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Investigations

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

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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])


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Investigations

The Making Of A Suicide Bomber, Former Al Shabaab Fighter Reveals Behind Scenes

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Moment Mahir then Dusit suicide bomber blew himself up.

Mahir Khalid Riziki was the suicide bomber who blew himself up at the Dusit hotel attack by terror group Al Shabaab in Nairobi that left 21 civilians dead.

In a rare CCTV footage that has been doing rounds, the attacker can be seen walking and standing strategically outside Secret Garden Restaurant While in communication with his colleagues who were on standby before blowing himself up and body parts seem flying away.

What had many people wondering is to how much one has to be radicalized to the point of offering themselves as suicide bomber. Mahir can be seen in the video looking a bit nervous seconds before the explosion pointing at a fact that he must have been hit with reality of a painful death.

Just how did it get Mahir to get from attending madrasa at Musa mosque to killing security officials before eventually escaping to Somalia where he joined the militia group and was trained to become a suicide bomber since 2016 and only crossed over to Kenya for his final mission.

In a post Dusit attack interview, an. Al Shabaab returnee only identified as Musa, opened up to tell what exactly happens behind the scenes that many don’t know. The terrorist groupie has been on s recruiting offensive charm mostly targeting to recruit Kenyans of non Somali decent whomeasily penetrate dragnet.

Musa told CNN that he positively identified Ali Salim Gichunge from the CCTV footages as amongst the attackers, this is perhaps is the first public evidence that links the Kenyan attacker to Somalia. Musa said Gichunge was a member of the feared Amniat, al-Shabaab’s internal security service, and that he met him in Baidoa, central Somalia, in 2012.

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Musa who now leaves in fear of attacks from Al Shabaab and police, says he has survived assassination attempt when gunmen were sent from Somalia to eliminate him for disloyalty and defection. Having been in Somalia and trained, he certainly holds much intelligence on their operations. “I was shocked. When I saw the CCTV I said ‘I know that guy!'” Musa told CNN in an exclusive interview.

 

Mahir Riziki the Dusit suicide bomber.

According to Musa, many of the most radicalized al-Shabaab volunteers were fighters who had converted from Christianity, he added, including Gichunge.

 

He reveals that on joining the terrorists camps in Somalia, one is subjected to thorough interrogation, in his instance, he says Gichunge was amongst them. “They’ll eat with you but they are just interrogating you: ‘How do you love al-Shabaab? How did you come here? Why did you join al-Shabaab?’ Those who fail to pass this phase are jailed for months if lucky or worse like getting killed.

 Brainwashing a suicide bomber

Musa’s experiences reveal the extent to which “brainwashing” by al-Shabaab continues after volunteers have been smuggled into Somalia and offers a rare insight into the methods the terror group uses to instill absolute loyalty among its followers.

Speaking in a secret location in Nairobi with CNN, Musa said he had taken part in the decapitation of a prisoner of war.

 He was part of group that took turns with a knife to saw at the neck of the victim — a tactic used by the terror group to ensure everyone’s involved in the crime.

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 “That’s part of the brainwashing,” he said. “They told us it’s part of the training.” He said he was then ordered to “surround the head, kick it like football and pass it to another person.” Basic military training is reinforced by involuntary collusion in atrocities.”It’s to reduce fear in you,” he added.

 Musa told CNN that suicide bombers go through a rigorous selection process. New recruits are asked explicitly if they want to volunteer to “blow yourself up.” Those selected are then taken away from the main group and indoctrinated for at least a year with daily Quranic studies, lectures by a “sheikh,” and intense physical and military training.

 While in Somalia, he met fighters from several western countries as USA, Britain and Australia with most of them totally brainwashed and praying for their days to be offered permission to return to their homes and launch attacks.

 The former al-Shabaab fighter had a grim warning.

“Everyone wants to come and do something like [the] Dusit [attack] but they have not been given the chance … given the chance, they will come.”

 Adopted from CNN


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Investigations

Riverside Suicide Bomber Was Recruited At Masjid Musa Mosque And The Tactical Error He Made That Saved Many Lives

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Mahir Khalid Riziki

Kenyans we’re left in shock after the CCTV footage showing the moments when the Dusit first attacker blew himself up, in what seems to be the first suicide bombing mission in Kenya.

The bomber can be seen walking and standing outside the Secret Garden Restaurant seconds before detonating. He seemed unsure of his steps and while ordinarily, it would be expected he blow himself up in a crowded place, the attacker blew himself up outside.

Intelligence officers have now identified the attacker as Mahir Khalid Riziki who apparently has been on ATPU radar since 2014 where he was amongst the many youths charged with killing officers in Coast. He was recruited into Al Shabaab by Ramadhan Hamisi Kufungwa while attending prayers at Masjid Musa, a mosque that has been accused of radicalizing faithfuls and recruiting for Al Shabaab.

Mahir’s ID

Masjid also happens to be where the radical cleric Abud Rogo who was fell by police bullets and accused of being an Al Shabaab operative and used the Masjid mosque to recruit youths into the terrorist group in Mombasa.

In 2015, Hamisi fled to Tanzania after the police circulated his image as a wanted criminal, he would later confess to his family of joining Al Shabaab before moving to Somalia.

He had been under training in Somalia until Mahir, according to detectives, sneaked back into the country last week, through Elwak in Mandera county then to Takaba and boarded a Moyale Raha bus in Marsabit town heading to Nairobi.

He then moved to Guango estate, Mucatha in Kiambu county where the attack ring leader Ali Salim Gichunge resided, and received instructions on his role in the 14 riverside drive attack.

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On the attack day, Mahir arrived at the scene ahead of his team and was in touch with Gichunge who was the operation commander and was to take position inside the restaurant, blow himself up, kill as many and the blast to signal the assault team positioned outside and kill civilians fleeing.

According to intelligence, a time disconnect and tactical failure by Mahir led to saving of many lives. The initial plan apparently was for him to detonate from inside and not outside for maximum casualties.

“The attack strategy was for him to detonate his suicide vest to kill people at the Secret Garden restaurant and signal incoming attackers. Then, as people scamper for safety towards the main entrance of Dusit complex, the other four attackers were supposed to embark on a killing spree targeting the fleeing crowd,” a source said.

Moments when Mahir blew himself up.

Mahir fortunately blew himself up at the wrong place and before his colleagues would arrive as planned letting many people escape and leading to many lives getting saved. His other colleagues stormed in minutes later behind schedule when scrores Of civilians had escaped. Unfortunately, they managed to kill 21 civilians in their shootings.

Suhaila Mwalim Bakari, was taken into police custody following the identification of her husband, Mahir Khalid Riziki, as the suicide bomber in the Tuesday attack.

It is not clear whether Suhaila became radicalised, but investigators say she was a  confidant of her husband, lending her ears to his trials and tribulations while in Somalia everytime he called her, demanding details about her current life while he remained in hinding.

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For a man who has been in police radar since 2015, questions arises as to how he perfectly evaded surveillance, communicated with his wife in Mombasa, sneaked into the country, moved through Nairobi and walked into Riverside with bomb vest without detection.


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Investigations

NAIROBI CLUB CONTROVERSY EXPOSES ROT AT THE EXCLUSIVE MEMBERS CLUB

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Justice (Rtd) Mary Ang'awa.

Controversial former Judge Lady Justice (Rtd) Mary Ang’awa is one of four prominent Kenyans at the centre of an ugly showdown at the Nairobi Club, that threatens to expose unseemly financial dealings at East Africa’s oldest members club.

An ugly scene engulfed the club on Thursday 27th Dec, when Justice Angáwa alongside 3 prominent members of the club, who were fired by members from the Club Main Committee on 11th December, attempted to force their way back into office and issue resolutions claiming to be the bonafide club officials.

According to eye witnesses, Justice Angawa, Prof Joseph Keiyah and Ms Jane Thirikali were forced to flee the club shortly after 10am after the club’s management with beefed up security barred the ex-Committee members from conducting any meeting within the premises.

Prof Joseph Kieyah.

In a strongly worded press statement issued by the Interim Club Main Committee  Elected after the incident, the club condemned four of the recalled committee members Lady Justice (Rtd) Mary Angawa, Mr David Aduda, Mr Prof. Joseph Keiyah and Ms Jane Thirikali, terming their effort to retake their offices by force as an illegal attempt to “usurp the club’s authority”.

The statement also pointed an accusing finger at the 4 ex Committee members attempt to retake their offices as a clear effort to interfere or obstruct an ongoing audit ordered by club members after details of financial scandals were unveiled mid 2018.

On 11th December 2018, Nairobi Club Members held a Special General Meeting (SGM) in which the entire 9 member Club Main Committee (Lady Justice (Rtd) Mary Angawa, Mr David Aduda, Mr Prof. Joseph Keiyah and Ms Jane Thirikali) was recalled (removed) and an Interim Club Main Committee Elected to spearhead the running of the club and to institute a Forensic investigative Audit into the mismanagement of Club funds.

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In the stormy SGM, serious corruption and mismanagement allegation were levelled at Committee. The then Vice Chairman  Prof Joseph Keiyah received the brunt of club members ire as incidents of his involvement in shocking procurement malpractices were read out to members. Among the accusations were;

a. While Chairman of Works and project sub-committee, he influenced a variance to works of Ksh 3,833,792.00 which was not budgeted and without the involvement of the Club management. Arm twisting the club to cancel a billboard contract awarded to Backlite and award it to Adsite whose cost of Ksh 2,000,000.00 was more expensive to Backlite’s Ksh 1,750,000.00.

b. Lobbying and canvassing for a Ksh 6,410,000.00 cost to purchase a generator set and cabling services which the Club management had not sought contrary to Club management procurement policies.

c. Presenting and canvassing for a quote Ksh 3,405,516.40 claiming that it was the amount required to cable the generator set to the Tennis Pavilion which the Club management has not sought.

d. As Gymkhana captain, he personally procured a music system for Zumba classes at an inflated cost of Ksh 284,700.00 as opposed to the procurement cost of Ksh 74,500.00 which had been already negotiated by the Club management

According the those who attended the stormy SGM, the members singled out Prof Keiyah and Justice Mary Angawa as those who had cultivated a cartel like approach to Nairobi Club’s procurement matters.

The sordid revelations at the club mark yet another disgraceful chapter for both Prof Keiyah and Justice Angawa whose exist from public service seem to have left them in limbo.

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Prof Keiyah was appointed in 2016 by President Uhuru Kenyatta to be a member of the Coffee Sector Implementation Committee. His term expired in May 2018 and was not renewed.

The controversial judge was removed from the judiciary by the Judges and Magistrates Vetting board in December 2011 and has since been in and out of court fighting the decision. Her attempt to become Muthaiga Golf Club’s lady Captain was rejected as members objected to the cloud over her removal and her widely reported abrasive personality.

Nairobi Club in 1912.

At the Clubs SGM on 11th Dec 2018, the ex judge was accused on high handed decision ie threatening the Club CEO and other senior administrative officials with removal if they did not align to her camp. She is also accused of forcing the club to cancel a valid contract with a billboard company to advance a different company supported by herself and Prof Keiyah.

The members resolved to call the matter to a vote as per the bye laws. The vote to sack the entire committee was 104 votes in favour against 32 votes. The Club Main Committee that was recalled was as below:

(1) Mr Julius Koros- Chairman (Had resigned earlier before SGM)

(2) Mr Fred Odhaimbo (Had resigned earlier before SGM)

(3) Prof Joseph Keiyah

(4) Lady Justice (Rtd) Mary Angawa

(5) Mr David Aduda

(6) Ms Jane Thirikali (Co-opted)

(7) Ms Lilian Kagwiria

(8) Mr John Wali

(9) Mr Ken Mwindi

After proposals and secondments of various Club members, the following interim committee was elected:

Chairperson-Ludmila Shitaka

Vice Chair- Dr Luke Musau

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Leonard Mudachi

Hon.Alice Ndegwa

Yvonne Tharao

Michael Monari

Francis Maina

In the process, Nairobi Club also managed a first – elect its woman Chairperson Ludmila Shitaka, since the club’s inception in 1902.

In the meantime, the outcome of the financial audit threatens to burry the reputations of several notable members of the Club.

Nairobi Club. One of the oldest members clubs in East Africa. Founded in 1902. Now at the centre of procurement controversy.

According to inside the sources Nairobi Club has an accumulated debt of KShs 100 million which has raised serious concerns about the well being of a club patronised by an exclusive group of Kenya’s high and mighty.


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