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Graft At KPC Worsens As Sleuths Nose Into Irregular Amaco, AIG Insurance Deals

KPC Chairman John Ngumi. [IMAGE/ COURTESY]

The rot at the Kenya Pipeline Company (KPC) seems deep rooted, involving several agencies and individuals that have benefited from the proceeds of graft.

The latest to be roped in the troubled Africa Merchant Assurance Company (Amaco) Ltd, which was involved in a tender it never applied for.

The tender, KPC/PU/001-OT/16 for KPC’s “All Risk Industrial and Terrorism & Sabotage Cover”, was won by CIC Insurance but later Amaco got a 30 percent stake while CIC retained 70 percent under unclear circumstances. This happened just three months into the contract, on September 2016. The contract started in June 2016, and is set to end on June 30, 2016.

Also, sleuths from the Directorate of Criminal Investigation (DCI) are investigating how the AIG Kenya Insurance Company Ltd holds the Public Liability Policy despite having not been recommended for the tender.

According to reports, CIC General Insurance’s bid was the most responsive and was recommended for the Public Liability Policy. However, KPC ignored this recommendation.

Reports by the Nation indicate that DCI boss George Kinoti confirmed the ongoing investigations, saying that he was “going after all those who stole at KPC and other public institutions”.

KPC Board chairman John Ngumi, who is thought to have been the mastermind of scandals at KPC, has been trying to keep the scandals under wraps.

Kahawa Tungu understands that Ngumi faces arrest after a meeting with the DCI on January 31 where he was asked for the tender documents.

Read: KPC Chairman John Ngumi Among Those Hiding Taxpayers Billions In Offshore Accounts

However, Ngumi has been quick to downplay the reports, saying that the DCI are only ‘interested’ in their insurance arrangement.

“What I can state with certainty in regard to our insurance arrangements is that recent internal inquiries initiated and overseen by the acting managing director did uncover concerns about our insurance arrangements. Management immediately brought these concerns to my attention. Given the urgency of the issues, on behalf of the Board (and keeping the Board informed) I requested management to effect immediate remedial action. I am pleased to say that the management has addressed these concerns swiftly, decisively and conclusively, and these concerns have been resolved,” said Mr Ngumi.

So far, since 2018, the company is facing 13 multi-billion scandals involving several top officials and companies.

This has seen several exit the stage including  former managing director Joe Sang, company secretary Gloria Khafafa, who is said to have been hired irregularly and head of procurement Vincent Cheruiyot.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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