KPC boss ignored tender team in Sh1.4bn deal

Politics and policy

Mr Charles Tonui, the Kenya Pipeline Company managing director. PHOTO | SALATON NJAU 

By BRIAN WASUNA

An Irish firm has claimed in court that suspended Kenya Pipeline Company boss Charles Tonui defied the State agency’s consultants in awarding a Sh1.4 billion tender for pumps to Italy’s Ebara Construction.

Ruhrpumpen holds that it was recommended by consultants hired by Kenya Pipeline Company (KPC) for the supply of mainline and booster pumps worth Sh1.4 billion to be used in the ongoing construction of a new Mombasa-Nairobi pipeline.

The Irish firm made the claim in a High Court application filed on Tuesday.

The Irish firm filed a suit last month seeking to compel KPC to award it the deal. The State corporation in its defence said it chose Ebara after discovering that Ruhrpumpen is not a manufacturer, contrary to the terms of the tender requirements.

“The action of Mr Tonui to go against the project committee and consultant engineers is against Ruhrpumpen’s legitimate expectation. The new evidence shows without doubt that there is a contract between Ruhrpumpen, KPC and Zakhem,” said Rui Moreira, Ruhrpumpen’s MD in charge of Africa.

The KPC boss was on Saturday suspended by President Uhuru Kenyatta following his mention in an Ethics and Anti-Corruption Commission report as a subject of investigation.

EACC is investigating allegations that Mr Tonui used his influence to irregularly award KPC tenders to Petro City, Redline Company and Lelan Koech & Company Advocates.

He is also being investigated for his role in an alleged acquisition of a parcel of land at an inflated price of Sh545 million.

READ: Irish company claims KPC pumps tender inflated by Sh400m

KPC last year awarded the Sh44 billion tender for construction of a new Mombasa-Nairobi pipeline which is expected to be commissioned in 2017. The new structure will replace a 34-year-old line and is expected to help Kenya meet oil demand in the region.

Justice Fred Ochieng’ is expected to deliver a ruling in the matter on May 5 having taken over the matter from another judge, Francis Gikonyo, who disqualified himself from the case for “personal reasons.”

Ruhrpumpen has also accused Mr Tonui of rushing to award Ebara the contract for supply since the suit was filed last month, and now wants the court to stop KPC and Ebara from signing the supply contract until Justice Ochieng’ delivers his ruling.

The Irish firm says Mr Tonui has been trying to rush the contract award to Ebara so as to render Justice Ochieng’s ruling nugatory.

“Mr Tonui has since being served with the suit papers started pushing for the award of the contract to his preferred Ebara Corporation in a bid to defeat any orders that may be granted by this court,” Ruhrpumpen adds.