This archive report was first published on 4 October 2019.
Published on October 4, 2019, the Office of the Auditor-General has raised concerns over the Kenya Pipeline Corporation's (KPC) expenditure, with the suspected misappropriation of Sh7.1 billion.
The National Assembly Public Investment Committee (PIC) has been investigating the matter, with KPC's acting managing director, Hudson Andambi, appearing before the committee.
At issue is a Sh4.3 billion debt owed to Kenol/Kobil Ltd, which was recommended to be set aside as bad debt by the KPC board's finance committee, chaired by a lawyer representing the oil marketer.
Committee chair Mvita MP Abdullswamad Nassir questioned the conflict of interest, asking Andambi if he was aware that the lawyer chairing the finance committee had a client involved in the matter.
Andambi admitted that he only learned of the lawyer's affiliation with Kenol/Kobil after the audit report was made public.
He also acknowledged that impunity reigned at the corporation, with cartels and staff stealing and manipulating tenders and contracts at will.
The MPs also raised concerns over the firm's non-adherence to the Salaries and Remuneration Commission (SRC) guidelines on subsistence allowances.
