By NLM Writer
A Directorate of Criminal Investigations (DCI) officer leading a probe into the irregular purchase by Kenya Pipeline (KPC) of a parcel of land was transferred a week after interrogating the sister-in-law to Inspector-General of Police Joseph Boinnet.
This is the second time in a year the detective has been transferred while at the critical stage of investigations into several KPC fraud cases in which the IG’s sister-in-law is a suspect.
The detective identified as Police Constable Patrick Shiundu, formerly of the Flying Squad, had been transferred to Turkana as he was finalising investigations into Sh647 million pay-out for hydrant pit valves by KPC to Aero Dispenser Ltd.
He had interrogated several suspects and, just before he could file his report, was transferred to Turkana during the reign of then DCI Francis Muhoro. The file was subsequently closed.
When the current DCI Boss George Kinoti took over, the detectives was recalled from Turkana because of his deep understanding of the KPC investigation, and assigned to a special projects team under the Investigations Bureau (IB) Branch where he has been since.
He had interrogated most of the KPC senior management and board members, including embattled former managing director Joe Sang, Felicity Birir, Faith Boinnet, John Ngumi (KPC Board chairman), Solomon Odoyo, Jane Nakadony among others and was scheduled to interview a Cabinet Secretary when he was asked to hand over the almost complete investigations file, and transferred to Garbatulla.
Prior to the transfer, armed men had broken into his Donholm Estate residence on December 30, 2018 and stole several flash discs and documents in the hope of recovering the investigation file. The burglars did not carry away any electronic goods from the house as would have been expected.
Investigations into the land saga have since stalled.
Requests by the Nairobi Law Monthly to have Boinnet, who is due to retire this month, went unattended.
The detective was investigating the purchase of 1.9242 acres of land parcel Number LR 209/8618 along Industrial Area’s Nanyuki Road purchased from Sanyo Armaco (K) Limited through their agent Koome Kiragu trading as Leome Properties.
According to records seen by the Nairobi Law Monthly, after conducting a Risk Assessment survey commissioned by KPC, the General Service Unit (GSU), in its report submitted on December 11, 2011 recommended that the company acquire properties surrounding the KPC headquarters and PS 10.
“Adjacent to the Kenpipe Plaza and Sekundi Road and fronting the Nanyuki Road is the above referred property. KPC proposes to purchase the said property from its owners in order to minimise potential threats to KPC,” an internal memo reads.
Ethics and Anti-Corruption Commission (EACC) had on July 17, 2014 written to KPC requesting for information on the transaction and advised the company to delay the purchased until the anti-graft agency conducted its investigations.
On November 28, some four months later, the Commission advised KPC to proceed with the purchase on condition that it engages an independent valuer and establish the correct market price for the property.
The National Land Commission (NLC) in a February 12, 2015 report, established that the land had been charged to I&M Bank for Sh100million on July 7, 2011 but valued the land at Sh550 million.
KPC’s Technical evaluation report of February 2015 had put the value according to the only bidder at Sh650 million although the project budget cost of 2014/2015 had a provision of Sh515 million for that period.
The corporation paid the money through a lawyer.
However, due to the long delay caused by the EACC probe, the vendor wrote to KPC withdrawing from the purchase of the land therefore nullifying the initial offer for sale of agreement and vendor.
A letter from the Ministry of Energy then advised KPC to re-initiate the deal in accordance to the law, but the company’s management went back to the vendor without tendering and proceeded to pay the vendor without following procedure.
Other fraud investigations by DCI into KPC include the payment, on July 14, 2017, of US$1,873,847 (Sh187,386,400) into Vendor 0000103468, Oilfields Engineering And Supplies Ltd.’s National Bank of Kenya, Wilson Airport Branch account number 01020111151700 for the actuators.
The ODPP had recommended to the DCI to initiate fresh perusal of investigation files into seven companies that allegedly conducted business with KPC.
In his letter, reference CID/SEC/4/3/1 VOL. XXXIV/161 dated June 2, 2018, addressed to the Director of Public Prosecutions Noordin Haji titled “Massive fraudulent activities by John Huba Waka, Beryl Aluoch Khasinah and Francis Juma Amina at the Kenya Pipeline Company Limited,” the DCI Director George Kinoti requested the DPP to review afresh the evidence compiled by the investigating officer.
DCI detectives had previously investigated seven companies namely Thermo Dynamic General Supplies Limited, Nairobi General Supplies Limited, Embridge Engineering Limited, Sealing and Seals Limited, Boiler and Petroleum Piping Systems Limited, Aero Dispenser Valves Limited and Trans Africa Pipeline Engineering Company Limited along with their directors Francis Amina Juma, his nephew John Huba Waka and wife Beryl Aluoch Khasinah be charged with fraud of hundreds of millions of shillings.
“It is worth to note that the said fraud was being investigated is the same saga that is bewildering the Kenya Pipeline Company before the Parliamentary committee touching on grand corruption and all these companies were mentioned. It is in this aura or illusion of trying to subdue the truth from being revealed through investigations that the cartels were out to malign the name of the investigating officer and thwart the investigations by all means possible. In a nutshell, this case involves huge sums of money, suspected to have been stolen from a government entity… With a view of the above, there is overwhelming evidence against the suspects and therefore I request for the case to be reviewed afresh by the DPP himself for a second opinion with a view of charging the suspects, including Mr Nyandieka jointly for forgery and allied offences at the Kenya Pipeline Company,” the DCI’s letter to the DPP reads.
Implicated in the fraud is lawyer Nyandieka of Nyandieka and Company Advocates, who is said to have helped the suspects to register the seven companies involved in the multi-million shilling payments from Kenya Pipeline Company in various tenders.
The Ethics and Anti-Corruption Commission (EACC) and the Parliamentary Committee on Energy are investigating the alleged fraud at KPC. (