The board of Kenya Power #ticker:KPLC has extended by four months the contracts of a caretaker management team appointed in July last year to run the utility company, following expiry of its term in December.
The team, which includes acting chief executive Jared Othieno, was appointed by Energy Cabinet Secretary Charles Keter for two months but their term was extended in October to run until December.
This was after Mr Othieno’s predecessors Ken Tarus, Ben Chumo and others were arrested and charged over alleged irregular supply of transformers.
“The board has awarded the officials an extension pending finalisation of substantive recruitment. Adverts will appear early April and be finalised early May,” Kenya Power chairman Mahboub Maalim Mohamed told the Business Daily in an interview yesterday.
“There’s a board decision to have the officials in office until the process is finalised.”
Arrests of the former Kenya Power bosses had raised fears of operations paralysis at the State-owned electricity distributor.
Director of Public Prosecutions Noordin Haji ordered their arrests along with other officials over allegations of procuring faulty transformers which exposed taxpayers to loss of millions of shillings.
The managers are said to have irregurally pre-qualified 525 companies for labour and transport contracts.
Through the contracts taxpayers lost Sh470 million, besides the losses from power outages associated with the defective equipment.
Kenya Power had already paid Sh310 million for the defective transformers despite one of the accused companies terminating the deal.
The purge also saw Mr Keter blacklist more than 350 companies linked to corrupt tender dealings at the firm from participating in energy sector tenders.
Investigations indicated that some employees had been giving tenders to questionable firms.