The Kenya Pipeline Company (KPC) has denied that the company has lost Ksh95 billion of taxpayer’s money as reported by mainstream media. At a press conference to set the record straight today, KPC Managing Director Joe Sang said the allegations being portrayed in the media on all the projects that the company has been running were inaccurate.
“One media house stated we lost Ksh70 billion and another said we lost Ksh95 billion of taxpayer’s money. We find these allegations quite inaccurate, astonishing and maliciously calculated to injure KPC,” the MD said in his office.
Mr Sang insisted that in all transactions, the company followed due process, sought all the necessary approvals as set out in the Corporation Act, Public Finance and all other relevant laws. “I would like to state categorically that KPC does not condone corruption and Kenyans should rest assured that we are there to transform lives through safe and efficient delivery of petroleum products in Kenya and the region,” he insisted.
On the alleged replacement of pipeline that the company is said to have paid to a Lebanese firm Ksh18 billion, the MD said it was not true saying although the contractor lodged for extension of time claims for a total of Ksh18.9 billion, no amount has been paid so far.
“KPC is ready to provide all the information as far as these claims are concerned,” the MD said adding that when he took over management of KPC on April 2016, the project had commenced and was stuck at 11 percent completion and currently it is at 99.5 percent.
On capacity enhancement projects that saw new pumps fitted in Samburu, Manyani, Makindu and Konza to increase capacity and flow rate for line 1 pipeline from 440,000 litres per hour to 880 000 per hour, he said the cost of the project was Ksh9.6 billion and not 15 billion as alleged by the media.
The allegation of a loss of Ksh655 million for purchase of hydrant Pit Valves for Jomo Kenyatta International Airport (JKIA), Sang said is not true and that other than the initial 40 percent of the contract sum of Ksh256.3 million that was paid via a letter of credit dated March 3, 2015, no further money has been paid.
Mr Sang also clarified that the purchase of a 2 acre land from AMARCO Kenya limited next to the company’s headquarters was done procedurally.
The MD named other projects such as Kisumu oil jetty, the SINEDENT- Kisumu Pipeline, the alleged fuel theft, Fibre optic, SCADA, Composite sleeves, Ksh1.2 billion valves automation and the Ksh900 million Morendat pipeline training system projects were appraised and approved by the board.
“KPC remains have continued to exhibit stellar financial performance as indicated in the latest audited financial statements for the year 2017,” Mr Sang said.
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The MD said that the company was open to public scrutiny and that they will continue to partner with all relevant government agencies adding they will provide information as and when required by all stakeholders including the media.
For the last two days, the media had claimed that for the last three years, KPC could have lost Ksh95 billion and that 27 projects carried out in the last four years were riddled with irregularities.
