EACC raids home of Pipeline finance head in crackdown

Kenya pipeline storage facilities. FILE PHOTO | NMG

What you need to know:

  • The Ethics and Anti-Corruption Commission (EACC) descended on finance manager Samuel Odoyo’s residence in Syokimau, recovering documents linked to the purchase of 60 hydrant pit valves (HPVs).
  • The investigators also raided a home of former KPC managing director Charles Tanui and the property of all former executives at the state agency and businessmen linked to the Sh550 million deal.
  • The EACC is probing claims that the contract was inflated and possibility of collusion between the KPC and the briefcase firm offered the multi-million shilling tender inked in 2015 and whose tendering started in 2014.

The anti-corruption watchdog detectives yesterday raided the homes of the Kenya Pipeline Company (KPC) head of finance and a former CEO  over irregular purchase of airplane fuelling kits at the Jomo Kenyatta International Airport for Sh550 million.

The Ethics and Anti-Corruption Commission (EACC) descended on finance manager Samuel Odoyo’s residence in Syokimau, recovering documents linked to the purchase of 60 hydrant pit valves (HPVs).

The investigators also raided a home of former KPC managing director Charles Tanui and the property of all former executives at the state agency and businessmen linked to the Sh550 million deal.

The EACC is probing claims that the contract was inflated and possibility of collusion between the KPC and the briefcase firm offered the multi-million shilling tender inked in 2015 and whose tendering started in 2014.

“The raid was in search of crucial documents to aid investigation in relation to irregular award of Sh550 million tender to Aero Dispenser Valve Limited to supply valves at JKIA,” said EACC spokesman Yassin Amaro yesterday in a phone interview.

“We have recovered crucial documents which will help us in ongoing investigations,” he said.

The crackdown comes as investigators probe loss of billions of shillings at the NYS and fertiliser and maize scam at the National Cereals and Produce Board in renewed efforts to punish top officials accused of graft.

Public frustration has mounted in recent months over the failure to prosecute top officials accused of graft.

President Uhuru Kenyatta promised the private sector lobby early this month improved investigations into corruption and increased prosecutions.

In 2014, KPC tendered for the supply of 60 HPVs — equipment used in refueling aircraft— at the JKIA to replace faulty and outdates ones, at a cost of Sh600 million.

KPC says they bought the pit valves to replace 43 non-compliant valves at the airport. The 17 extra valves were spares.

EACC is probing whether the cost of the valves were inflated and possibility of collusion between KPC and the firm that won the tender to supply the fuelling equipment.

The valves were delivered to KPC within three months after the tender was issued. Investigators reckon that the delivery period was a record time given that it takes up to six months for the order to be manufactured and materials get shipped.

The firm delivered the valves with no documentation showing a pre-shipment order or bill of lading, which shows the purchase trail from acquisition overseas to delivery at the KPC. 

The KPC rejected the valves.

Presently, the valves and the spares are at the KPC stores and cannot be used since they are subject to investigations, translating to loss of hundreds of millions of shillings.

Parliament was earlier told that the cost of the valves was grossly exaggerated. KPC paid 40 per cent upfront before the delivery of items, against procurement regulations.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.