Court summons ex-pipeline boss

Former Kenya Pipeline Company managing director Shem Ochuodho was Wednesday summoned to appear in court over alleged fraud.

An anti-corruption court, sitting in Nairobi, also summoned a former chairman of the KPC board Maurice Dantas over alleged conspiracy to defraud the state corporation of Sh827 million.

State counsel Mungai Warui informed the court that the two suspects were out of the country although the prosecution had prepared charges against them. He asked the court to give him two weeks after which they would confirm whether the two would appear and plead to the charges.

Their two co-accused, John Gichia Macharia and Janice Theresia Kiarie alias Terry Wijenje, denied the charge when they appeared before senior principal magistrate Cecilia Githua.

The charge sheet read that the four jointly conspired to defraud KPC of Sh827,564,608 by entering a refinancing agreement with a company known as Triple A Capital to allegedly pay KPC’s international creditors.

When they entered the deal on diverse dates between May 2003 and June 2004, they were allegedly aware that Triple A Capital Ltd did not have the money. Dr Ochuodho and Mr Dantas were KPC’s managing director and chairman of the board respectively, at the time of agreement.

Mr Macharia and Ms Kiarie faced another count of fraudulently acquiring Sh1.6 billion from KPC alleging to have settled KPC’s international creditors including Export Development Canada and Japan Bank for International Cooperation in a refinancing agreement.

It is alleged that they acquired the money on December 31, 2003 in Nairobi. They denied the charges and were asked to deposit Sh2 million each in court, to secure their release.

Although the charges were not read, Dr Ochuodho and Mr Dantas will be facing more counts including making fraudulent payments to Triple A Capital and abuse of office.

Defence lawyers informed the court that their clients had fully cooperated with Kacc investigators since the probe was launched in 2003.

While asking for them to be freed on bond, the lawyers said that the accused persons were people of means with business in the country. They also emphasised that they would appear in court when required.

Ms Githua directed the case to be mentioned on February 3 when Dr Ochuodho and Mr Dantas would appear in court.