Another Blow at Kenya Pipeline as jet fuel worth KSh 5 billion mysteriously disappear

Fresh storm at Kenya Pipeline Company as jet fuel worth KSh 5 billion mysteriously disappear

Even before dust settled on the KSh 2 billion fuel spillage chaos that erupted at Kenya Pipeline Company in December 2018, a fresh and much bigger theft scandal has exploded at the same graft-ridden state corporation. Some 51 million litres of jet fuel estimated to be worth KSh 5 billion is said have mysteriously vanished from the stocks and nobody at KPC appeared to have ready answers on who siphoned the expensive fuel.

Oil marketers, who previously locked horns with KPC over alleged spillage of 21 million litres, have already penned another fiery letter to the corporation’s bosses demanding to know where 51 million litres of their jet fuel went. According to a report by Daily Nation, the marketers expected 61 million litres of the imported jet fuel to be in stock, but all that is left is a paltry 10.5 million litres, which means they have to import more fuel to address a looming acute shortage in the country.

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β€œThe variance of our jet stocks requires an explanation from KPC. We had already imported this stock and discharged it into the KPC system and the same confirmed in your records,” the furious oil marketers said in the letter addressed to the Acting MD, Hudson Andambi.

The jet fuel is needed to keep the aircrafts flying, and this explains why Kenya Airports Authority (KAA), upon learning of the fuel crisis at KPC, also reportedly wrote a letter notifying pilots about the fuel crisis so they can make other arrangements. The latest crisis comes a few months after the now former KPC boss, Joe Sang, dramatically reigned amid allegations that more than 20 million litres of fuel valued at over KSh 2 billion could not be accounted for. Sang, whose term was to expire in April 2019, tendered his resignation letter on December 4, 2018, as probe into the alleged massive losses at the state corporation kicked off.

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The fuel spillage issue had caused serious friction between KPC and major oil companies in the country. Kenya Pipeline, which holds fuel on behalf of the local oil companies, had claimed the fuel had spilled in the fields over the last two years and that some of it was lost through theft. The oil companies in October 2018 wrote a letter to KPC demanding an independent forensic audit on the oil stock statements and loss records. The KPC board resolved to invite the Directorate of Criminal Investigations (DCI) and independent audit firm to investigate the mysterious disappearance of millions of litres of fuel. “The Oil Marketing Companies (OMCs) through their joint company, Supplycor Kenya Limited, to conduct a forensic audit of stock positions which should be completed by December 31, 2018,” the board stated.

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