KPC Set To Pay Outstanding Creditors Without Seeking Board’s Approval

by Mahakamani News
Former Kenya Pipeline Company director Shem Odongo Ochuodho and director of Triple A Capital Ltd Theresia Wanjiku alias Terry Wijenje before Nairobi Anti-corruption court 

A deal by Kenya Pipeline Company and a private company to pay the corporation’s creditors on its behalf was reached without the board’s approval, a Nairobi court has been told.

Assistant Director at National Treasury Festus Wachira King’ori has informed court that the alleged deal, which was hatched during the tenure of former KPC managing director Dr Shem Ochuodho, ended up being an expensive venture.

He said that KPC was seeking Sh 2 billion for 12 months which was to be funded by Triple A through Standard Chartered Bank.

The court heard that Triple A Capital was to pay KPC’s creditors on behalf of KPC and recover the money from the oil firm.

Wachira said that the original terms as approved by the board were varied and the period for payment extended beyond one year adding that the interest rates were also changed.

Giving his testimony before the trial magistrate Douglas Ogotu Wachira further said that the loan deal was never discussed in any meeting by KPC board.

The witness said it was in September 2004 the board held a meeting to discuss on how the financing Sh 2 Billion was reached.

He informed the court that later Inspectorate of State Corporation requested them that to brief the agency on the borrowing of KPC from Triple A after they lodged investigations in the matter.

He said that during the investigation were launched and the then chairman Maurice Dantas and Dr Ochuodho were on compulsory leave.

The trial court heard that the inspectorate requested the board to review the minutes that led to financing.

Wachira said that the board refuted claims that all board members approved the deal but that it was discussed by emergency committee but not tabled before the full board.

In the case Dr Ochuodho, Terry Winjenje and Triple A Capital have been accused of conspiring to defraud KPC the colossal amount through a bogus refinancing deal.

It is said that KPC ended up paying creditors with their own funds obtained by charging company assets to Standard Chartered Bank – a transaction it completed through Triple A Capital in 2004.

Dr Shem Odongo and Maurice Dantas are accused being employed by Public service as Managing Director and Chairman of the board directors of Kenya Pipeline Company respectively and whose functions concerned the administration of public property  jointly and fraudulently instructed the standard chartered Bank of Kenya to pay Triple A Capital limited Kshs, 1,250,577, 549 from KPC ‘s account purporting it to be a refund on account of Triple A Capital limited having paid  a similar sum to KPC’s International Creditor, Export Development Canada (EDC) yet no such payment had been made by Triple A Capital limited and on behalf of KPC to EDC.

They are also accused on 28, December 2003 jointly fraudulently instructed the the standard Chartered Bank Kenya limited to pay Triple A Capital limited Kshs, 397, 699,893 from KPC’s account purporting it to be refund on Triple A Capital limited.

He is also charged with misuse of public office by improperly conferring  a benefit of Kshs 99,045,774 on Triple A capital by signing a Deed of assignment of debt on behalf of Kenya Pipeline Company limited.
The former Triple A Directors  John Gichia Macharia , Janice Theresia Wanjiku Kiarie alias  Terry Wijenje and Triple A Capital limited are facing charge of fraudulent acquisition of public property.

Dr Shem Odongo and Maurice Dantas are accused that being employed by Public service as Managing Director and Chairman of the board directors of Kenya Pipeline Company respectively and whose functions concerned the administration of public property  jointly and fraudulently instructed the standard chartered Bank of Kenya to pay Triple A Capital limited Kshs, 1,250,577, 549 from KPC ‘s account purporting it to be a refund on account of Triple A Capital limited having paid  a similar sum to KPC’s International Creditor, Export Development Canada (EDC) yet no such payment had been made by Triple A Capital limited and on behalf of KPC to EDC.

They are also accused on 28, December 2003 jointly and fraudulently instructed the the standard Chartered Bank Kenya limited to pay Triple A Capital limited Kshs, 397, 699,893 from KPC’s account purporting it to be refund on Triple A Capital limited.

They are accused on 31 of December 2003, being Directors of Triple A Company Limited, jointly and fraudulently acquired a public property Kshs, 1,691,791 ,968 by purporting that they had paid a debts owed by Kenya Pipeline Company (KPC) to its creditors , Export Development Canada (EDC) and Japan Bank for International Cooperation (JBIC) under a refinance agreement, yet no such payment had been made by Triple A Capital limited on behalf of KPC to EDC and JBIC.

The former Triple A Directors  John Gichia Macharia , Janice Theresia Wanjiku Kiarie alias  Terry Wijenje and Triple A Capital limited are faxing charge of fraudulent acquisition of public property

They are accused on 31 of December 2003, being Directors of Triple A Company Limited, jointly and fraudulently acquired a public property shillings 1,691,791 ,968 by purporting that they had paid a debts owed by Kenya Pipeline Company (KPC) to its creditors , Export Development Canada (EDC) and Japan Bank for International Cooperation (JBIC) under a refinance agreement, yet no such payment had been made by Triple A Capital limited on behalf of KPC to EDC and JBIC.

They are out on a cash bail of 2 million.


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