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Supply Chain Risk

KPC staff ordered to refund Sh182m in tender fraud case

The Ethics and Anti-Corruption Commission (EACC) has demanded that two senior Kenya Pipeline Company employees personally pay back Sh182 million alleged to have been fraudulently paid for a contract.

In the letters sent to the general manager for Finance Samwel Odoyo, Mikwa Owuor and procurement officer II Fredrick Ogenga, the EACC has demanded that they refund the money, paid by KPC to Aero Dispenser Valves Limited, with interest. The watchdog claims that the money was irregularly paid for procurement and award of Tender No. SU/QT/3264F/14 for hydrant valves.

The two letters were received by Odero Osiemo and Company Advocates on December 3, 2019.

“We hereby demand you pay a sum of $1,761,813.53 (approximately Sh182 million) together with interest thereon … Take notice that unless the said sum is paid to the Commission within seven days of this letter, we shall institute recovery proceedings against you without any further reference to you and at your own risk as to costs and any other incidental expenses arising therefrom,” one letter reads.

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