There was fraud in Sh660 million KPC procurement, says EACC

There was fraud in Sh660 million KPC procurement, says EACC

- in News
EACC chief executive Mr. Halakhe Waqo

EACC chief Executive Officer Halakhe Waqo has reported evidence that Kenya Pipeline Company defrauded the public in the purchase of aircraft fueling equipment.

Waqo on Tuesday gave a report to the National Assembly Departmental Committee on Energy, amid investigations into KPC’s procurement of Hydrant Pit Valves (HPVs), the equipment used for refuelling aircrafts.

The company resolved on December 9 2014 to acquire the hydrants directly from the manufacturer, Cla-Val Company.

It allegedly procured the equipment at Sh660 million yet their estimated value was Sh59 million. The payment was about 1,010 percent over market value.

The CEO said he will recommend criminal charges against culprits and the recovery of about Sh200 million.

He said KPC will not pay the difference since individuals will be held accountable.

“The bulk of the money was withdrawn in cash. We are however following bank transfers and analysing the processes further,” he said, adding all stakeholders will be involved.

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