FORMER KPC BOARD MEMBER SAYS SH 2BILLION LOAN WAS NOT APPROVED.

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Former Kenya Pipeline Company director Shem Odongo Ochuodho and director of Triple A Capital Ltd, Theresia Wanjiku alias Terry Wijenje before Nairobi Anti-curruption  court during the hearing criminal case against them.

BY NT CORRESPONDENT.

Former Kenya Pipeline board Member has told the Nairobi Anti-corruption court that KPC board did not approve the borrowing of 2 billion from Triple A Capital Limited in a case which former pipeline director Shem Ochuodho is charged conspiracy to over 800 million.

Engineer Caleb Olall was testifying in a 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.

in his evidence in chief Olall said company board did not direct the management to put aside funds for payment of the same.

“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,”said the witness.

He also said that the KPC management did not follow 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.

He said during the entire period when discussion on Triple ” A” Capital Limited funding were ongoing on, there was a lot of acrimony, bullying of Board Members by the Board Chairman and the managing Director. This would be sometimes extend to threats of sacking.

“He told the court that, if you disagreed with appointing authority you could be sacked anytime”. Said Olall.

He further said that, no further presentation from KPC management or discussion arranged for the board regarding the borrowing arrangement until when the Permanent Secretary Energy called special Board Meeting to discuss the same.

” 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 “, he said.

However, he said the Board made a blanket approval for the funding on strength of the approvals already obtained from the minister for finance and minister for energy, the fact that the contract documents had already been okayed by the attorney general’s office and further that other documents like cash flow had been submitted to ministry of energy.

Mr Caleb told the court that, due to lack of proper of board at KPC for sometime, he personally addressed the note to the Inspector of State Corporations on the matter.

Prosecution alleged that on diverse dates between May 2003 and July 2004 in Nairobi Ochuodho jointly with other board member’s conspired to defraud Kenya Pipeline Company Limited (KPC) Kshs, 827, 564, 608,20 by entering into a refinancing arrangement which required KPC to pay Triple A Capital Limited Credit charges amounting to Kshs, 827, 564,608,20 on account of Triple Capital Limited paying KPC’s international Creditors amounts owed by KPC , whereas Triple A Capital Limited had no money to pay the said creditors.

Those charged alongside him are the chairman of the board directors of KPC and Directors of Triple A Capital Limited Maurice Dantas ,John Gichia Macharia and Janice Theresia Wanjiku Kiarie alias Terry Wijenje.

Dr Shem Odongo and Maurice Dantas are accused being employed by Public service as Managing Director and Chairman of the board directors of Kenya Pipeline Company respectively and whose functions concerned the administration of public property jointly and fraudulently instructed the standard chartered Bank of Kenya to pay Triple A Capital limited Kshs, 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.

Hearing to resume February next year

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