We are clean on Total oil losses, Pipeline tells court

Total Kenya was a victim of an oil scandal executed by the fallen Triton Petroleum Company and Kenya Pipeline should be absolved of any blame, a Nairobi court heard on Wednesday.

KPC’s lawyer Githu Muigai said it was Triton that disposed of products belonging to Total Kenya and should be pursued to compensate the oil marketer for the loss.

Total Kenya has sued KPC seeking compensation for the loss of petroleum products worth Sh360 million.

Prof Muigai argued during his submissions that Total Kenya was “swindled” of their products by Triton and not KPC.

The lawyer urged Lady Justice Joyce Khaminwa to set aside ex-parte orders directing KPC to release the oil products failure to which they are cited for contempt.

Prof Muigai asked the court to also discharge the contempt orders, saying his client was not to blame.

The lawyer further told the court that Total Kenya obtained the court orders through non-disclosure of material facts, saying KPC was not holding oil products belonging to Total Kenya at Kipevu Oil Storage Facility (KOSF).

Senior managers

But Total Kenya through Mr Kithinji Marete said Prof Muigai’s application was misconceived and asked the court to find KPC senior managers in contempt.

The oil marketer is seeking orders to commit KPC managing director, Mr Selest Kilinda, and company secretary, Ms Flora Okoth, to civil jail for refusing to comply with the orders requiring the parastatal to release 5,000 metric tonnes of oil valued at $3.14 million (Sh250 million).

Total Kenya is also demanding Sh116.4 million paid to the Kenya Revenue Authority (KRA) as taxes towards the purchase of the fuel through Triton Petroleum but held in trust by KPC on instructions of debentures KCB and PTA Bank.

KPC has opposed the application for contempt, saying Total Kenya had sought to attach its assets and similarly arrest its top managers for defying the orders.

“I am aware KPC has always obeyed court orders and has no intention of bringing this court into disrepute,” said Prof Muigai while pleading with Justice Khaminwa to set aside the orders.

Total Kenya wants to attach the assets of KPC to an equivalent value of the petroleum products and taxes paid.

PricewaterhouseCoopers conducted the forensic audit to establish the circumstances under which oil products worth hundreds of millions of shillings belonging to Total Kenya and a chain of other oil companies disappeared from KPC’s Kipevu Oil Storage Facility.

PricewaterhouseCoopers carried out a comprehensive audit into Triton Petroleum’s accounts to unearth the extent of the oil scam whose effects impacted heavily on the local economy.

Triton chairman Yagnesh Devani fled the country and warrant for his arrest warrants are still in force.

Kenya Anti-Corruption Commission and the Criminal Investigations Department were also directed to mount investigations into the scam following the disappearance of the Triton Company Chairman.