Sh 2B loan to KPC was not approved, says former board member


A former Kenya Pipeline Company board member has told a Nairobi Anti-corruption court that the company board did not approve the borrowing of 2 billion from Triple A Capital Limited.

Engineer Caleb Olall was giving his testimony in a graft case where former Kenya Pipeline Company Managing Director and Homabay senatorial candidate Dr Shem Odongo Ochuodho is charged With conspiring to defraud the company over shs 800 million.

He also accused KPC management of not following the proper procedure in securing the said loan since they were communicating and seeking approval from the Ministries of Energy and finance before exhausting the board process and before getting the full board approval.

“The company board did not direct the management to put aside funds for payment of the same,” testified Olall.

It was his testimony that during the entire period the discussion on Triple ” A” Capital Limited funding were ongoing on, there was a lot of acrimony and bullying of Board Members by the Board Chairman and the managing Director.

“I have been shown a certified copy of the said minutes but wish to state that they are not reflection of our discussions. It is in my view that the said minutes could have been doctored,” he testified.

He said the board was never given the terms of the proposed borrowing or any bids/evaluation report to adjudicate. This is despite several requests by the board members of KPC management.

Ochuodho is charged alongside KPC board directors Chairperson Maurice Dantas and Directors of Triple A Capital Limited John Gichia Macharia and Janice Theresia Wanjiku Kiarie alias Terry Wijenje.

The officials are charged that on diverse dates between May 2003 and July 2004 in Nairobi conspired to defraud KPC Sh 827, 564, 608.20 by entering into a refinancing arrangement which required KPC to pay Triple A Capital Limited Credit charges amounting to the above on account of Triple A paying KPC’s international Creditors amounts owed by KPC , whereas Triple A Capital Limited had no money to pay the said creditors.

Ochuodho and Dantas are also accused of fraudulently instructing the Standard Chartered Bank of Kenya to pay Triple A Capital limited Sh 1, 250, 577, 549 from KPC ‘s account purporting it to be a refund on account of Triple A Capital limited having paid a similar sum to KPC’s International Creditor, Export Development Canada (EDC) yet no such payment had been made by Triple A Capital limited and on behalf of KPC to EDC.

The hearing will continue in February 2019.