Ex-KPC MD Charged in Sh800M Fraud Case

Former Kenya Pipeline Company (KPC) Managing Director and Homa Bay senatorial candidate Dr Shem Odongo Ochuodho has been charged in a Nairobi anti-corruption court over an alleged Sh800 million conspiracy to defraud the State-owned oil transporter.

According to the charge sheet, Dr Ochuodho is accused of conspiring with other senior officials and private individuals to defraud Kenya Pipeline Company Limited of Sh827,564,608.20 through a questionable refinancing arrangement.

Alleged Fraudulent Refinancing Deal

The prosecution alleges that on diverse dates between May 2003 and July 2004 in Nairobi, Dr Ochuodho, jointly with other board members, entered into a refinancing agreement that required KPC to pay Triple A Capital Limited credit charges amounting to over Sh827 million.

However, prosecutors say Triple A Capital Limited did not have the financial capacity to pay KPC’s international creditors, contrary to claims made in the agreement.

Co-Accused Persons Named

Those charged alongside Dr Ochuodho include Maurice Dantas, the then chairman of the KPC board of directors, as well as John Gichia Macharia and Janice Theresia Wanjiku Kiarie, also known as Terry Wijenje, who were directors of Triple A Capital Limited.

Bank Payments Under Scrutiny

The court heard that Dr Ochuodho and Maurice Dantas, while employed as public officers responsible for the administration of public property, jointly and fraudulently instructed Standard Chartered Bank Kenya to pay Sh1,250,577,549 from KPC’s account to Triple A Capital Limited.

The money was allegedly paid on the false pretext that Triple A Capital had settled similar amounts owed by KPC to its international creditor, Export Development Canada (EDC)—a claim the prosecution says was untrue.

They are further accused that on December 28, 2003, they fraudulently authorised an additional payment of Sh397,699,893 from KPC’s account to Triple A Capital Limited, purportedly as a refund.

Misuse of Public Office Charge

Dr Ochuodho is also charged with misuse of public office by allegedly improperly conferring a benefit of Sh99,045,774 on Triple A Capital Limited through the signing of a Deed of Assignment of Debt on behalf of Kenya Pipeline Company.

Fraudulent Acquisition of Public Property

Meanwhile, former Triple A Capital directors John Gichia Macharia, Janice Theresia Wanjiku Kiarie, and Triple A Capital Limited face charges of fraudulent acquisition of public property.

Prosecutors allege that on December 31, 2003, the accused jointly acquired Sh1.69 billion by falsely claiming they had paid debts owed by KPC to Export Development Canada (EDC) and the Japan Bank for International Cooperation (JBIC) under the refinancing agreement.

Plea and Bail

Dr Ochuodho and his co-accused pleaded not guilty before Anti-Corruption Senior Principal Magistrate Lawrence Mugambi.

The former KPC boss was released on a cash bail of Sh2 million.

The corruption case will be mentioned on August 13 for further directions.