Exposed: Mombasa based company linked to Sh1.8Billion world bank scandal

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A Mombasa-based company has been exposed for allegedly swindling the World Bank a some of Ksh1.8 billion loan for the construction of a Ksh2.8 billion Liquefied Petroleum Gas (LPG) storage plant.

The plan to set up a liquefied petroleum gas storage plant in 2021 was meant to ease the high cost of cooking prices in the country.

According to the daily nation, the company’s oil exploration had allegedly been cancelled by then Cabinet Secretary for Petroleum and Mining John Munyes.

Months later, it received the funds from World Bank’s subsidiary firm, International Finance Corporation (IFC).

Oil exploration in northern Kenya
Oil exploration in northern KenyaFILE
Munyes had then stated that the company was among six foreign firms that had acquired oil exploration and mining rights in Lamu but were using the licenses for speculation and insider trading instead of doing actual exploration.

“This project will underpin Kenya’s ambitious goal for sustainable economic development. We are aiming to complete construction of phase one and begin operations within six months,” an official of the company noted after receiving the funds.

Despite the company filing for bankruptcy in a US court two years prior, it was able to qualify for the Ksh1.8 billion facility.

It was also alleged that the firm acquired its license from the National Environment Management Authority (NEMA) without the government body verifying that the land for the storage plant was set.

The company’s management did not respond to Nation Africa’s queries on why the construction was yet to begin a year later. The area meant for construction was reported to be unkept with grass growing unevenly.

Area residents also confirmed that no construction was undertaken on the designated land.

The company, nonetheless, insisted that the project was progressing as scheduled.

A petitioner, however, reported the company to the Directorate of Criminal Investigations (DCI) claiming that his signature was forged to allow the company to acquire its license which was suspended

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