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Former KPC Bosses Face Prosecution Over Sh30.5 Million Scandal

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 16 July 2020.

On July 16, 2020, the Public Investments Committee recommended that the Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC) investigate the tendering process for an obsolete electronic budgeting system at the Kenya Pipeline Company (KPC).

The committee wanted former KPC managing director Joe Sang to be held responsible for the loss of Sh30.5 million paid to a contractor for the system.

However, two previous attempts by the EACC to charge ex-KPC bosses Mr Tanui, Elias Maina Karumi, and Josphat Kipkoech Sirma in 2015 and 2017 failed due to a technical hitch on the anti-graft watchdog's board constitution and a Director of Public Prosecutions order to conduct further investigations.

Investigations revealed that Redline Limited received Sh30 million for three auto-transformers, before being paid another Sh973,912 in installation and commissioning fees.

Documents provided to KPC and approved by the three bureaucrats indicated that Redline had sourced, imported, installed, and commissioned the equipment, despite not being mentioned in the tendering process.

The EACC believes that Mr Tanui, Mr Karumi, and Mr Sirma colluded to ensure that Redline got paid despite not having done any work.

After five years and two failed attempts, the EACC has now gotten the green light to have the trio prosecuted over the procurement irregularity.

Mr Karumi and Mr Sirma were arrested shortly afterwards, but Mr Tanui could not be immediately traced.

EACC CEO Twalib Mbarak has now directed Mr Tanui to surrender himself to officers at the Integrity Centre.

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