Court convicts four in the Sh550 million KPC procurement scandal
27:01:2025: The Anti-Corruption Court has convicted at least four of the 16 Accused persons in a procurement scandal at the Kenya Pipeline Company (KPC) that resulted in a loss of approximately Kes550 million in public funds.
Chief Magistrate Hon. Felix Mutinda Kombo, sitting at Milimani, Nairobi, committed Fredrick Ogenga, Aero Dispenser Valves Ltd, Francis Omondi Obure, and Beryl Khasina, the 11th, 13th, 15th, and 16th accused persons respectively to a non-custodial sentence on January 24th, 2025. Ogenga, a KPC Procurement Officer II (Overseas Procurement), was fined Kes750,000, Aero Dispenser Valves Ltd was fined Kes3 million, Omondi and Ms Beryl Khasina, Directors of Aero Dispenser Valves Ltd were fined Kes500,000 each.
Mr Ogenga was convicted in Count 2 for abuse of office, and the Court found the prosecution evidence to have established the charge beyond reasonable doubt. Ogenga, investigations established, conferred a benefit on Allied Inspection and Testing Company, which had not been awarded the tender. He sent the company a tender document through email concerning Tender No. SU/QT/3264f/14 for the supply of hydrant pit valves and two years of maintenance spares. He, thereafter, purported to communicate the Tender through a wrong email to Cla-val, the original manufacturer of the procured items, and the company that had won the tender.
Aero Dispenser Valves Ltd and its two directors were convicted in Count 3 for engaging in a fraudulent procurement practice. The investigations established that they presented a false CR12 form purporting to be issued by the Company Registry. The Court found the charge to have been proved beyond reasonable doubt.
EACC investigated allegations of corruption at Kenya Pipeline Company Limited regarding the procurement of hydrant pit valves complete with isolation valves and two years’ operating spares. Investigations established that procurement procedures were flouted through conspiracy and collusion between public officials at Kenya Pipeline Company Limited and private individuals and companies. This led to the loss of USD 4,354,516, equivalent to Kes550 million, from Kenya Pipeline Company Ltd.
At least 18 suspects were charged. Later, Jim Yukes, a Canadian National, and his Company – Allied Inspection and Testing, were removed from the initial charge sheet by amendment, leaving 16 Accused persons.
In a June 7, 2024 ruling, the Court found that the 1st to 7th, 9th, 10th, and 12th Accused persons had no case to answer and acquitted them under Section 210 of the CPC in Counts 1 and 5. That left five Accused persons: the 11th, 13th, 14th, 15th, and 16th. The 14th Accused person was acquitted in the January 24th, 2025 judgment for lack of evidence.
