CAPTION: The high-priest of corruption William Ruto pictured here sharing a light moment with his disciples. It is said that all the money being looted at Kenya Pipeline, ends up at his Karen residence.
Fraudulent Loss of( 400,000,000 Million) to Thermodynamic General Supplies Limited at Kenya Pipeline Company in the Financial Year 2013/2014 (Procurement File Reference No. SU/QT566N/13)
KPC lost money from the above company based on evidence we have attached herein, which is credible and in the form of an internal audit that does not only focus on this one scandal, but others.
The above company (Thermo Dynamic) alludes to have a registered office at Gill house Room No.2. The said office does not exist. This was a briefcase company that was registered solely for this transaction and does not exist. KPC did not carry out due diligence to establish the physical existence of this company and its location. It’s not possible for any company to award a USD 4Million to a company without established premises. This company does not exist but just on paper.
Thermodynamic General Supplies limited does not have a website as they used Gmail address ([email protected]) see their official letter head and confirm the same. There is no company that can execute a tender of such magnitude which does not have an official website. Pointer that this tender was fraud. This was a briefcase company that does not have capacity. They have never paid any taxes and KRA are current searching for them.
Kenya Pipeline Company Limited had a budget of Ksh. 150,000,000(Million) to purchase composite sleeves in the year 2013/2014 but the management conspired to defraud the company so as to buy excess quantities thus ended up in spending ksh.300 million above the allocations. see scanned copy of the system SAP indicating that an LPO could not be raised due to inadequate budget. The screen shot shows budget over spent by over Ksh. 229,916,259 Million fact! This was purely fraud. Public Procurement and disposal act stipulates that a public entity can only procure what has been budgeted for. See also correspondences indicating how the fraud was hatched by current KPC top management.
Potential suppliers and manufacturers in UK and USA which are international companies requested for extension of tender opening so that they could quote which is allowed by law but this was ignored as the people involved as they knew that their brief case company would not compete. That’s another pointer to fraud.
One requirement for a bidder to be considered to be awarded the tender was financial ability to deliver items at KPC premises! That was a key and mandatory requirement! What happened in this case? After the tender was awarded the said company that quoted as a local vendor requested for a letter of credit with payments in milestones of 40% upon drawing of contract, 30% on raising of Bill of Lading and 30% on delivery. This was an absolute abuse of office. Why pay a local vendor with a Letter of Credit and why money was be paid before delivery of items. See copies of Letters Credit attached, See attached copy of request from Thermodynamic to KPC seeking Letter of Credit. It was objected by Chief Accountant but the Finance Manager who had an interest over ruled. Money was cashed at NBK Time’s Tower Branch Account No 01020014759500.
After contacting the suppliers in america we obtained prices thus confirming how items were inflated by over 1000% over and above the market prices resulting to loss of over 300 Million from inflations on this particular deal. This can be confirmed from manufactures contact [email protected];
Thermodynamic General Suppliers has never filled any returns with KRA. They were paid and did not submit VAT to KRA which was in excess of Ksh. 55,000,000 Million. Pointer to serious fraudsters. KRA is on there case and searching for directors who took off.
Find attached an internal audit report where it was raised by the internal auditors how public funds were looted. Top management with the board ignored this report and acted with impunity and suspended from duty the auditors who executed the report. That is the level of impunity at KPC. The scam involved senior managers at KPC and Directors. To be particular it involved;
Mr. Charles Tanui the then MD.
Director Felicity Birir – has protected staff involved at DPs office as she is behind the scam.
Mr. Samuel Mikwa Odoyo – Finance Manager Then now promoted to General Manager Finance.
Mr Philip Kimelu – Heading The tender Committee.
Mr Nicholas Gitobu – Current Procurement Manager.
Mr. Francis Amina Juma – Working with KPC the owner and supplier. He owns the company, Thermo Dynamic.
Mr Lamik Rotich Engineer with KPC who was Mr Tanuis PA at the time.
Mr Antipas Tirop- KPC staff part of the cartel who purchased a house at Adams Acade at 16 Million at the same time of this transaction.
Mr. Kelvin Amimo Chief Engineer corrosion who masterminded the entire procurement as the user.
The entire Tender Committee was involved.
Issues that should be addressed by KPC Board
The above issue was reported to both management and board of directors. Why has KPC management failed to institute thorough investigations and report the above issue to either the CID arm of police or EACC and KRA for action if they are not involved in the cover up?
Why has KPC board failed to suspend from duty the senior managers involved in this fraud who are in office today and have earned promotion despite this fraud?
Why did KPC management deploy and suspend from duty without pay the internal audit staff who conducted the audit and investigation of the above fraud.
Why did KPC management suspend from duty senior security investigator from duty based on malicious allegations that the whistle blower of the scandal (Cyprian Nyakundi) was a kisii and thus victimize him on tribal lines?
Why has KPC board disregarded the whistle blowers and protection act that guarantees safety and confidentiality of whistle blowers if they purport to know them?
Why did Mr. Abdi the EACC investigator who was transfred by the then EACC Chairman Philip Kinisu not charged for compromising the case?
Why has EACC failed to prosecute people to date despite having finalized investigations? The file is with EACC but they have failed to charge meaning money has changed hands.
Why should the KPC board not been disbanded for covering up this scandal and even suspending auditors from duty simply because information leaked.
Why has current board promoted all the perpetrators of this scandal?
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