Detectives are investigating how AMACO insurance company associated with Deputy President William Ruto found its way into a lucrative multi-billion tender by Kenya Pipeline Company (KPC) without participating in the tendering process.
Company associated with DP Ruto under investigation by DCI over multi-million KPC contract
How company linked to DP Ruto got lucrative contract without participating in tendering process
It has since emerged that Amaco Ltd did not participate in the tender number KPC/PU/001-OT/16 for KPC’s “All Risk Industrial and Terrorism & Sabotage Cover” that was won by CIC insurance.
However, in unclear circumstances that are the subject of an ongoing investigations at the corruption laden parastatal, Amaco was brought on board by Kenya Pipeline Company (KPC) midway through an ongoing multi-million-shilling contract.
Somehow, the insurance company associated with DP Ruto eventually got 30 per cent of the business while CIC holds 70 per cent as the lead underwriter.
Nation quoted DCI George Kinoti confirming the latest investigation at KPC that has been plagued with allegations of massive corruption, saying he was “going after all those who stole at KPC and other public institutions”.
According to an audit report on the contract, then KPC MD Joe Sang granted a no objection for AMACO to co-insure, giving the DP Ruto linked firm the lucrative deal by the stroke of a pen.
This was against the tender number KPC/PU/001-OT/16 for KPC’s guidelines which did not have instruction to co-insure in the bid documents.
KPC management, department heads summoned
Keen on unravelling the Amaco puzzle, top KPC officials have been summoned to DCI headquarters for interrogation and statement taking as well as to explain the insurance irregularities to the investigating officers.
How the troubled Amaco, which has been facing threats from auctioneers,got a share of the lucrative insurance contract puzzled auditors who raised serious questions and asked the management to explain its involvement.
An audit of the contract warns that KPC risks ‘exposure of 30 per cent of the assets being provided by Amaco.
It further states that “Management to provide a clarification of Amaco’s involvement into this arrangement given that there was no instruction to co-insure in the bid documents in section X of conditions to be met by the underwriters”.
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