Management battles facing the Kenya Pipeline Corporation takes a new dimension this morning when the board meets to discuss the conduct of the managing director Joe Sang, who has been accused by the chairman, of running down the institution.
The meeting under KPC board chairman John Ngumi, will discuss alleged corruption within the corporation and reports of theft of petroleum products in some parts of the country.
The meeting had been scheduled for yesterday, but Ngumi postponed it to today in what was seen as plot to have more time to lobby members on the suspension of Sang.
The corporation is also under probe by two parliamentary committees over the manner in which KPC secured a Sh35 billion loan for the new Mombasa-Nairobi pipeline expected to cost in excess of Sh50 billion.
Ngumi and Sang have been reading from different scripts on the issue of oil spills with the former claiming the state corporation has lost about 23 million litres of fuel worth Sh2.3 billion from spillages. Ngumi claims that although the Sang management insists the oil was lost through spillage, there is no evidence to prove it.
Ngumi and his team claim that some crooked KPC officials have been running a racket that cooks books to overstate the amount lost from leakages, which are then recorded as spillages. This way, millions of litres of fuel are later stolen and sold illegally.
More is also stolen through the bogus recording of gain/loss of 0.25 per cent of all the fuel delivered in Mombasa, which the industry has always agreed on.
But sources within KPC have discounted Ngumi’s claims, instead accusing the chairman of waging a silent war against Sang with whom he has had a frosty relationship.