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An Anti-Corruption Court yesterday acquitted former Kenya Pipeline Company Managing Director Joe Sang and five former managers from Sh1.9 billion Kisumu Oil Jetty case.

In a judgment rendered by trial magistrate Victor Wakumile, the court found that there was no evidence to support criminal allegations of abuse of office, engaging in a project without prior planning and willful failure to comply with applicable and guidelines relating to management of public funds.

Wakumile said the project was well planned, delivered on time and no public funds were lost.

Case stemmed from construction of the 470km pipeline from Mombasa to Nairobi at a cost of Sh1,963,065,422. Investigators had alleged corruption in the project.

However, the court said witnesses adduced by prosecution were consistent that there were no malpractices or irregularities.

Magistrate said the project was planned for in 2006 and the same was contained in KPC Limited Strategic Plan for 2009/2010 and 2011.

Magistrate further noted that the project was also contained in the KPC Vision 2025, and dismissed the prosecution’s allegations that Sang and the former managers engaged in the project without prior planning contrary to the Anti-Corruption and Economic Crimes Act.

“I find that all prosecution witnesses were unanimous that the construction of Kisumu Oil Jetty was indeed planned before construction and way back in 2006 before most of the accused persons were employed by Kenya Pipeline Company,” Wakumile noted.

He found that the charge of “engaging in unplanned project” was defective both in law and facts.

“The entire case against all accused collapses under section 215 Criminal Procedure Code (CPC) they are now all acquitted,” Wakumile ruled.

Court noted that witnesses said that Kisumu Oil Jetty was a multi-year project and received funding from the National Treasury in two financial years-2016-2017.

He said funds allocation was in two tranches of Sh1.4 billion and Sh500 million.

Among the prosecution witnesses was John Ngumi, former Board charge of KPC, who confirmed that he signed implementation of the project and the same was initiated through a supplementary budget in the 2016 and 2017 Financial Years.

He told court that the project and budget were approved by the National Treasury at Ministry of Energy.

Court also heard that at the time sang was appointed as the MD in 2016, the plans for undertaking the project were already in place. Similarly, when the other accused persons were appointed to their respective positions at the State cooperation, the project had already been planned for and should not have been charged over actions prior to their appointment.

Con the minister

Sang had been charged alongside company secretary Gloria Khafafa, Head of Procurement Vincent Cheruiyot, procurement manager Nicholas Gitobu, General Manager Finance Samuel Odonyo and General Manager in charge of infrastructure Billy Aseka.

Magistrate also noted that no payment was made beyond the approved budget of Sh1.9 billion. Court also threw out claims that Sang illegally authorised payment for the project. While acquitting Sang of charges of abuse of office, the court said that all procurement steps were followed during the implementation of the project.

In addition, the project was approved in seven different quarters including chief engineer, senior engineer, project manager who were not in court.

Magistrate concurred with Sang’s defence that he followed all procedures when awarding the tender and sought for expert and professional opinion before awarding the tender to Southern Engineering Company Limited.  Wakumile also found that the court could not punish the accused for violating the Public Procurement and Asset Disposal Act as asked by the prosecution.

He said according to the Act, non-compliance with procurement regulations calls for internal disciplinary action.

Prosecution had argued that it is illegal to commence the project through a supplementary budget.

Former KPC officials were accused to have committed the offence between June 2016 and June 2017.