Kenya Power case reports go missing

Dr Ken Tarus (left) with the outgoing MD, Ben Chumo, after addressing the press at KPC Headquarters in Parklands, Nairobi. [File, Standard]

Vital documents at the heart of a Sh400 million graft case against former Kenya Power bosses have gone missing.

The firm’s former CEO, Ben Chumo, and his successor Ken Tarus, who is on suspension, are facing charges touching on controversial procurement of transformers from three firms - Ada International Ltd, Muwa Trading Company and Nucon Switchgears PYT Ltd.

Original reports

The case failed to start before Magistrate Felix Kombo yesterday after the prosecution told the court that original reports from the Energy Regulatory Commission (ERC) and another one from the Public Procurement and Review Board (PPARB) could not be found.

The reports are critical to the prosecution’s case as they contain details of the allegations made against the two officials.

Prosecution asked the court to be given until Friday to trace the reports.

“The documents were part of investigations but have somehow evaporated. We cannot move until we are sure where the document is,” Senior Assistant Director of Public Prosecutions Alexander Muteti said.

It also emerged that the Office of the Director of Public Prosecutions had already served the defence with copies of the reports. However, the original documents could not be found.

The DPP's office is required to produce the original documents to ascertain the allegations contained in the copies.

In reply, defence lawyers Katwa Kigen, Harrison Kinyanjui, Gaundaru Thuita and Wandugi Kirathe urged the court to either decline to adjourn or dismiss the prosecution's case.

The lawyers are representing Chumo and Tarus, Beatrice Meso, KP Mungai, Joshua Mutua, Abubakar Swaleh, Samuel Ndirangu, Stanley Mutwiri, Benson Murithi, Peter Mwicigi, John Ombui and director of Muwa Trading Company, James Njenga Mungai.

The 27-page report that has gone missing was prepared by ERC on July 18.

In the report, ERC ruled that 664 out of 2,776 transformers supplied by India-based Nucon Switchgears PYT Ltd were faulty.

The report, which was drafted on request by the Directorate of Criminal Investigations (DCI) also stated that 11 out of 2,840 transformers supplied by Adra International Ltd were faulty and were rejected on delivery.

It also noted that all 501 transformers from Muwa Trading were accepted.

The report stated that 327 transformers supplied by Muwa and 1,399 by Adra were forwarded to Yocean MKL and Panafrica for repairs.

“The above transformers from the three companies were reported to have failed after installation,” the report that is now missing read in part.

The commission however observed that Kenya Power had carried out standard tests on the transformers once they were delivered.

“The committee concurs that the tests conducted by Kenya Power on delivered transformers were as per applicable standards. Correspondences between Kenya Power and the suppliers acknowledged some of the faults identified during inspection and acceptance testing."

In the second report, the procurement regulator claimed that an approved plan for procurement of the transformers was not made available and the tendering document was vague on how much bidders would pay for bidding documents.

Procurement board

In a report dated September 14, 2018, the procurement board said the tendering document did not show how Kenya Power would conduct technical evaluation to ascertain if a bidder had capacity to manufacture transformers.

The board also noted that the power firm failed to register each bidder alongside the type of transformer quoted, and claimed that the tender award was to be made in Central Bank of Kenya’s January 31, 2012 exchange rate for the US dollar at Sh83.1961.

It claimed Central Bank's website indicated that on the said date, the exchange rate was Sh84.5875 against the dollar. It also claimed that the tenders were issued outside the 90-day validity period.

The case will be mentioned on Friday.