Plans for Kisumu Oil Jetty started in 2005, Ngumi tells court

KPC board of directors chairman John Ngumi says the Kisumu Oil Jetty project had been in plans since 14 years ago. 

Ngumi told senior principal magistrate Victor Wakumile that the project was in the company’s plans since 2005 and had been part of the company's Strategic Vision 2025. 

The project once completed would reduce transportation cost of petroleum to Uganda, Rwanda, Burundi and Eastern DRC, he said.

He added that it would further eliminate fuel adulteration, meaning Kenya would get back lost export markets. 

He spoke on Tuesday while being cross-examined by the defence in the case where former MD Joe Sang has been charged alongside five others with economic crimes related to the Sh1.9 billion project. 

Sang is charged alongside Kenya Pipeline Company secretary Gloria Khafafa, supply chain manager Vincent Cheruiyot, infrastructure manager Billy Aseka, procurement manager Nicholas Gitobu and finance manager Samuel Odoyo. 

The board chair also confirmed to the court that the board approved the supplementary budget of Sh1.4 billion that had been forwarded to them by the management. 

However, he said, they approved an additional Sh500 million. 

At the time, he said, they did not have any misgivings on the project, adding that if anyone noticed anything wrong with it, they would have flagged it. 

The court heard that the board approved the supplementary budget on August 10, 2016, being the only thing they did in relation to the project.

Ngumi said when the project came up in 2015, Sang was working in the finance department and was not an MD. 

The court also heard that KPC management told the board that Line 6 was operational in April 2016.

Ngumi said the project was initially presented to the board's finance committee chaired by Faith Boinnet in 2016, but the presentation was done by the management.

He said at the time, what was presented was the proposal to finance Line 6 with the supplementary budget and at that there was no much discussion on the details of the project.

“The project is completed as advised by the management. The handover ceremony from the contractor to KPC was in 2018,” Ngumi's evidence reads.

Sang and his co-accused have been charged with abuse of office and engaging in a project without prior planning.

It is alleged that between July 1, 2016, and June 30, 2017, at KPC headquarters in Nairobi, they engaged a project without planning by approving the construction of the Kisumu Oil Jetty which gobbled up Sh1,963,065,422. 

Edited by R.Wamochie 

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