Stolen KPC millions traced to Kulei accounts

An investigator Thursday told the court how he traced millions of shillings irregularly withdrawn from Kenya Pipeline Company (KPC) and wired to bank accounts of former President Moi’s aide Joshua Kulei.

Testifying before Senior Principal Magistrate Felix Kombo, David Kang’ara said a trail of KPC banking at Commercial Bank of Africa linked payments to firms linked to Mr Kulei.

Mr Kulei’s firm was paid Sh17.9 million for services not rendered and on claims that it offered engineering to an LPG company called East Africa Gas Company Limited (EAGCL) which was owned 45 per cent by KPC.

Under a joint venture in an LPG plant, KPC was to provide cash while EAGCL was required to provide land and equipment worth Sh92.5 million.

The land offered for the joint venture belongs to the government; 12 plots were irregularly excised from Kenya Airports Authority (KAA) property and transferred to EAGCL.

KPC spent Sh65 million on consultancies and feasibility studies on the non-existent project from 1995 to 1997. According to the prosecution, Mr Kulei obtained Sh12 million from Gasthe LPG company on May 19, 1999 through another of his firms, Ashar Ltd, and a further Sh5.9 million later by falsely pretending that his firm Sian Ltd had paid land rent, rates and the assessment fee during the Moi era.

The companies were allegedly paid irregularly without providing any goods or services to EAGCL, Mr Kang’ara told the court.

Mr Kulei, Ashar Limited, Sian Enterprises and Agrid Limited, former KPC managing director Ezekiel Komen and Prakash Bhundia are accused of conspiracy to defraud a state corporation of Sh65.2 million in 1999.

The accused have also denied abuse of office charges arising from the transfer of the 12 plots.

Mr Komen is also accused of breach of trust by authorising the payment of the money.

He is said to have been a signatory on behalf of the KPC.

The Director of Public Prosecutions declined to have the case settle out of court.