in ,

PS Andrew Kamau, Joseph Njoroge And KPC Chairman John Ngumi Axis Of Corruption At Energy Ministry (Part 1)

The arrest of outgoing Kenya Pipeline Company (KPC) managing director Joe Sang could be viewed as the final leg in the fight against corruption at the firm, but Kahawa Tungu‘s investigative desk has learnt otherwise.

According to sources within the firm and the government, the arrests were instigated by top government officials who have been implicated in most scandals.

Through the arrests, the officers who we will expose, hope to cover their dirty tracks by victimising their juniors whom they used to enrich themselves in various scandals.

On top of the list is PS Andrew Kamau, Joseph Njoroge, working through junior officers and sometimes directly to gain proceeds of corruption through the firm.

According to ‘top secret’ evidence in our possession, KPC Line 5 Project contract which was fraudulently awarded to Lebanese engineering firm Zakhem (ZIC) at a sum of Ksh48.4 billion, was inflated by Ksh11 billion more to accommodate the gluttony of top KPC managers and officials in the government, led by John Ngumi and PS Kamau.

Evidence in possession of this desk shows that former KPC MD Charles Tanui was paid Ksh300 million in Dubai and Ksh100 million in Kenya through his brother Daniel
Tanui, MD Mitchellcotts, Abdi –MD-Nandi Tea and Mr Terikin, MD Total security.

CS Charles Ketter on entry to the ministry made several demands to Ibrahim of ZIC and was silenced with Ksh100 million. PS Andrew Kamau also benefited with Ksh200 million from his meeting with Ibrahim of ZIC.

PS Andrew Kamau made contacts with ZIC top management in his May–June 2018 trip to
USA and has a confirmation of Ksh200 million to facilitate the variation payment of Ksh11 billion.

Public Procurement Oversight Authority (PPOA) Chair Paul Gicheru was instrumental in the cover up of the tender award with a Ksh10 million reward from ZIC.

Another beneficiary of the scandal is Public Investments Committee (PIC) Chair Adan Keynan who was paid Ksh29 million at ZIC offices at Spring Valley ZIC residence to
cover PIC member although the money never reached the members.

This forced ZIC team to make additional payments direct to PIC members.

KPC Board of Directors and families identified as Faith, Felicity and Charles Tanui, were offered a fully paid holiday to board in a five star hotel in Dubai in addition to Ksh3 million per member.

Outgoing KPC MD Joe Sang and GM Supply Logistics –Vincent Cheruiyot were paid ksh 35M
through sealing solution ltd, Oilfield engineering and Boiler solutions Ltd.

Chief Technical Manager Elias Karumi and project Manager Kiama were paid Ksh80 million to approve design change resulting in a saving of Ksh300 million for ZIC.

Read: Outgoing KPC MD Joe Sang, Five Others Arrested By DCI

Board Technical Chair Marwa was paid Ksh15 million to facilitate design change.
National Construction Authority (NCA) fees 0.05 per cent (Ksh200 million) of the contract sum was paid to ZIC despite a waiver having being sought from NCA and relevant government agencies. The money was shared between ZIC, KPC board and NCA director Manduku.

In the KPC line six Sinendet-Kisumu pipeline, the tender was initially awarded to Petrojet Limited but canceled on instruction of Charles Keter then not a CS to enable China Petroleum Pipeline Bureau (CPP) win the tender. During this period, movement of money from CPP to Kenyan companies not related to the project was witnessed.

KPC Board of Directors were paid Ksh50 million while Charles Tanui was paid Ksh28 million. On the other hand, PS Andrew Kamau ended up with Ksh50 million while MD Joe Sang got Ksh30 million to facilitate final payments to CPP.

In the infamous Kisumu Oil Jetty Project, the budget was varied from Ksh900 million to Ksh1.7 billion on firm instruction from the Board Chair John Ngumi with the support of PS Andrew Kamau.

The winning bidder Southern Engineering Company-(SECO) had made several contacts with the Chair and the PS. The MD Joe Sang and GM Vincent Cheruiyot made contact with directors of SECO in Mombasa. The project is a white elephant and currently not
in use.

In the saga, PS Andrew Kamau was paid Ksh100 million while Ngumi got Ksh250 million at a Nairobi hotel and partially in Dubai through the Sub contractor Consilium Dubai.

KPC MD Joe Sang and GM Vincent Cheruiyot were paid Ksh50million in Mombasa. KPC evaluation team ended up with Ksh10 million.

It is also alleged that CS Keter had a hand in the purchase of KPC 2-acre land (L.RNO 209/8618) at Ksh653 million.

Read Also: Is KPC Colluding With Oil Marketers To Sell Adulterated Fuel And Declare Losses?

In return, Keter was paid Ksh40 million while KPC MD Joe Sang received Ksh20 million
Board of Directors Felicity, Faith, Neepe and Waome got Ksh50 million while National Land Commission (NLC) officials got a share of Ksh10 million.

The sale was facilitated by advocate Khayega based at Maendeleo House which involved massive money laundering.Accounts of ARMCO Directors should were used for bulk cash movements.

The initial valuation by KPC James Nyamongo of Ksh320 million was discarded and NLC
approached to give a higher valuation. Evaluation team were paid Ksh5 million to give a favorable report through Soimo and Gloria Khafafa, the company secretary.

Advocate Richard Cheruiyot based in Eldoret under his firm Cheruiyot and Cheruiyot
Advocates was also involved in the scandal, transacting under Kimaru Kiplagat Advocates.

In the next episode of the expose, we are going to unearth more rot at the firm which has been engineered by Ngumi and Kamau, and anyone refusing to play by their rules is edged out just like it happened to Sang.

Sang did not opt out of the management of KPC, but was pushed out by Ngumi.

Do you have a story you want told? Do you know of a sensitive story you would like us to get our hands on? Email your news TIPS to news@kahawatungu.com  Also WhatsApp 0708677607 with your news tips

Francis Muli

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. He believes in unearthing societal rots that have been hidden from the public eye. He has also carved himself a niche in writing business stories. He has worked for various organisations including Kenya Television Service, Business Today among others. Follow him on Twitter @FmuliKE.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Loading…

0

Comments

0 comments

Coach Nikola Kavazovic Deactivates Twitter Account After Insulting AFC Leopards Official

What President Uhuru and Raila Must Address while in Kisumu