Monica Juma, officials evade queries on Nock role in the fuel crisis
Energy PS, Andrew Kamau, Acting Energy CS Monica Juma and Epra chief Daniel Kiptoo address reporters on Thursday.
Government officials have evaded questions on why state-owned National Oil Corporation of Kenya (Nock) was among companies that lacked fuel as shortages bit even as it heaped blame on private dealers.
Acting Petroleum Cabinet Secretary Monica Juma, Principal Secretary Andrew Kamau, Energy and Petroleum Regulatory Authority (Epra) Director-General Daniel Kiptoo, Energy PS Gordon Kihalangwa and Nock Chief Executive Leparan Morintat called a press briefing in Nairobi on Thursday to shed light on government response to the fuel crisis.
Even as they answered questions on the genesis of the problem and sanctions against private firms accused of deliberately creating the shortage, the officials dodged questions posed by reporters on Nock.
The loss-making company has been characterised by weak management, corruption and theft over the years, leaving it a shell of its former self.
It was created primarily to stabilise prices of petroleum products.
To underline the rot at Nock, the state firm separately contracted consulting firms – KPMG Ltd, Ernest and Young and Geomatrix Consulting Ltd – for Sh3.3 million, Sh11.3 million and Sh4 million respectively to investigate its stock variances covering July 2017 and December 2018.
Auditor-General Nancy Gathungu found that the firms made largely similar findings, casting doubt as to why the financially struggling company paid Sh18.8 million for the exercise.
But importantly, the audits showed theft of millions of litres of petrol, diesel and kerosene valued at Sh2.27 billion in just a year.
“Instances of malpractices were identified in generation and processing of credit notes, illegal diversion of product consignments and dispatches not supported by transporter documentation or not delivered to intended sites,” Ms Gathungu said.
The problems at Nock mean Kenyans are left at the mercy of private oil companies who have in recent weeks resorted to hoarding due to delay in subsidy disbursements by the government. Kenyans pay millions of shillings to finance Nock operations every year.
The parastatal has more than 110 stations across the country. That gives is capacity to ensure a steady supply of petroleum products in case of private sector-induced shortages.
Mr Leparan told the National Assembly in February that Nock needs Sh13 billion from Treasury to remain afloat.
He said the company has liabilities of Sh9.6 billion, including a debt of Sh4 billion to KCB and Sh2.6 billion to Stanbic Banks while its assets total Sh2.6 billion.
The Directorate of Criminal Investigations (DCI) on Friday summoned executives of 10 oil marketers even as the state lined up sanctions against firms suspected of abetting the petroleum crisis.
Nock is not among firms earmarked for sanctions.
The executives of Vivo Energy Kenya, Total Energies, Petro Oil, Gapco Kenya Ltd, Riva Petroleum, and Ola Energy Kenya were questioned by detectives after they were slapped with show-cause letters by Epra over unexplained shortages of petroleum products.
Galana Oil, Lake Oil, Lexo Oil, and Hass Petroleum executives will also appear before DCI officials for questioning.
