The anti-graft body has gone after 12 Kenya Pipeline Company (KPC) managers to recover Sh262 million looted from the firm.
In a suit filed at the High Court, the Ethics and Anti-Corruption Commission (EACC) wants the managers compelled to refund the money they allegedly embezzled.
EACC also wants two companies charged together with the managers.
The suit details how the senior managers colluded to inflate the cost of acquiring hydrant pit valves from Canadian firm Allied Inspection and Testing Inc.
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Another local firm, Aero Dispenser Valves Ltd, is named as an intermediate between KPC and the Canadian firm.
The cost was inflated from the initial Sh80.7 million to Sh660 million.
“Our investigations reveal that the price was 717 per cent more than what the items would cost,” said EACC lawyer Lena Chepkosgei.
“The fraud was facilitated by use of false and misleading documents, abuse of trust and illegal use of direct procurement without following due process.
The managers at the centre of the scandal are Managing Director Charles Tanui, Samuel Odoyo (Finance Manager), Nicholas Gitobu (Procurement Manager), Philip Kimelu (Operations Manager), Bramwel Wanyalika (Electricals Manager) and Francis Muraya (ICT Manager).
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Others are Peter Machua (Senior Business Development Officer), Jane Nakodony (Administration Manager), Charles Ndiriti (Senior Electrical Engineer), Charles Ouko (Assistant Engineer), Fredrick Ogenga (Procurement Officer) and Emilio Nderitu (Accountant).
According to EACC, the equipment were originally to be supplied by the US manufacturer Cla-Val Ltd at a cost of Sh59 million, but the managers instead took the procurement deal to the Canadian firm.