This archive report was first published on 3 October 2019.
On October 3, 2019, the National Assembly's Public Investment Committee (PIC) grilled Kenya Pipeline's acting Chief Executive Hudson Andambi over the company's decision to provision Sh4.3 billion as bad debt in its budget.
The committee expressed concern that making such provisions was tantamount to admitting that KPC would lose the case, which has been dragging on for nine years.
The case dates back to December 2010, when an arbitration tribunal ordered KPC to pay an oil dealer Sh4.3 billion for breach of an agreement. The company lodged an appeal, and the determination of the case is still pending.
Andambi told the MPs that the company was not opposed to settling the matter out-of-court and that setting the provision for a bad debt was an accounting practice.
Meanwhile, a police officer and two employees of the Kenya Pipeline Company (KPC) were jailed for 12 years for stealing 33,000 litres of refined petrol valued at Sh3.4 million.
