The board of Kenya Pipeline Company (KPC) has extended by six months the contract of acting managing director Hudson Andambi who was appointed to run the company last December after the arrest of the firm’s top brass.
Mr Andambi, whose contract now runs until October 6, was appointed by the Ministry of Petroleum and Mining in consultation with board chairman John Ngumi last December and his contract was to expire on April 6.
Former managing director of the scandal-dogged company Joe Sang and four other officials were arrested over alleged corruption involving construction of the Sh1.8 billion Kisumu oil jetty.
“Mr Andambi’s appointment was initially set to end on April 6 but it has now been extended by the board until October 6,” Mr Ngumi told the Business Daily yesterday.
“We are now ready to recruit. An advert will be out in the papers in the next few days with all the details required from the next substantive MD,” said Mr Ngumi.
Mr Sang resigned on December 4 and was soon after arrested over corruption allegations, including massive fuel loss and procurement irregularities.
Other suspects who were arrested were company secretary Gloria Khafafa and head of procurement Vincent Cheruiyot.
Procurement manager Nicholas Gitobu and general manager in charge of infrastructure Billy Aseka were also arrested.
The five accused were, however, released on Sh2 million cash bail each on December 10 after their lawyer Ahmednasir Abdullahi argued that the charges were “generic and not serious.”
The arrests came just a few days after the KPC board invited the Directorate of Criminal Investigations to probe claims of dubious spillage reports.
Reports of stage-managed stock declarations emerged last October after 10 leading oil marketers demanded to have independent experts counter-check KPC’s spillage reports that they said were inflated and the cost transferred to consumers.