Police raid homes in Sh647m fraud probe

Detectives yesterday raided Nairobi homes and offices of former and current Kenya Pipeline Corporation (KPC) managers in investigations into alleged fraud involving Sh647 million.

The officials went to the homes of former Managing Director Charles Tanui, General Manager- Finance Samuel Odoyo and Amina Juma, from procurement department, looking for documents over supply of hydrant pit valves.

EACC chief executive Halakhe Waqo said the commission is investigating allegations of corruption in the award of the tender to supply hydrant pit valves complete with isolation valves and two year operational spares.

The equipment, used in refuelling aircrafts at Jomo Kenyatta International Airport, were procured in 2014.

The detectives went to the homes and offices of the former and serving staff and retrieved several documents and records they are using in their investigations.

“The investigations, which extend to other jurisdictions that include the US and Canada, are at an advanced stage and expected to be completed soon. Appropriate recommendations will be made to the Director of Public Prosecutions for action,” said Waqo.

In 2014, KPC tendered for replacement of 60 HPVs to replace faulty and outdated ones at a cost of Sh600 million. All the 60 valves were delivered.

But before they could be put to use, EACC moved in to investigate the tendering process. The EACC investigations put a freeze on their use and stopped further payments to Aero Dispenser Valves Ltd, the company that delivered them. The company had already been paid Sh200 million.

In a letter dated February 19, 2015, Aero Dispenser Valve Ltd, was awarded the tender for supplying the hydrant replacements.

“Following detailed evaluation of tenders, KPC is pleased to advice you that you have been awarded tender for the above at USD 6,409.491 (USD Four Hundred and Nine Thousand, Four Hundred and Ninety One and Eighty Nine Cents), inclusive of all taxes,” says the letter of award sent to the company's managing director and signed by Mr Tanui

Juma was, on May 23, 2017, charged with forgery of multi-million shilling KPC tender documents dating back to five years ago.

Juma and Beryl Aluoch Khasinah denied the charges before chief magistrate Francis Andayi.

Commit felony

Ms Khasinah was charged with conspiring to commit a felony, four counts of forgery, two counts of making a document without authority, two of obtaining registration by false pretence and another one of altering a document with intent to deceive.

Juma was charged with a single counts of the offences of making a document without authority, forgery, altering a document with intent to deceive and obtaining registration by false pretence.

The court was told that on September 4, 2014, Ms Khasinah conspired with others to forge a signature of one Micha Opundo on an affidavit drawn by Nyandieka and Associates Advocates.