Former KPC managing director Shem Ochuodho. A magistrate has summoned two former Kenya Pipeline Company (KPC) directors for failing to show up at the anti-corruption court to answer fraud charges. File
A magistrate has summoned two former Kenya Pipeline Company (KPC) directors for failing to show up at the anti-corruption court to answer fraud charges. The former corporation chairman Maurice Dantas and sacked managing director Shem Ochuodho were ordered to report to court on February 3.
A senior state counsel in the Attorney-General’s Chambers, Warui Mungai, informed senior principal magistrate Cecilia Githua that Mr Dantas and Dr Ochuodho were out of the country and were therefore unavailable to plead to the charges.
Mr Dantas, Dr Ochuodho and two directors of a debt-refinancing company—Triple A Capital Ltd—John Gichia Macharia and Ms Terry Kiarie Wijenje —are accused of conspiracy to defraud KPC of Sh827 million. They were each granted Sh2 million cash bail pending mention on February 3.
The former KPC directors jointly face eight counts of fraud and abuse of office for allegedly making fraudulent payment from the taxpayers money for services which the anti-graft body claims were never rendered.
Mr Macharia and Ms Wijenje were, however, charged before the anti-corruption court and denied charges of obtaining Sh1.6 billion from KPC by purporting that they settled debts owed by the parastatal to Export Development Canada (EDC) and Japan Bank for International Co-operation (JBIC).
The two also faced another charge of conspiring to defraud the corporation of Sh827 million, jointly with Mr Dantas and Dr Ochuodho.
Triple A Capital Ltd allegedly entered into a refinancing arrangement which required KPC to pay them Sh827,564,608 and in turn, the firm would service the corporation’s international debts.
Mr Dantas and Dr Ochuodho allegedly instructed the Standard Chartered Bank to pay Triple A Capital Sh1.2 billion from KPC’s account.
The money was purportedly a refund to the account of Triple A Capital despite the fact that KPC had paid a similar amount to their foreign creditor, Export Development Canada.
Dr Ochuodho is also alleged to have directed the Standard Chartered Bank to pay Triple A Capital Sh397 million.
Mr Dantas and Dr Ochuodho purportedly conferred a benefit of Sh99 million on Triple A Capital by signing a deed of assignment of debt on behalf of KPC. The deed assignment required Triple A Capital to pay large sums to KPC’s international creditors and seek a refund.
According to the said deed of assignment, KPC paid a further Sh31 million, Sh15 million, Sh11 million and Sh1.2 million to the debt-financing firm for un-rendered services.
Dr Ochuodho is the third consecutive former KPC MD to be charged with corruption. Dr Ochuodho’s successor , Mr George Okungu, was charged with Sh68 million fraud and is currently challenging his prosecution in the High Court. Former MD, Linus Cheruiyot, jumped bail and fled the country after he was charged with Sh339m fraud in 2004.
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