Kenya Pipeline Company’s CEO Arrested over Loss of Funds

NAIROBI (Reuters) – Kenya appointed an acting chief executive to the state pipeline company KPC after five of its senior executives, including the CEO, were arrested in connection with the loss of funds at the firm, the latest move to crack down on corruption.

Dozens of Kenyan government officials and business people have appeared in court since May on charges relating to the alleged theft of hundreds of millions of shillings from public coffers in a new drive to tackle widespread graft.

[Related P&GJ story: Kenya Expands Oil Pipeline Network Amid Controversy]

Hudson Andambi, an official at the ministry of petroleum has been picked as acting CEO of KPC, the ministry said, saying the move was due to “unfolding events at the Kenya Pipeline Company and the arrest of the top management.”

“This is to ensure that operations continue without interference for purposes of ensuring security of supply of petroleum products,” the ministry said in a statement.

Joe Sang, the managing director of KPC, was arrested with four other senior officials in connection with the loss of an unspecified amount of money during the construction of an oil jetty in the western city of Kisumu, the Daily Nation reported on its website.

Police were not immediately available for comment. Sang did not answer calls to his mobile phone from Reuters.

The Director of Public Prosecutions Noordin Haji told a local TV station he had authorized the arrest of people suspected of corruption at KPC, without giving details.

Sang, who has been in his post since early 2016, wrote to KPC’s board earlier this week saying he would not seek an extension of his contract on its expiration next April. He cited unspecified personal reasons for his decision.

KPC’s board decided to allow oil marketing companies to carry out a forensic audit of their fuel stocks after they complained about excessive losses.

President Uhuru Kenyatta promised to stamp out graft when he was first elected in 2013, but critics say he has been slow to pursue top officials. No high-profile convictions have occurred since he took office.

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