From left: Petroleum PS Andrew Kamau, CS John Munyes and chief administrative secretary John Mosonik when they appeared before National Assembly’s Parliamentary Investment Committee. PHOTO | JEFF ANGOTE | FILE
Petroleum CS says there’s need to validate the claim, which was initially quoted at Sh11 billion and later Sh18 billion
Construction of the Sh48 billion pipeline has suffered five interruptions, delaying completion of the 450-kilometre pipeline.
The KPC management struck a deal with Zakhem on April 9 for payment of $44 million (Sh4.4 billion) to cover the first four interruptions.
President Uhuru Kenyatta has directed Kenya Pipeline Company (KPC) to seek a second opinion on payments of Sh4.4 billion that a Lebanese contractor is demanding for operational delays in the building of the Mombasa-Nairobi pipeline.
Through the Head of Public Service Joseph Kinyua, Mr Kenyatta wants KPC to ascertain whether the claims of Sh4.4 billion that the oil marketer and Zakhem International have since been settled on should be paid.
Petroleum Cabinet Secretary (CS) John Munyes told the Public Investments Committee (PIC) that after consultations with the presidency and Treasury, it was agreed that a second independent party scheduler be hired to look at the processes leading to the extension of time (EOT) claims and validate the Sh4.4 billion bill.
“We just wanted to seek a second opinion to validate these claims. That is the long and short of it,” Mr Munyes said.
Mr Munyes said an inter-ministerial committee comprising the presidency, Treasury, KPC and Zakhem was put together by Mr Kinyua to look into the pending claims.
“Given the rise of claims from initial Sh11 billion to Sh18 billion and suddenly coming down to Sh4.4 billion, it requires a cross check given the corruption climate in the country. It is in my interest to ensure that these claims are cross-checked before payments are made,” Mr Munyes told the committee chaired by Mvita MP Abdulswamad Nassir.
KPC has a month to hire the scheduler, Mr Munyes said.
Sh18.4b claim
MPs put Mr Munyes to task to explain what would happen if figures from the new scheduler were higher or lower than the Sh4.4 billion.
KPC hired M/s Nyara consultants as a scheduler when Zakhem put in a Sh18.4 billion claim. The firm has so far been paid Sh31 million.
Petroleum Principal Secretary Andrew Kamau told MPs that M/s Nyara did not talk to KPC project consultant-Shanghai Little Eagle Science&Technology Co. (SLEC)-when it came up with the Sh4.4 billion settlement.
“The job of a scheduler is to speak to the contractor, engineer or engineer’s representative and come with picture what was supposed to happen at what point.
"This scheduler didn’t speak to engineer or engineer’s representative. That is fact,” Mr Kamau said adding that M/s Nyara verbally informed him.
Five interruptions
Construction of the Sh48 billion pipeline has suffered five interruptions, delaying completion of the 450-kilometre pipeline that was expected in 2016.
The KPC management struck a deal with Zakhem on April 9 for payment of $44 million (Sh4.4 billion) to cover the first four interruptions.
KPC managing director, Joe Sang on April 19 sought Mr Munyes’ approval for the payment in a notice that was copied to Treasury CS Henry Rotich, Mr Kamau and the Attorney- General.
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