Former Kenya Pipeline Company (KPC) Managing Director, Dr. Shem Ochuodho, has been ordered to defend himself in a corruption case involving a controversial financial deal that allegedly defrauded the state corporation of more than Sh827 million.
Milimani Anti-Corruption Court Principal Magistrate Zipporah Gichana ruled that Dr. Ochuodho and his co-accused, Janice Theresia Wanjiku Kiarie (also known as Terry Wijenje), a former director of Triple A Capital Ltd, have a case to answer following the conclusion of the prosecution’s evidence phase.
“I find that the prosecution has established a prima facie case against the accused persons. Each of them is accordingly placed on their defence,” Magistrate Gichana declared.
The ruling follows testimonies from over 20 prosecution witnesses in a trial that has spanned more than a decade, stemming from a debt refinancing arrangement between KPC and Triple A Capital between 2003 and 2004.
The prosecution alleges that the accused conspired to defraud KPC by orchestrating a financing agreement under which Triple A Capital was to settle KPC’s debts with international creditors.
However, investigators say the firm lacked the financial capacity to deliver on its obligations, leading to unjustified charges totaling Sh827,564,608.20.
A pivotal witness, former KPC board member Engineer Caleb Olall, testified that the board never approved the Sh2 billion loan from Triple A Capital and was bypassed by KPC’s management.
Olall further claimed that board members were threatened and pressured into compliance, and questioned the authenticity of minutes presented in court, alleging they had been manipulated.
Despite procedural irregularities, the board gave a general nod to the deal, reportedly under pressure from senior government figures and with legal clearance from the Attorney General at the time.
Dr. Ochuodho is specifically accused of instructing Standard Chartered Bank to release over Sh1.25 billion from KPC’s accounts to Triple A Capital under false pretenses, purportedly as a refund for payments made to KPC’s creditors—payments which prosecutors claim were never actually made.
The case will be mentioned on July 3, when the court will set dates for the defence hearing.
