PRESS RELEASES

NOCK BOSSES FACE TENDER CHARGES

DAILY NATION, AGGREY MUTAMBO, 05 AUGUST 2012

The fate of two top officials at National Oil over allegations of irregular procurement of oil now lies with the Director of Public Prosecutions.

The Ethics and Anti-Corruption Commission (EACC) has recommended to the DPP that National Oil Corporation of Kenya managing director, Ms. Sumayya Hassan-Athman and her supply manager Maimuna Kassim be charged with abuse of office after it was found they did not follow the law in contracting a firm to supply automotive gas oil.

Direct procurement

The Commission wants Ms. Hassan-Athman to be charged with “willful failure to comply with the law and applicable procedures” and her supply manager charged of “abuse of office contrary to the Anti-Corruption and Economic Crimes Act.”

In a quarterly report published on Friday, EACC found that the two used ‘direct procurement’ instead of open tendering to identify a company to supply the automotive gas oil (AGO) — a type of fuel intended for use in road vehicles powered by diesel engines.

NOCK decided to procure AGO after it got a tender from the Ministry of Energy to supply oil. “Investigations reveal that NOCK did not invite any tenders for the supply of AGO.

In spite of NOCK having contracted the petroleum company, the latter did not supply the oil within the contract period,” says part of the investigations report.

At this point, NOCK contracted another oil firm to deliver AGO. EACC charges that NOCK engaged the other supplier, without following procurement laws even when it was obvious the company was charging higher than the initial supplier.

After entering the second deal, the Commission established that NOCK paid Russian Oil and Gas Manufacturers and Exporters Association (Ruogmea) $127,580 (Kshs 10, 589,000) for the purchase approval transaction allocation code for NOCK to import oil products from Russia.

However, EACC found that the expected 132,000 metric tonnes of AGO were never delivered to NOCK.

EACC acting CEO Jane Muthaura says the investigations file was forwarded to the DPP, Mr. Keriako Tobiko on June 22 but he is yet to respond.

If he agrees to the recommendations contained in the report, it would mean the officials would be charged under section 45(2), 48(1) and 46 of the Anti-Corruption and Economic Crimes Act.

The government agencies are usually restricted to provisions of the Public Procurement and Disposal Act that they must advertise tenders for competitive bidding.


Posted on Thursday, August 09, 2012
 
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