The Kenya Pipeline Managing Director Joe Sang has quit his position as the board invited crime busters to investigate the disappearance of more than 21 million litres of fuel, which KPC claimed to have either spilt or was stolen by vandals.
Mr Sang, whose first term was to end in April next year, handed his letter to the board on Tuesday morning.
In the letter, Mr Sang said that “due to personal reasons”, he would not be seeking extension of his term, which effectively ends his troubled tenure at KPC.
In a press statement signed by KPC chairman, Mr John Ngumi, the board on Tuesday also invited oil marketing companies (OMCs) to conduct forensic audit of stock positions and to complete the exercise by December 31.
“The board directed management to accord maximum cooperation to both the DCI and the forensic auditors,” Mr Ngumi said.
This followed a row between KPC and major oil companies over the whereabouts of 21 million litres of fuel, worth over Sh2 billion, which the company claims spilt in the fields – or was stolen in the last two years.
The 10 leading oil marketers had written a joint letter dated October 26, 2018 in which they demanded to conduct their own forensic audit to check the accuracy of stock statements issued by KPC and get to the bottom of what was turning to be bogus records of loss.
John Ngumi, the Board of Directors Chairperson confirmed that his team has received and accepted Joe Sang’s letter stating that due to personal reasons he will not be seeking a second term as Managing Director.
“The Board will immediately embark on the process of recruiting a Managing Director,” he said. The MD’s decision comes at a time when the Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC) are conducting probes touching on procurement at the organisation.
Other reports indicated that an investigation into the Sh1.7 billion construction of Kisumu Oil Jetty were nearing completion. The corporation contracted South Engineering Company to build the jetty that was meant to facilitate the transportation of oil through Lake Victoria to Uganda and Tanzania.
“You will see action soon. We are doing well in the investigations where Kenyans might have lost money through dubious deals,” George Kinoti, the head of the DCI said.
The Tuesday special Board meeting also came up with three resolutions among them that the oil marketing companies through their joint company, Supplycor Kenya Limited, to conduct a forensic audit of stock positions which should be completed by end of the year.