State House unit visits troubled oil pipeline firm

The Presidential Delivery Unit (PDU) will carry out a performance contracting session at the Kenya Pipeline Company tomorrow.

All department heads and general managers are expected to meet the team from PDU, which monitors the implementation of the Jubilee administration's key projects.

Management evaluation

The KPC board chairman said he saw nothing unusual about the PDU visit.

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"This is a performance management evaluation for the year 2017-18 that PDU is conducting for all parastatals, not just KPC. It’s only that ours will happen this Friday," John Ngumi told The Standard.

The Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC) are conducting probes touching on procurement at the organisation.

A source said State House wanted the probes conducted independently. The Standard could not establish the veracity of the reports.

Other reports indicated that an investigation into the Sh1.7 billion construction of Kisumu Oil Jetty were nearing completion.

The corporation contracted South Engineering Company to build the jetty that was meant to facilitate the transportation of oil through Lake Victoria to Uganda and Tanzania. 

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“You will see action soon. We are doing well in the investigations where Kenyans might have lost money through dubious deals,” George Kinoti, the head of the DCI said.

Other sources told The Standard that an investigation file had been sent to the Directorate of Public Prosecutions (DPP) with recommendations to charge a number of top KPC managers in connection with the Kisumu Oil Jetty project.

“If I am not wrong, the file was returned to the DCI with a nod for high profile prosecutions which should take place anytime,” added an impeccable source.

The DCI is probing cost variation of the project amounting to at least Sh500 million.

Among those who have recorded statements at the DCI in connection with the Kisumu Oil Jetty investigation are Mr Ngumi, MD Joe Sang, the chairman of the board technical committee, Major (retired) Neepe Itayason, a former chairperson of the board finance committee, Faith Boinnet, and a former chairman of the board audit committee, Jerry Simu.

Others are the finance and infrastructure managers.

Original documents

Last Friday detectives from DCI took away a number of original documents relating to contracts and payment vouchers.

Both Ngumi and Sang said they had cooperated with the detectives and provided all the support required.

“We are cooperating with police on the ongoing investigations and provided all the documents and support requested by the DCI,” Ngumi said.

Also under investigation is the loss of 23 million litres of oil through spillage and theft. 

Other investigations are centred on procurement deals in the recent past and board expenses.

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Presidential Delivery UnitKenya Pipeline CompanyDCIEACCState House