A scheduled session by the Public Investments Committee on Commercial Affairs and Energy to examine the financial health of the National Oil Corporation of Kenya (NOCK) failed to proceed Wednesday after lawmakers raised serious concerns over the state and future of the parastatal.
The Committee, chaired by Pokot South MP Hon. David Pkosing, was set to examine NOCK’s Audited Accounts for the Financial Years 2018/19 to 2022/23.
However, the meeting was postponed to Thursday, after the Committee resolved that more scrutiny was needed into what Members described as a “dead” agency, citing a lack of clarity in its operations and finances.
In a tense session, members questioned the corporation’s recent move to enter into a KSh 3 billion debt agreement with oil marketer Rubis Energy, aimed at reviving NOCK’s struggling operations.
The NOCK CEO, Mr. Leparan Gideon Ole Morintat, who appeared before the Committee, admitted that the State-owned oil firm is in dire financial straits.
He said that the agreement with Rubis was intended to help NOCK settle its outstanding debts and "get back to its knees."But MPs were unconvinced. The Committee through the Chairperson, immediately directed the Auditor General to carry out a special audit of NOCK’s operations and contracts, particularly the one with Rubis within two weeks.
“We are being informed that they have an existing contract. There is crucial information we need as Members of this Committee to understand what exactly is ailing NOCK and whether it can be salvaged.” said Embakasi East MP Hon. Babu Owino.
The lawmakers demanded full disclosure of the transaction, with concerns raised over the contract’s terms, loan management, and whether Rubis had a hidden interest in acquiring the corporation.
Hon. Adan Keynan (Eldas MP) stressed that the Committee’s mandate is to ensure value for public funds.
“We know someone might be out there trying to grab NOCK, just like Telkom Kenya which, up to today, we still don’t know who owns,” said Keynan.“Borrowing KSh 3 billion from a private entity like Rubis to resuscitate NOCK is criminal. Whoever is pushing this deal is a saboteur,” he added.
The Chairman, Hon. Pkosing, raised alarm over the Treasury’s apparent silence on the matter, questioning why the government would allow a private player to step in rather than provide a bailout.
“Why can’t the National Treasury step in with the KSh 3 billion? Are there hidden interests?” he posed. “This Committee recently halted a Public-Private Partnership (PPP) between the Kenya Airports Authority and Adani Group after irregularities were raised. We will do the same here if necessary.”Hon. Babu, in an emotional metaphor, claimed: “NOCK was abducted and killed. All that remains is to plant flowers at its grave.”
The Committee resolved to interrogate NOCK afresh tomorrow, after deliberating internally on the next steps. Until then, they directed that all transactions involving NOCK, especially the controversial Rubis deal, be frozen.
“Looking at this issue holistically, we want all NOCK operations halted until the Committee makes a decision,” added Keynan.The Committee is determined to unearth the full truth behind NOCK’s financial woes and to prevent what Members see as an impending sell-off masked as a rescue deal.
“We, as Parliament, are a key arm of government. The Executive may make decisions, but it is our job to interrogate those decisions and ensure there is value for taxpayers’ money.” said Hon. Keynan.