Business News
Pipeline manager suspended over oil crisis
Kenya Pipeline Company has suspended a senior manager for allegedly stopping pumping of petroleum products inland from Mombasa.
Energy permanent secretary Patrick Nyoike on Saturday confirmed that KPC suspended its operations manager Peter Mecha on Friday for stopping the pumping of fuel on New Year’s eve, allegedly without the approval of managing director George Okungu.
The state corporation usually stops pumping for stocktaking of refined oil products within the pipeline system and all depots every year on December 31. But Mr Mecha’s move is said to have been ill-advised especially at this time when the country is experiencing a shortage of petroleum products.
Proper procedures
“Mr Mecha has been suspended, as stopping pumping of fuel was serious. He did not follow the proper procedures,” Mr Nyoike said on telephone. Mr Okungu could not be reached for comment.
The Mombasa-Nairobi pipeline capacity enhancement project, which was commissioned on November 26, 2008 to double fuel flow rate from 440 cubic metres per hour, is yet to attain its target even as fuel demand increases.
Nairobi and other towns have for several weeks faced a fuel shortage, which has led to the government to accuse marketers of hoarding or failing to collect oil products from KPC depots.
But some oil marketers criticised KPC for the action on Mr Mecha saying stocktaking is an exercise that has been for many years.
They asked the government to address the factors affecting KPC’s delivery of fuel inland as a priority.
Industry players have blamed the fuel shortage partly on holding a lot of fuel stocks by Triton at Kipevu Oil Storage Facility (KOSF) in Mombasa, making it hard other companies to use the depot.
Triton Petroleum Company Ltd was last month put under receivership on December 19, 2008 under debentures the company had granted to secured lenders.
A sister firm, Triton Energy (K) Ltd, was also put under receivership on December 22, 2008, and Kereto Marima and Ian Small were appointed Joint Receivers.
Engen has written to the Energy permanent secretary seeking help to secure a consignment of diesel it had paid Triton for but had failed to get.
“They have put Engen under unreasonable duress, made us forgo sales and lose valuable time in pursuit of the stock without result. We have patiently waited for official communication from them for the last three weeks,” the letter said.
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The much touted capacity enhancement project did not work after gobbling a few billions shillings of tax payers money and the management of Kenya Pipeline and some mandarins at the Ministry of Energy have a lot to answer for especially after they dragged the president to makindu the other day to inaugurate a non existent project! The midnight end month is a KRA requirement and can only be waived by KRA. KPC has failed the Kenyan public and the management should be made to answer for it.
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The buck has to stop somewhere but not with a manager but with someone with discretionary authority! That is the MD! Questions are: did the MD advise the manager not to interrupt pumping? The manager seemed acting in good faith as by KPL practices. The MD did nothing to alter the practice. He is the only one with discretionary authority and answerable to the minister. This action is purely misdirected and will not solve the proble which is with the KPL CEO's problembs.
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