This archive report was first published on 18 October 2021.
Kenya Ports Authority (KPA) has been embroiled in a financial scandal after a joint venture with Steam and Petroleum Company and RGT Runway Beam at Embakasi ICD resulted in a loss of up to Kshs. 54 million.
According to a statement by Director of Steam and Petroleum Ltd, Steve Mwangi, the loss occurred after a breach of terms of the joint venture when the company failed to pay KPA contracts as agreed.
"Trouble began when invoices were sent to KPA for Kshs. 34,723,935.07 and Kshs. 25,000,000/= respectively, whose proceeds were to be paid through the ‘Checking Account’ No. 32876002 held at the Transnational Bank. Without its knowledge, the Source Logistics director, Mr. James Daniel Dena, while in fraudulent collusion with KPA employees, caused the invoices in the sum of Kshs. 54,723,935.07 to be paid through Account No. 1380265181582 held at the Equity Bank Limited in the name of Source Logistics East Africa Limited, which is solely operated by Mr. Dena," said Steve Mwangi in a statement.
As part of the agreement, Steam and Petroleum and Source Logistics were to own interests in the joint venture at a ratio of 82.5 percent and 17.5 percent, respectively, and share any profits/losses and liabilities in that ratio.
Steve Mwangi has urged the Central Bank of Kenya, the Capital Markets Authority, and the Directorate of Criminal Investigation to investigate the matter urgently to end impunity and protect customers from fraudulently losing their funds.
"I urge the Central Bank of Kenya, the Capital Markets Authority, and the Directorate of Criminal Investigation to look into this matter urgently. This is the only way we can end impunity and protect customers from fraudulently losing their funds," he added.
