Detectives Investigate Sh70 Billion Scam at Kenya Pipeline Company

Even before the dust settles on the Sh9 billion scandal at the National Youth Service (NYS), detectives have commenced investigations into yet another scandal at a government institution.

In what could be the country’s biggest corruption scam, the authorities are probing the alleged loss of a whooping Sh70 billion at the Kenya Pipeline Company (KPC).

Retired and present officials of the parastatal are lined up for interrogation over claims of highly inflated prices for procurement deals undertaken in recent years, the Standard reports. Among those lined up for questioning is a Cabinet Secretary.  

At the centre of the probe is a lucrative tender awarded to a Lebanese firm, Zakhem, to construct a new pipeline in 2014 at about Sh48 billion, but the contract was inflated by around Sh2.7 billion.

 “It involves several cases including the last week where managers’ homes were searched,” a source at the Directorate of Criminal Investigations said, referring to a raid  on the home of former KPC boss Charles Tanui over the weekend.

Mr Tanui is reportedly being investigated for among others,  procurement of specialised equipment at a cost of Sh647 million. KPC managing director, Joe Sang rubbished the alleged loss of Sh70 billion at the company, terming the claims as mere speculation and rumours. 

 “We find these allegations quite inaccurate, astonishing and maliciously calculated to injure KPC as a responsive organisation that is currently fulfilling its mandate to the Kenyan people,” said the MD. 

 “I am not aware of any investigations on the company but as its managing director, I am available to provide any information demanded of KPC,” Mr Sang said. 

The Ethics and Anti-Corruption Commission (EACC) confirmed probe into the alleged loss is ongoing and arrests would ensue thereafter.

“The amount in question cannot be confirmed but it is true we are investigating them,” EACC Chief Executive Michael Mubea told The Standard. 

 “Once investigations are complete, those found culpable will be subjected to the normal course of the law,” he said.