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Jet Fuel Sold As Kerosene; Details On How Oil Managing Companies Work With KPC Staff Including MD Sang To Steal Billions From The Company



KPC MD Joe Sang

Following red flags in the system, DCI opened investigations into the alleged embezzlement of funds through theft by some oil marketing companies working in cahoots with Kenya Pipeline Staff By way of unapproved Fuel advancement to the OMCs.

This came at a time when Supplycor one of the KPC’s OMCs placed a loss of Sh1B to oil spillage and vandalism. This was acknowledged by the company’s MD Joe Sang who then took step to forward the bills to CIC Insurance Company.

The spillage volume and loss depth was not only exaggerated but opened a box of pandora on just how the OMCs collude with KPC to steal money from the public coffers. Private investigations were initiated as well to ascertain if indeed upto 11,000,000 of oil was lost to spillage and of losses registered were genuine.

Investigations proved that claims made were not only exaggerated but false as they couldn’t be supported by facts. “We’re of the opinion that the loses can’t be supported by facts. There also seem to be complicity in theft of product from KPC in cahoots with OMCs leading to a huge exposure.” Concluded the report seen by Kenya Insights.

The report in conclusion recommended further verification and auditing to completely clean up KPC and hold responsible the staff and OMCs involved in the scam. It is in this respect for further investigations that DCI summoned for questioning the following KPC staff suspected to be deeply involved in this oil theft syndicate;

  • Mr Joe Sang
  • Madam Filicity Biriri
  • Gloria Kafafa
  • Mr Samuel Odoyo
  • Samson Soimo
  • Antipas Tirop
  • Felix Relimoi
  • Pius Mwendwa
  • Francis Cherotich
  • Carol Kiplangat
  • Beatrice Ogutu
  • Mr Juma Amina

In the investigative report, it was determined that there’s an elaborate fraud scheme by the OMCs and KPC staff in the oil theft. Several schemes were detected.

Selling Jet Fuel As Oil

In establishing the cause, source and or nature of the loss, actions executed by players in causing the loss, investigators were deployed within terminus and JKIA compound. In an instance during the investigations, a bridger, cleverly not with active tracking device, was spotted at a petrol station in Mlolongo selling jet fuel as kerosene.

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Investigating Operations accounts procedures and part of airside at JKIA where the theft also plays. Investigators established that, there were missing Aviation Delivery Receipts(ADRs) and that KPC don’t have control of refueling at the airside leaving everything at the mercy of the OMCs. A disaster.

KPC lacks boundary meter to show actual volumes delivered at the airside leaving space for manipulation. Even though the report acknowledged loss of product, it established too that  OMCs were perpetuating theft of product at the airside which they had total control. Ideally, the OMCs are expected to present their ADRs instantly, they delay issuance sometimes for upto 24 hours probably to create time for manipulation in the theft schemes.

Loss through defective meters

Investigators monitored all pump overs to the OMCs with operations and shockingly discovered that despite no physical proof of spillage of oil, the OMCs continued to report loses as a part of the theft plots.

A huge disparity was noted between the ATG movements to the UFM meters and this how a scheme was unearthed. A KPC official liaised with OMCs to wrongly calibrate the meters a fraudulent plot that led to an average loss of 50,000L monthly. Money which goes into their pockets and those in the chain.

Loss through water drainage

Investigations following into an alleged water drain done in May 4th this year leading to a loss of 86 c.u M due to apparent water ingress opened yet again another scandal.

Staff who had claimed to have witnessed the drainage were found to be lying as it was established that none was present and neither entered the tank farm going to show the complicity in the theft. A deliberate effort was initiated by the staff to transfer the cooked loses from the drainage to the western line. Report recommended prosecutions of KPC staff involved in this elaborate scam.

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Discrepancy Between Physical Stocks And Book Balances

Despite the investigations acknowledging loses due to spillage and illegal connections, documentations couldn’t tally with the 11,000,000 loss declared going to prove a plotted scam.

Having been involved with the end of the year stock taking as of June 2018, investigations found that KPC seemed to be holding less physical stock in the storage than what the OMCs books were. As of 30th June, a check on physical stock and book balances, investigations found out that KPC was in the negative by 23,117,720 litres. The theft is in the books.

Pumping Water In Place Of Oil

Investigations found excessive water in the system in which it was established that companies in operation weren’t in full compliance with the line field requirements.

It was established that some KPC staff were compromised by OMCs to pump water instead of oil. The water pumped is then accounted as stock leading to more losses to KPC. There are ATG water detectors in all tanks such that water can’t pass through undetected, however, when pumping the water as oil, the detectors are strategically disconnected.

In summary, there’s elaborate scam by the OMCs To Steal Oil then place false claims of loss to get compensation from the insurance. It also doesn’t make sense as to why KPC should be covering the insurance and not the companies.

John Munyes the Petroleum and Mining CS has already received the report in a replying letter to KPC MD Sang he says, “the findings of this report seems disturbing noting its conclusions.” Despite having full knowledge of the scandal, the CS is yet to take an action on this theft instead dancing around the issue prompting our curiosity on this levels of his involvement in the chain given his jelly reactions. He either act on the report or come out clean. He can’t act only if he was a beneficiary, knowing Kenya, nothing can be surprising.

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Supplycor Ltd which placed a Sh1B loss is just hit one of the many OMCs, this is just a hint of the bigger syndicate now rope in the rest and see the billions being swindled. Why do the OMCs claim loss of oil that is in KPC’s custody, shouldn’t it be KPC noting the loss itself?

Curiously, these loses aren’t captured in the KPC’s annual financial report at least according to the latest that we’ve seen. These loses have become a norm year in and out yet things remain the same, it’s unclear what measures have been put on place over the years to avoid continually losing oil through spillage in order to stop claiming insurance every year.

Whats taking the DCI and the ODPP to arrest and prosecute this open theft that is costing the taxpayer billions annually. The DCI have the names of perpetrators who are not only walking free but still in office a matter that is disturbing given that the board has the mandate to sweep clean the office. The question is how long and how much more of theft orchestrated by management will it take for a serious action to be taken.

In the subsequent series we move to individual OMCs and how deeply involved they’re in stealing oil money with already named KPC staff and how money exchange hands including other players in the insurance companies. If you have any information in this respect and or any other valuable tip, email me ([email protected])

Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on [email protected] or via Telegram
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Lobby Group Wants Co-Operative Bank And Nairobi County Assembly’s Salary Deal Investigated With Corruption Red Flags Raised



Nairobi County’s Assembly.

A concerned city resident, Kelvin Njihia has written to the anti corruption body EACC and DCI to launch investigations into widespread corruption and impunity cases at the capital’s county assembly.

In a letter addressed to the two bodies, Njihia claims  there are serious integrity and public trust issues within City Hall. He alleges that the County assembly has gone against the set threshold by Salaries and remuneration commission restricting members not be in more than four committees.

According to his findings, most senior members in the board and their allies, have occupied more than four committees thereby contravening the law. The petitioner want members of the assembly occupying the extra committees to be investigated and prosecuted over corruption and the impunity displayed. He lists top officials flagged in his findings including;

  • Elias Otieno Okumu- 7 committees.
  • Esther Waithera Chege- 6 committees
  • Abdi Ibrahim Hassan- 6 committees
  • Peter Wahinya Njau- 5 committees
  • Peter Anyule Mwatok- 5 committees
  • Juliet June Ndegwa- 5 committees


Rest of the list

Besides, the concerned citizen coalition want the assembly to be probed as to how salaries of the members is channeled through cooperative bank contrary to the SRC’s directive and s contravention of county and national laws.

The petition also noted that the suspended County’s assembly clerk Jacob Ngwele who’s out of office over miss appropriation of funds still executes official duties despite the court’s directive. Ngwele in what the petition claims to be a contempt of court, recently invited public’s participation in approval of Halkano Dida Waqo as County’s Chief Executive Officer for ICT in what is flagged as one of many suspicious appointments.

The questionable advertisement signed by Ngwele on Daily Nation.

Ngwele himself was illegally appointed into office and being investigated for the same. Petition also want the commission to speed investigations and findings following the impeachment of County’s Speaker Beatrice Elachi.

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They want the Ethics and Anti-Corruption Commission to give updates on the Majority leader of the Nairobi County Assembly Mr Ibrahim Abdi Hassan who had been summoned by the commission over the City Hall clash pitting members against Speaker Beatrice Elachi.

EACC ordered Hassan to appear at the Integrity Centre on September 12, 2018 to record a statement that will aid in the investigation of members’ conducts. He’s alleged to have conspired with members in wider plot to oust the speaker. According to the petition, Elachi was kicked out due to her lack of corporation in fraud schemes hatched by the board members.

Petitioner wants the DCI to dive in and investigate why the county’s salaries are being channeled through co-operative bank and not directly from central bank to individual’s accounts in what is read with suspicions.

Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on [email protected] or via Telegram
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FRAUD: Bungoma County’s Nzoia Water Services Board Sneakily Attempts To Impose Kennedy Wekesa Kilali As The MD



Ag. MD Kennedy Wekesa.

Nzoia Water made an advertisement for open positions of Managing Director and Head of Internal Audit and Risk Management in daily nation dated October 23,2018 page 18 under anonymous company in western Kenya.

The following non conformities were noted which do not either conform with industry practices and approved operational HR Manual of the company as per the attached Advertisement:

1. The advertisement was only mentioning a leading water company in Western Kenya,excluding Kitale which falls in Rift Valley. Does it mean Kitale has separated from Bungoma and they have formed their own company? If not what is the effect of these on long term relationship with Trans-nzoia County?
2. The advertisement of MD’s position failed to meet the minimum threshold as per legal notice no.137 of 2012 which requires inviting the prospective candidates to have Masters Degree and registered members of respective bodies e.g  for Engineers should be registered with Engineers Registration Board(ERB) OR Institute of Engineers of Kenya ( IEK) and not Institute of Engineering Technicians (IET)  meant for Technicians who are lower cadre staff of the company.

The advertisement as it appeared on the dailies.

3. The requirements of chapter six was not observed in the advertisement which requires the prospective applicants to submit their chapter six compliance during the application as it forms part of shortlisting process and not to produce them during the interview.
4. The last advertisement through daily Nation were received without matching list from them,which resulted in most candidates who had applied not being shortlisted as their applications never reached the company’s offices. There’s no surety that the process will not be compromised in favour of specific candidates?
5. The Ag. Managing Director has failed to implement the inspection report by WASREB.(According to workers petition)
6. The advertisement should have been made either through the consultant or in the company’s name for it to attract competitive qualified candidates and not the way it is hidden as it is aimed to prevent competition and thus attract less applicants.
7. Therefore ,the recruitment process be stopped and the position be re-advertised in line with the above requirements.

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Ruto And Duale Buys Off Biwott’s Air Kenya Limited As Attempts To Exempt The Duale’s From KPC Prosecutions Revealed



Duale(L) and Ruto(R)

In Kenya, the more things change, the more they remain the same. Since the President intensified the fight and crackdown on corruption, we’ve witnessed arrests and ongoing prosecutions but at the same time, new scandals continue to crop up.

President announced a lifestyle audit on public officers and we’re yet to see the full implementation, however, we’re aware of ongoing money laundering schemes where ‘smart’ public officials including those in executive, are desperately laundering their ill acquired wealth before the lifestyle audit bell is hit.

Talking Of wealth, reports reaching Kenya Insights allege that DP and Duale jointly bought off Air Kenya Ltd previously owned by the late Biwott in what we’re told was a cool Sh1.8B deal sealed about two months ago. According to a source, the ownership is based on a 50/50 agreement between the two.

Air Kenyan is  now registered under Focus Aviation Mauritius and the Directors are Abdulaziz Aden (Duale’s son) and Adil Khawaja ( representing William).

Away from that, Kenya Pipeline is proving to be a hard not to crack for the DPP, for a parastatal with endless scandals, many have been wondering what’s taking Noordin too long to press play on his reggae playlist. But you’ll have to wait a bit longer, KPC comes with heavy political baggage.

Duale and Abdul Duale are heavily implicated in the KPC mess a detective source intimated to Kenya Insights. Joe Sang, the company’s MD who’s whole body deep in the murky scandal world will not go down without the Duale’s we’re told to show the levels of complexity in the case. Sources at DCI say that there have been open threats by the Duales and told that they had seriously invested in the government and that they are untouchable.

There’s a developing narrative that the DPP is delaying prosecutions yet the DCI have concluded their investigations on the KPC corruption. This one case that comes with political ramifications and questions are arising whether the DPP who happens to come from the same region with the Duale’s is hesitant on the consequences.

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”Touching Duale Family is a direct attack on WsR. That is a live wire.  Infact Dualle son Abdul is so close to Joe sang and Keter. DPP Knows touching that file is war.” Says a source privy to the investigations.

DCI uncovered transactions amounting to hundreds of Millions between Abdul Duale and Joe Sang’s cousin Hillary. When both parties we queried what the transactions were for they both claimed that it was not a crime to give money to friends.

“Chief architects of tender fixing at KPC are the Duale boys, they are so entrenched at KPC that even removing Joe Sang wont affect their activities.” Said another source speaking to KI. He continues, “KPC is a chess board for WSR and the Duale’s. At times they are united in Looting however sometimes they clash and fight bitterly when things don’t go their way. Duale’s are cunningly smart and share what they steal with management but for WSR its me, Myself and I. Thats what is going to finish WSR. His selfishness Unmatched.”

Abdul Duale is said to be the father’s right hand man. His finger prints all over state parastatals. At KPC they are involved in
1. Fibre- total was 1.8B
2. Devolution of KPC – 200M given to them. There was a big war between them and WSR over this.

3. Industrial area land was bought by a Company called Focus Logistics( Director is Abdulaziz Aden) at 150m and later sold to KPC at 600m 3 months later
4. Security consultancy. Awarded to Optilan UK and Black hawks eye (Aden duale and Abdul are Directors) value was 800m.

Mid November 2015 a meeting was called by One Abdul Duale ( Son of Aden Duale) at boma hotel. In attendance was Faith( Director KPC), Felicity Biriri( Director KPC), Joe sang (AG GM Finance then). The agenda was lack of control in KPC. The cartels had lost control as Previous MD Charles Tanui was sacked after Corruption allegations and his replacement was Mrs Florence.

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At this meeting of this 4 individuals a plan to oust was mooted. They had 2 Directors on their side already. Joe sang said he would convince Jerry and Neepee ( also Directors). The Kalenjins tasked Abdul Duale to Onboard John ngumi (Chair KPC) with whom they enjoyed a Cordial relationship.

A board meeting was subsequently scheduled 1 day before the Christmas holidays so that no eyebrows would be raised. In a Span of less than 1 hour Florence (Ag MD KPC) was ousted and replaced with Joe sang in Acting capacity. Mr Director kindly check the visitors book and Examine CCTV footage on 23Rd December 2015 at exactly 2:31 till 4:00pmYou will notice that Abdul Duale personally supervised the removal of Florence (Ag MD). Cctv footage from security will help you.

Abdul Duale was a close ally of Charles Tanui and often sat at the negotiating table for kickbacks on behalf of Tanui. When tanui left he became an orphan. Ag MD Florence had blocked all his contracts. Works were stopped and payments stopped also. He would visit Charles Tanui every other day probably to brief him on matters kickback.

After their successful mission to replace Florence the Cartel rejoiced and celebrated for days. Fast forward January 2016 Joe Sang os in office and alll cancelled contracts were reinstated. To begin with their was a Tender for Rehabilitation of the Nairobi – mombasa Pipeline that was awarded to The Duale family via Proxy during the Tanui Reign. It was Awarded to Center star Ltd. Amount was 490M. Florence (Ag MD) cancelled it after several issues were raised on the shell company.

The company had no experience for the sophisticated job that was to be undertaken. Mid January 2016 Abdul duale pushes for the reinstatement of the contract. Joe sang instructed the Mechanical team to reinstate it and he signed it off. A Kickback of 20M was delivered at Intercontinental Basement.
joe Sang -6m
Faith and Felicity 6m
Legal – 2M

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The Cartel at KPC needed political protection and someone who also allowed them to eat unlike the DP who offered them protection but never allowed them to eat. DP would eat alone forgetting the team always. Political protection came via the Duale Family. Aden Duale and His son Abdul would protect Joe Sang from EACC, DCI and parliamentary Committees. In Return Joe Sang would be paying to the Duale family via Kickbacks.

The duales also provided the KPC cartel with money laundering options often charging them upto to 20% of the looted proceeds

1.Fibre Optic Cable

The Budget for this project was 300M. Joe sang gave instructions 6 months before the tender was advertised that this One belongs to Aden Duale. Duale and Son setup a Shell company and partnered it with JV of Express Automation.

All bidders quoted less than 300M including ZTE. Express Automation/white space quoted 880M. 500m Above the budgeted amount. The tender was marred by threats of deportation to ZTE from abdul duale if they ever appealed.

Beneficiary of the Kickbacks
Keter and PS – 100m
Joe Sang -20M
Lamek Rotich and Evaluation team -10m
Vincent Cheriyout – 1M

It will be a Futility if the political engines are not touched in cleaning up the KPC mess. As it stands, the political weight on KPC corruption continues to take toll as reports point at s conflict in the sense that both Ruto and Uhuru’s allies are swallowed into the multi billion theft at the oil courier. Kenyans are keen to see how the DPP will handle this case.

Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on [email protected] or via Telegram
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