CS summoned over possible forgery in Ksh300 million contract

Mysterious tenders

CS summoned over possible forgery in Ksh300 million contract

Petroleum and Mining Cabinet Secretary John Munyes has been summoned by the Senate Energy Committee over the irregular awarding of contract with investigations into possible forgery.

An Insurance company is said to have been awarded the Ksh300 million contract for the cover at the Kenya Pipeline Company (KPC).

The Senate Committee is investigating how the insurance company was awarded the contract yet it did not apply or contest for the tender.

Underhand methods

Reports also indicated that the investigation could also focus on forgery and alleged intention to sanitize a process of selecting the contested insurance firm.

CS Munyes is set to appear before the Senate Committee to answer on how AMACO Insurance Company who never applied for the job were illegally awarded the job to cover terrorism and sabotage cover components of KPC projects.

Then Managing Director Joe Sang wrote to Sedgwick Insurance Brokers and CIC Insurance telling them they had won the respective bids.

Trouble tender

What buffled the Senate committee is that Sedgwick wrote back to KPC introducing AMACO Insurance in the business on a 70% -30% revenue share.

Sedgwick asked whether it was in order to co-insure the business awarded to them specifically industrial all risks and terrorism and sabotage covers.

However, this was in contravention of the KPC policy on insurance that indicates insurance covers are placed through insurance brokers and a broker can only recommend one underwriter per policy.

According to reports by Citizen TV, indicated that an internal audit report questioned the deal and AMACO's involvement since there were no instructions to co-insure in the tender documents.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke