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Steam and Petroleum Company which got into a partnership with RGT Runway Beam at Embakasi ICD for Kenya Ports Authority has announced a loss of upto 54 Million.
The loss which occured at Equity Bank and Access Bank was after a breach of terms of Joint Venture when it failed to pay KPA contract as agreed.
“Trouble began when invoices were sent to KPA for Kshs.34,723,935.07 and Kshs.25,000,000/= respectively whose proceeds were to be paid through the “Checking Account” No.32876002 held at the Transnational Bank. Without its knowledge, the Source Logistics director one Mr. James Daniel Dena while in fraudulent collusion with the employees KPA, caused the invoices in the sum of Kshs.54,723,935.07 to be paid through Account N0.1380265181582 held at the Equity Bank Limited in the name of Source Logistics East Africa Limited which is solely operated by Mr. Dena,” Said Director Steam and Petroleum Ltd Steve Mwangi, in a statement.
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Part of the agreement which was made when they were merging was that Steam and Petroleum and the Source Logistics would own interests in the joint venture at the ratio of 82.5 percent and 17.5 percent respectively and any profit/losses and liabilities that would arise thereof would be shared in that ratio.
Steve has further urged the central bank and DCI to investigate into the matter so as to end impunity.
“I urge the Central Bank of Kenya, the Capital Markets Authority and the Directorate of Criminal Investigation to look into this matter urgently. This is the only way we can end impunity and protect customers from fraudulently losing their funds,” he added.