Industrial-Scale Looting: Kenya Pipeline 1 Billion Scam Exposed

Hello Cyprian,

I do salute you after realising that you are one very honest and a person out to make Kenya a better place and not an extortionist like Robert Alai who only accesses information to gain personally either through black mail or otherwise.

I wont reveal my real names as of now but in the near future I will. I want to give you documents and evidence showing how money was lost at Kenya Pipeline Company through fraudulent activities so that you can bring it to the attention of Kenyans. I have been previously sending emails to you but now have attached copies of documents so that you can publish, to back-up my claims of fraud at Kenya Pipeline Company.

Loss of Kshs. 400 Million To Thermodynamic General Supplies Limited

KPC lost money from the above company based on evidence I have given you.

The above company alludes to having a registered office at Gill House Room No. 6. This office does not exist and that’s a fact anyone can verify for themselves. For anyone who know Gill House in downtown Nairobi next to the matatu terminus, there is no firm that can be located there and be able to handle contracts of this magnitude.

Just interrogate them and clarify if a briefcase company without an established office or premises can secure a tender worth 4 million US Dollars. No due diligence was done and this transaction is purely fraud to draw money from KPC.

Thermodynamic General Supplies limited does not even have a website and they are using GMail address as you will see in the scanned documents.

KPC had a budget of Kshs. 150 Million to purchase composite sleeves but management conspired to defraud the company so as to buy excess quantities thus ended up spending more that Kshs. 300 Million above the allocations for the year 2013/2014 see scanned copy of the SAP System indicating that an LPO could not be raised due to inadequate budget. The screen shot shows budget over spent by over Kshs. 299 Million.

This was purely fraud. A potential supplier or the manufacturer in UK M/s Clock Springs which is an international Company based in UK requested an extension of tender opening so that they could quote. This was hastily ignored as the fraud stars knew that they could not compete with them (see scanned copy on email and communication from Clock springs UK seeking tender extension which was ignored that’s evidence).

The Kenya Pipeline Company management and tender commitee made sure only 2 local companies without ability to provide the composite sleeves were part of the tender to avoid competition.

That was daylight robbery. One requirement for a bidder to be considered for the tender was financial ability. That was a key requirement. What happened in this case? After the tender was awarded to Thermo Dynamics that quoted as a local vendor, it later requested for a letter of credit with payments in percentages of 40% upon drawing of contract, 30% on raising of Bill of Lading and 30% on delivery.

This was absolute abuse of office. Why pay a local vendor with a Letter of Credit and why should money be paid before delivery of items?

(see copies of LCs attached and also also attached copy of request from Thermodynamic to KPC seeking a Letter of Credit).

It was objected by Chief Accountant but the Finance Manager who had a vested-interest over ruled it. See all attached copies of this was heist.

Money was cashed at NATIONAL BANK OF KENYA Times Tower branch (see account number in the Letter of credit).

Money was paid before delivery of items. (see attached goods inspection certificate indicating the the sleeves had an expiry period of up-to 22nd July 2015).

Items with a value in-excess of Kshs. 250 million have expired today and they are lying idle in KPC go-downs, a matter that can be readily confirmed with the audit manager OR KPC Board. I will provide you with the prices from wrap Masters USA and compare with the prices from the local agent then you’ll see the prices were inflated by Kshs. 300 Million. This was a total loss for KPC and the country (see LPO attached and prices from the manufacturer, see also attached Tender Committee minutes approving the same for your comparison).

This was theft of public money which is more than even the youth fund heist orchestrated by Bruce Odhiambo.

And to know how impunity works, all people involved in the deal have been promoted so that probably they can undertake more theft in future. Mr Samuel Dodo, promoted to General Manager Finance, Mr Philip Kimelu promoted to General Manager Technical, Mr Charles Maitai promoted to Chief Engineer Mechanical, Mr Kelvin Amimo promoted to Chief Engineer corrosion and Control, Mr Fredrick Ogenga promoted to Senior Purchasing Officer.

Kenya Pipleline Company is openly telling Kenyans that EACC, Keriako Tobiko and Julius Boinnet cannot take them anywhere because they are in their pockets. This is how deep impunity has sunk in Kenya.

All these are fraudsters should be at Kamiti Maximum Security Prison, not occupying positions at KPC.

Can you ask KPC chairman if he only suspended Mr Stanley Manduku because he was against these industrial-scale heist?