Investigation ordered as audit reveals theft at Kenya Power

What you need to know:

  • Noordin Haji has given the Inspector General of Police Joseph Boinnet 21 days to conclude investigations in order to allow the prosecutor to take the case to court.
  • The audit into the company revealed that unscrupulous employees colluded to award contracts worth billions of shillings to unregistered companies.

  • By Friday, Kenya Power boss Ken Tarus had fired 23 employees linked to companies that had been pre-qualified for the awarding of tenders.

The Director of Public Prosecutions Noordin Haji has ordered speedy investigations into Kenya Power following an internal audit that revealed massive theft through irregular awarding of contracts.

In a letter seen by the Nation, Mr Haji has given the Inspector General of Police Joseph Boinnet 21 days to conclude investigations in order to allow the prosecutor to take the case to court.

The audit into the company revealed that unscrupulous employees colluded to award contracts worth billions of shillings to unregistered companies. Many of the tenders were for repair of KP infrastructure.

PROXIES

By Friday, Kenya Power boss Ken Tarus had fired 23 employees linked to companies that had been pre-qualified for the awarding of tenders to circumvent the proper tendering process. Many of these companies were found to be owned or associated with KP employees who set them up as proxies, therefore essentially awarding the contracts to themselves.

The scandal comes hot on the heels of a public relations nightmare, where Kenya Power has had to defend itself against allegations of fleecing customers through inflated power bills.

A class action suit against KP has been filed by former Law Society of Kenya Chairman Apollo Mboya.

COLLUDED

Separately, the DPP has also asked the Ethics and Anti-Corruption Commission  to provide an update of the investigation into yet another procurement scandal at the National Cereals and Produce Board, where Sh1.9 billion was allegedly lost. “Due to the nature, gravity and complexity of the matter, I propose that the said investigations be undertaken by a multi-agency team of investigators comprising officers from the commission, Directorate of Criminal Investigations, Kenya Revenue Authority and Asset Recovery Agency,” said Mr Haji.

Agriculture PS Richard Lesiyampe on Thursday denied the involvement of politicians and State officials in the scandal, and told the National Assembly’s Public Accounts Committee that 18 traders are to blame, having colluded with brokers to block legitimate farmers from selling their maize to NCPB.