News
Out of court deal for KPC oil scandal
The Kenya Pipeline company Headquarters. PHOTO/ FILE
Posted Friday, January 16 2009 at 17:34
The Government on Friday struck a deal with financiers to settle the Sh7.6 billion oil scandal at the Kenya Petroleum Company without litigation.
A meeting with both local and international financiers came against the backdrop of threats that they could move to court to compel KPC to pay for the loss of money through the irregular release of oil stocks to Triton Petroleum.
The Government, on its part, had expressed fears that the key artery in the distribution of oil in the country and other landlocked nations in Eastern Africa could face liquidation if it was taken to court by the financiers.
KPC had released stocks of oil worth Sh7.6 billion that it had held in its trust and was under instructions not to deliver the oil to Triton without authorisation.
That was why Energy minister Kiraitu Murungi, permanent secretary Patrick Nyoike and other ministry officials met representatives of Kenya Commercial Bank (KCB), Fortis of France, Emirates, National Oil Corporation, Ecobank and Equatorial Bank in a bid to ensure that they do not go to court to press charges against KPC.
Sources said that, during an informal meeting, the Government promised to track down directors of Triton, including the chief executive Yagnesh Devani, and ensure that they pay for the lost money.
Not panic
The financiers were assured that they should not panic because the Government was working with Interpol to bring back Mr Devani, who slipped out of the country after the scandal surfaced in December, to pay for the oil stocks that were released to his company.
The Government is said to have described KPC as being very important to the economy of Kenya and other landlocked countries and would not allow a scheme of few individuals to bring it down.
The Government believes that the oil scandal was a conspiracy among employees of financiers, oil marketing companies, KPC and Triton.
The employees of the four players, it is claimed, took advantage of loopholes in the Collateral Financial Agreement (CFA) to release the oil without authority from the financiers.
Government assured financiers that the CFA would be strengthened to seal loopholes that were exploited by schemers of the scandal.
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Submitted by ganjoniPosted January 18, 2009 04:49 AM
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Submitted by yaaalif
because them are part of the GAME
Posted January 17, 2009 09:59 PM -
Submitted by SJ502
Let them give the money back first, and every penny be counted publicly... then sort out the criminals later. If you let them panic, they just go underground with the money.
Posted January 17, 2009 09:43 PM -
Submitted by Kiarutara
That was Devani's whole game plan. Bring oil that never was, get it out however he did it, get his foreign financiers take government to court and be payed clean money. How much do we know about the foreign financiers, what happened to the UK based financier, they are not mentioned above
Posted January 17, 2009 08:19 PM -
Submitted by gizah
So this crazy regime is going to underwrite and cover this debt by using our money? money that should be building schools and resettling victims of tribal clashes? what is wrong with africans? mzungus provide houses, allowances for the unemployed, free education and free health se rvices not because they are richer than us, but cos they know what heir people needs. So this government that has been unable to give 25,000 to 300,000 people can write off 8 billions at a stroke of a pen.shame on you!
Posted January 17, 2009 05:49 PM
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Yagnesh was a friend of mine years ago in clasd 7 . We both atttended the same tution. He is a god fearing person. Let us not attack him out of ignorance. I am sure the truth will eventually come out but till then do not judge(let he was not sinned cast the first stone)I last met him 20 years ago and still believe he has done no wrong. In any case I am sure he has not spilled one drop of blood unlike many of our leaders. .Rak