In what comes as a breakthrough for the Director of Public Prosecutions (DPP), a court in Nairobi has found three suspects guilty of various offences in the Kenya Pipeline Company (KPC) fraudulent procurement case.
The Milimani Anti-Corruption Court on Friday, January 24 found Fredrick Ogenga, Francis Omondi Obure and Beryl Khasinah guilty of offences related to the fraudulent procurement of hydrant pit valves, which resulted in loss of funds.
While delivering his ruling, Chief Magistrate Felix Mutinda Kombo found Ogenga, a Pocurement Officer II at KPC, guilty of abuse of office contrary to Section 46 of the Anti-Corruption and Economic Crimes Act (ACECA).
The court established that Ogenga improperly conferred a benefit on Allied Inspection and Testing Inc. by directly forwarding tender documents to the company, circumventing the approval of the KPC Tender Committee.
He was sentenced to pay a fine of KSh750,000 or, in default, serve 3 years imprisonment.
Additionally, Aero Dispenser Valves Limited and its directors, Omondi and Khasinah, were convicted of engaging in a fraudulent practice in a procurement contrary to Section 41 (1) and (4) as read with Section 137 (1) of the Public Procurement and Disposal Act, 2005, by submitting to the KPC a false CR12 Form dated 9th March 2018 purporting it to have been issued from the Companies Registry in support of the bid documents in respect of the subject tender.
The prosecution, led by Principal Prosecution Counsel Victor Juma Owiti, presented compelling evidence demonstrating that Ogenga abused his office while Omondi and Khasinah submitted a false document to win the subject tender.
“The convictions mark a significant step in the fight against corruption and the misuse of public resources. The court’s decision underscores the importance of accountability and integrity in public procurement processes,” the Office of the Directorate of Public Prosecutions (ODPP) says.
What happened?
KPC, in October 2014, wanted to replace 58 faulty Hydrant Pit Valves at the Jomo Kenyatta International Airport (JKIA) with new ones.
The KPC Board then passed a resolution that since the matter was urgent, the company would acquire the items via direct single sourcing from a U.S manufacturer – Cla-Val Company Limited.
The cost of the project was set at KSh59 million, which comprised of taxes amounting to KSh22 million.
But along the way, the goalposts were shifted. KPC never contacted Cla-Val and instead, the firm approached a Canadian company — Ms Allied Inspection and Testing Inc — which was charging a whooping KSh600 million for the same contract.
Reports indicate that KPC had already paid KSh254 million upfront when Ethics and Anti-Corruption Commission (EACC) noticed suspicious activity and stopped further payments.
Even more suspicious is the fact that Ms Allied Inspection approached Cla-Val, seeking to purchase the valves on behalf of KPC. The Canadian firm used a briefcase company based in Nairobi, M/S Aero Dispenser Valve Limited, as its front in supplying the valves at inflated costs.
