The Directorate of Criminal Investigations (DCI) has intervened into the suspected fraudulent payment of Sh3.3 billion to new Mombasa-Nairobi pipeline contractor.
The DCI has ordered the Kenya Pipeline Company (KPC) to suspend the payment of the said amount to a Lebanese contractor with immediate effect until a probe into the project is complete.
While appearing before a parliamentary committee, the acting KPC managing director Hudson Andambi said that the contractor is also demanding Sh1.5 billion ($15.2 million), which is yet to be evaluated and approved for payment.
The contractor, Zakhem International Construction Company, has been pushing for the payment to be made before the new development.
Andambi told the committee that he had received instructions from DCI boss George Kinoti not to make the payments as agreed earlier on until investigations into the matter are conducted and determined.
The project is facing a probe into the procurement of Sh48.4 billion pipeline.
“Extension of time (EOT) claims number 1 to 4 is currently under investigation by DCI for suspected fraud. So far, no payments have been made on the claims. There is EOT 5 amounting to $15, 221095.21 yet to be evaluated,” Andambi said.
The contractor now wants the government to pay it Sh.4.4 billion for operations.