Ruto and Kiraitu under fire over scandals

Cabinet ministers William Ruto and Kiraitu Murungi were on Thursday taken to task over the maize and oil scandals that have rocked their ministries.

After issuing eagerly-awaited ministerial statements, the Agriculture and Energy ministers faced a barrage of questions from MPs who wanted to know individuals behind the Sh825 million maize and Sh7.6 billion oil scandals.

However, the ministers defended their dockets saying investigations had been launched to establish people involved in the questionable deals.

Mr Ruto was at pains to explain to Parliament the causes of the current maize shortage that has placed 10 million Kenyans at the risk of starvation.

MPs poked holes in Mr Ruto’s explanation and questioned the accuracy of the list of companies that have been trading with the National Cereals and Produce Board (NCPB), arguing that the minister was withholding key facts about the maize scandal.

Mr Ruto faced a packed House of MPs anxious to know the politicians and business people behind the racket.

They were, however, disappointed after the minister failed to mention individuals that have engaged in transactions with NCPB over the last 12 months.

This forced the Speaker, Mr Kenneth Marende to defer the matter to next Wednesday to allow MPs time to scrutinise the list tabled by the minister and possibly authenticate directors of the listed companies.

“Given the level of interest in this matter, I defer this matter to allow members to acquaint (themselves) with the list and further interrogate its contents,” he ruled.

MPs Bonny Khalwale (Ikolomani, New Ford Kenya) and Jeremiah Kioni (Ndaragwa, PNU) doubted the list. Dr Khalwale, who chairs the parliamentary watchdog Public Accounts Committee (PAC), said the list should be signed by Trustees of the NCPB and the permanent secretaries for Agriculture, Treasury and Special Programmes.

The Ikolomani MP claimed a girlfriend of a powerful politician in the House was among beneficiaries of the maize scandal through her company, Waso Millers. The MP was, however, ruled out of order.

Mr Ababu Namwamba (Budalang’i, ODM) argued that the only way to end speculation that politicians were involved in the scandal was for the minister to give names of people that secured stocks from the NCPB reserves.

“He should also table the forensic audit by the Kenya Anti-Corruption Commission, Criminal Investigations Department and other state agencies and table them in the shortest time possible,” he said.

According to Mr Ruto, the tabled list was an updated one covering transactions that have taken place this month. The minister denied claims that NCPB had lost any grain stocks. “I want to set the record straight (on claims) that maize has disappeared from any of the reserve centres,” he said.

Mr John Mututho (Naivasha, Kanu), who had sought a ministerial statement on the issue, had claimed only 43,000 of the 150,000 bags allocated to millers by the government could be accounted for.

Strategic reserve

Mr Ruto defended the government’s decision to import more maize noting that the move was aimed at boosting the local national strategic reserves and guarding against high flour cost.

“We are paying a higher price importing more maize because we have no choice,” the minister said. “If we don’t do this then we pave way for high prices of flour and the inflation will rise to levels we cannot afford.”

Strategic grain reserves and famine relief stocks held at NCPB currently stand at 784,113 bags, the minister said, adding that private traders and millers held 3,134, 625 bags.

He also gave the House a highlight of the maize importation status indicating that 44,732 (90 kilogramme) bags of maize had been imported from Tanzania and 1.5 million bags from South Africa.

The same is sold at Sh1,665 a bag for stocks imported from Tanzania and Sh3,741 for that coming from South Africa.

The high cost, according to the minister, reflects the costs of transport and handling standing at Sh1,091 and Sh1,210 from the two countries, respectively.

Locally, the Government has put the recommended selling price of a 90 kilogramme bag of maize at a lower price of Sh1,950, taking into consideration the cost of production and transportation.

“There are an estimated 3 million bags with farmers awaiting sale to NCPB or willing buyers,” he said. Cherangany MP Mr Joshua Kutuny, however, claimed farmers had refused to sell their produce until the local price was enhanced, allegations denied by the minister.

“We are actually buying 20-28,000 bags from farmers everyday,” the minister said. As of Wednesday, he said, NCPB had bought 600,000 bags from farmers at a cost of Sh1.3 billion.

Others who raised concern were Mr Cyrus Jirongo (Lugari, Kaddu), Mr Gitobu Imanyara (Imenti Central, CCU), Mr Ali Bahari (Isiolo South, Kanu), Mr George Thuo (Juja, PNU) , Mr Kiema Kilonzo (Mutito, ODM-Kenya).

Mr Jirongo questioned whether any maize had been exported to Sudan and sought to know for how long the current stocks would last the nation.

MPs who put Mr Murungi on spot accused him of negligence. He pledged to restructure the Kenya Pipeline Company to prevent future scandals in the petroleum sector.

The chair of the Finance Committee Mr Chris Okemo (Nambale, ODM) said the mere fact that it took the ministry a long time to detect a fraud was a sign of complicity.

“How come the daily stock-level reports that are presented to the ministry could not reveal a building scandal?” Mr Okemo asked.

The rationale of engaging the Kenya Anti-Corruption Commission when it could not prosecute was also questioned. Mr David Ngugi (Kinangop, Sisi kwa Sisi) wanted to know how the trustees of Kenya Pipeline were caught napping, when oil worth Sh7.6 billion was being stolen.

However, Mr Murungi said all the figures were falsified and that even the auditors could not detect the fraud, until the operations manager at the Kenya Pipeline was sacked.

Mr Murungi told the august House that the KPC board, on which Energy Permanent Secretary Patrick Wanyoike also sits, was misled because the matter was being run at the operations department of Kenya Pipeline.

2005 resignation

Recalling his 2005 resignation over the Anglo Leasing scandal, Mr Murungi asked MPs to wait for the investigation report before commenting on the issue.

“I was at home for nine months on allegations that I was interfering with investigations, I have no intention of going back. Let’s leave investigation to the agencies,” Mr Murungi said.

He was responding to demands by Musikari Kombo (nominated, PNU) who had demanded the sacking of all those who had been suspended, saying that they could interfere with investigation.

Also, Mr Murungi said that the joint investigation between the KACC, Interpol and the Criminal Investigation Department was meant to ensure quick investigation and consequent prosecution.

The managing director of KPC has since been suspended alongside other officials in the company to pave way for investigations.

PriceWaterhouseCoopers has been appointed to carry out a forensic audit on the Triton saga that the minister has termed “a serious crime of dishonesty and fraud”.

Mr Murungi said he did not know the whereabouts of Triton owner, Yagnesh Devani. The December oil shortage has been attributed to the saga in which 126.5 million litres of oil were lost, but the Energy minister said the fuel shortage was due to machine failures at the Kipevu terminal, Samburu terminal and power blackouts.