Kenya Pipeline Company MD Joe Sang and four co-accused all denied graft and abuse of office charges in the Sh1.8 billion Kisumu oil jetty contract scandal.
Well in addition to their defence, Petroleum CS John Munyes has defended suspended Kenya Pipeline CEO Joe Sang saying the government did not lose money in the Kisumu Oil Jetty project.
“No coin was lost in the Kisumu Oil Jetty project. I, however, leave the court and investigating team to do their job,” Munyes told the Senate Energy Committee on Tuesday.
He said tendering and execution of the project was above board.
After the five denied three counts relating to the loss of Sh1.9 billion in the construction of the Kisumu Oil Jetty, they were released on a two million cash bail each.
They are suspended CEO Joe Sang, Gloria Khafafa (company secretary), Vincent Cheruiyot (GM supply chain management), Billy Aseka (general manager infrastructure), and Nicholas Gitobu (procurement manager).
Munyes said that they had estimated the project to consume Sh1.48 billion but issued a Sh1.7 billion tender to cover overheads.
”If you add taxes to Sh1.7 billion, it gives you a range of Sh1.9 billion. All this was approved by the board and the Treasury,” Munyes said.
The CS said the Oil Jetty was a presidential directive following an East Africa Community agreement to have one for effective transfer of oil products in the region.
The KPC suspects were charged with abuse of office, failure to comply with applicable procedures and law and engaging in a project without prior planning.
Chief Magistrate Douglas Ogoti also ordered them to deposit their passports in court.
Police were also looking for Finance GM Samuel Odoyo and former Procurement GM Nicholas Gitobu. The officials spent the weekend in police custody where they received a number of visitors including high-profile personalities in the country.
Lawyers Ahmednassir Aabdulahi, Prof Tom Ojienda and Danstan Omari represented the pipeline officials.
KPC has been making headlines in the past few weeks after it emerged that some officials might have sold oil products and claimed they were lost in spillages that have been hotly contested by oil marketers.
The marketers have refused to have the cost of the losses passed onto consumers and demanded an independent audit that the oil-pumping company has agreed to.