Kenya Pipeline Company could have lost millions of shillings due to depreciation of hydrant pit valves which remained unused for the last four years after they became subject of investigations.
The valves, which are used to fuel aeroplanes at airports, were delivered in 2015 but were not formally received in the KPC stores because the Ethics and Anti-Corruption Commission (EACC) was probing their purchase.
Most of the items could have been spoilt after long time of disuse and the company might have to procure fresh ones to replace them.
Appearing before the National Assembly Public Investments Committee (PIC) to answer to audit queries raised by the Auditor General, company managing director Joel Sang said the items remained uninspected and were not formally received even after they were off-loaded within KPC premises.
Asked by the committee chairperson Abdulswamad Nassir if the company had calculated the losses which had been incurred as a result of depreciation of the items, Sang said the process was yet to be undertaken.
“We have in the last years continued to engage and appeal to EACC to hasten their investigations to close the matter. We have also sought the help of the ministry of Energy and Petroleum on the same through various correspondences,” he said.
He said the anti-graft agency finally allowed the corporation to install the valves on January 9 after undertaking a joint stock take to confirm their physical presence.
“EACC granted KPC the authority to utilise the procured items to avoid possible loss of public funds as they continued with investigations whose outcome is still awaited,” he added. The company awarded a Sh655 million contract for the supply of hydrant pit valves and two-year operational spare parts, to a company through direct procurement, contrary to the requirements of the Public Procurement and Asset Disposal Act.
Although the United States based company was reportedly invited to bid for the tender on the basis that it was the original manufacturer of the equipment, no documentary evidence was produced.