Ex-Kenya Pipeline boss on the run in Sh644m fraud case

Former Kenya Pipeline Company limited (KPC) managing director Charles Tanui. PHOTO | FILE | NMG

What you need to know:

  • Anti-Corruption Court chief magistrate Douglas Ogoti ordered that Mr Tanui be arrested and produced in court on or before January 22,2019.
  • He is to answer several counts of fraud while he was at the helm of KPC.
  • Mr Ogoti issued the arrest warrants for the 11 while releasing on bond seven former KPC employees who had been arrested earlier yesterday.

Former Kenya Pipeline Company (KPC) managing director Charles Kiprotich Tanui and 10 other senior managers are facing arrest for their alleged role in the loss of Sh644 million at the State firm.

Anti-Corruption Court chief magistrate Douglas Ogoti ordered that Mr Tanui, who has since gone underground, be arrested and produced in court on or before January 22,2019 to answer several counts of fraud while he was at the helm of KPC.

Mr Ogoti issued the arrest warrants for the 11 while releasing on bond seven former KPC employees who had been arrested earlier yesterday.

Each of the seven were released on a Sh2 million cash bail after they denied seven counts of conspiracy to defraud the parastatal of $6,441,700.40 (Sh644,700,000), abuse of office, fraudulent procurement, unlawful acquisition of public property and willful failure to comply with procurement laws.

Fourteen defence lawyers led by Michael Muchemi, Ham Lagat, Kiprop Mairmoi, Felix Kiprono and Muthomi Thiankolu urged the magistrate to release the suspects on reasonable bail terms as opposed to the prosecution who sought stringent bail terms for their release.

“I urge this court to grant the accused reasonable bail terms because they are still being presumed innocent until proven otherwise,” Mr Muchemi said.

Mr Lagat said five former KPC employees charged on Monday, among them former managing director Joe Sang, were released on a cash bail of Sh2 million each, setting the benchmark for the bail terms.

Francis Githaiga Muraya, Samuel Odoyo Mikwa, Nicholas Gatobu, Peter Gaitho Machua, Jane Jensai Nakodony, Charles Nderitu Maitai and Emilio Mwai Nderitu made the list of managers charged yesterday.

They denied conspiring to defraud KPC Sh644 million between October 2014 and July 2015 in respect of a tender for the supply of Hydrant Puit Valves Complete with Under Hydrant Valves that came with two years maintenance spares.

The prosecutor did not oppose release of the accused on bond even as he asked for stringent terms.

Mr Ogoti heard that the case against Mr Tanui and 17 others is different from the Sh1.9 billion theft case facing his successor Mr Sang who was charged alongside Ms Gloria Rabai Khafafa (company secretary), Vincent Korir Cheruiyot (general manager, Supply Chain), Billy Letunya Aseka (general manager, Infrastructure) and Nicholas Gitobu (procurement manager).

The court heard that the sixth suspect Samuel Odoyo (general manager, Finance) was not in court but had been arrested for questioning.

Ms Khafafa, Mr Cheruiyot, Mr Aseka and Mr Gitobu also denied abuse of office charges, failure to comply with procedures for management of public funds. The offences relate to construction of the Kisumu oil jetty.

The court heard that Mr Cheruiyot rendered a professional opinion in the award, yet the amount exceeded the approved budget.

In the KPC II case, the suspects were charged over loss of public funds in the procurement of 58 Hydrant Pit Valves to replace faulty ones at the Jomo Kenyatta International Airport (JKIA).

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