fortnight ago, embattled ex-KPC MD Joe Sang confirmed that Zakhem had slapped them with an extra Sh5 billion claim for delays in completing the project.
Details of the loan agreement make it mandatory that the money is paid quarterly, meaning that KPC has to part with some Sh1.34 billion quarterly.
Early this year, Sang said that out of the Sh48.8 billion shelled out for construction of Nairobi-Mombasa pipeline, Sh35 billion was a loan from a consortium of tier one banks on the strength of the KPC balance sheet.
About 20 suspects in National Hospital Insurance Fund and Kenya Pipeline Company arrested on Friday are expected to be arraigned in court this morning.
Director of Public Prosecutions (DPP) Noordin Haji has already approved prosecution of 26 individuals over the alleged loss of public funds at the insurance fund and KPC.
The arrest of individuals at the two of the country’s biggest parastatals on Friday marked a major breakthrough in the fight to safeguard public funds at two state firms that have been the focus of corruption crackdowns.
Some of KPC, NHIF managers arrested after weeks of boardroom drama and what detectives said was the erection of roadblocks by those suspected of graft,
According to detectives involved in the arrest, for some of suspects, it was the end of the road after playing cat-and-mouse games with investigators seeking access to crucial documents that would have been used to nail them.
The suspects arrested from NHIF and KPC were yesterday still cooling their heels at various unknown police Station sin Nairobi where they have spend three nights since their arrest on Friday.
Other suspects are still not traced after switching off their phones in what detectives said was an attempt to evade arrest.