EACC chief Executive Officer Halakhe Waqo has reported evidence that Kenya Pipeline Company defrauded the public in the purchase of
aircraft fueling equipment.
Waqo on Tuesday gave a report to the
National Assembly Departmental Committee on Energy, amid investigations into
KPC's
procurement of Hydrant Pit Valves (HPVs),
the equipment used for refuelling aircrafts.
The company resolved
on December 9 2014
to acquire the hydrants directly from the manufacturer, Cla-Val Company.
It allegedly procured the equipment at Sh660 million yet their
estimated value was Sh59 million. The payment was about
1,010 percent over market value.
The CEO said he will recommend criminal charges against culprits and the recovery of about Sh200 million.
He said KPC will not pay the difference since individuals will
be held accountable.
“The bulk of the money was withdrawn in cash. We are however following bank transfers and analysing the processes further," he said, adding all stakeholders will be involved.
Waqo also said they recovered critical documents when
they searched the premises of the suspects
.
He added that they were still analysing reports by Canadian and American
authorities which are part of the probe.
The EACC boss noted that the equipment
had never been in EACC custody and were still at the KPC's premises.
He noted, however, that the HPVs met quality specifications and admitted that KPC needs better equipment at the Jomo Kenyatta International Airport
in Nairobi.
The investigations have been taking place for three years.
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