Whenever ODM-affiliated bloggers begin to collectively get their online knickers in a bunch over a certain story, it gives reason to pause and consider. They ordinarily come at you in a very aggressive style, no-holds-barred manner, with the intent to shock and awe. It’s normally a thinly veiled attempt to cover the ass of some ODM big-wig who might be caught up in the crosshairs of an unfolding story.
Obviously no one has told them that this full-frontal attack doesn’t really work, it just hardens the resolve of those being targeted, otherwise with such tactics in full effect politically, wouldn’t RAO already have become President of Kenya at least once?
So, what the hell has stirred the hornets’ nest inside the Orange party about the National Oil Corporation (NOCK) expose that we are running currently, to warrant it (ODM) to unleash its online attack-dogs with the most vile and venomous vigor?
Could it be a red-herring to pre-empt the mention of NOCK Board member Caroli Omondi in connection with any impropriety associated with the pornographic level of looting that is going on there?
Everyone knows the Caroli Omondi is a front for ODM boss Raila Odinga, having been his private secretary and point-man during the Kibaki first term. We all remember how it was reported that he was seen or apprehended with a car-boot full of stacked bank notes, whose destination remains a mystery today.
To say the least, Caroli is RAOs most prolific and trusted financial bag-man and his insertion into the NOCK Board (a Kikuyu affair) represents the coming full circle of the “handshake” between Uhuru Kenyatta and Raila Odinga.
The greatest fear within the Orange Party would therefore be, that for the last year or so, it has spent a lot of political capital to project WSR and members of the Kalenjin community as irredeemably corrupt (actually, rabidly possessed by the demon of looting) and therefore unworthy of the Kenyan Presidency.
The Orange Party can therefore not afford to be associated, in any way or form, with the perception of corruption like “those Kalenjin”, even if they are its beneficiary by proxy.
Remember, the Luo and Kalenjin are the most politically unreasonable communities, prone to resolving disagreements violently.
Could the “handshake” actually be a ploy by the “looting elite” to cover their retreat by fomenting a crisis similar to the 2007/2008 PEV, by pitting the two communities against each other, especially since they border each other, and in the process take attention away from the looters.
Any talk afterwards about Eurobond, SGR inflation, Dams and all the mega-scams that have taken Kenyan debt from Sh. 500bn to 6 trillion with nothing to show for it, will be superseded by the violent political crisis.
The international community will be roped in to help quell the problem, the Christian church will be an accomplice, calling attention of Kenyans to that crisis while in the background, the looters will secure themselves and the pertinent questions of the day (the loss of Kenyan money) will be swept under the carpet.
Whomever takes over the country post-2022 will get a broken piece of junk to wrestle with, a huge, restless and unemployed youth population that will continually light political fires and Chinese creditors aggressively trying to acquire National strategic assets, which the moronic looting class has put up as collateral for the loans.
It matters little that these politicians have absolutely no qualms using their voting machines as canon-fodder in the actual blood-letting, this time they will be very clever to ensure repercussions like ICC don’t catch up with them..
So please…don’t believe the hype!
I have always maintained that NOCK is not your regular parastatal but rather an organisation of serious strategic value to the Kenyan economy and it even gets protection from the highest offices in the land.
Caption: Letter from OP instructing all other parastatals to procure fuel exclusively from NOCK in the highest form of Government protectionism.
Therefore you can understand the consternation when news of the pilferage of fuel from NOCK by insiders first broke out, NOCK dutifully did a physical stock take to ascertain the status of fuel products in their storage.
After completion of the physical stock-take, a comparative with the Oracle ERP system stock led to a shocking discovery. There was a shortfall between the stocks in the system and the physical count, estimated to be in excess of 19.4 million litres of fuel whose value was Ksh. 1.4 Billion.
Where had all this fuel gone and how had the Auditor-General allowed this matter to go un-flagged in his annual reports, where he consistently maintained that the books of NOCK had been well kept and reflected a true financial position of the company?
How can a Board of some of the most educated and experienced Kenyans allow such pilferage to take place under their watch unless they too have sunk to this crude and primitive level of wealth accumulation?
Is the Auditor-General Edward Ouko on the take as well?
To illustrate just how NOCK Board members and management collude with outsiders to steal fuel stocks and rip-off their clients by invoicing for ghost fuel, sample the story of this company…
Which perpetrated the theft of approximately 3,224,837 litres (equivalent 24% of total fuel products -13,622,705 litres) in Mombasa alone. The company was further compensated at a rate of KES 3.09/Litre equivalent to KES 42,094,159 for the entire 13.6m litres, in the form of site management surcharge.
In the process (and to underscore the lunacy within the system) a 3rd party company was compensated for their collaboration in managing the Board-sanctioned fuel diversion through a remuneration rate of KES 3.09 per Litre equivalent of KES 42,094,159.32 (for the entire 13.6m lts) which is disguised as site management sur-charge.
The company in question is GREAT WHITE INVESTMENT LTD which has a particularly shady and controversial past, as first reported by the website www.kenyan-herald.com
The company was registered in 29/11/2007 by, Azim Taibjee and Madhav Bhalla. At some point in 2010, the two resigned as shareholders and Directors and sold shares to Italians Luigi Magno and Giuseppe Bozolasco who are the current shareholders and Directors. The company is registered as Great White Investments Limited (C. 148037).
On 8/12/2012, James Mwangi Wambui, Mitchell Wambui Mwangi, Neil Gikonyo Mwangi and YZavier Foro Mwangi registered a company with a similar name with a registration number CPR/2012/88558. The company has James Mwangi Wambui as the majority Shareholder (94 shares) and Mitchell, Yzavier and Neil with 2 shares each. David Mwangi Muriuki is registered as a Director.
Due to the conflict in the names, and it’s unclear how the Registrar of companies allowed this to happen, the second company, owned by James Mwangi Wambui et al was supposedly archived, thus effectively struck off the company registry as a registered company.
It is this 2nd company that entered into contract with National Oil Corporation on 31st October 2016 to offer Transportation and site management services in regards to the KPA contract.
Obviously, the second company does not exist in Law thus has no capacity to enter into any binding contract, but while in the throes of the orgasm of corruption, it is normally impossible to see, hear or speak any evil.
How then can a de-registered company enter a valid contract with a strategic state corporation? Did the company forge CR12 and annual company returns or did Pauline Kimotho (NOCK Company Secretary & Head of Legal) not even bother to conduct a basic search at company registry at Sheria House?
Caption: Signature page of the contract between Great White Investments Ltd and NOCK, signed by Company Secretary Pauline Wamuyu Kimotho
The contract between GWI and NOCK has been signed by James Mwangi and David Muriuki in 1st October 2016 and was to run for 3 years to 30th September 2019.
The contract brought GWI on board to provide transport and on-site logistics at the Kenya Ports Authourity (KPA) stations located at Kapenguria fuelling Stn, Nairobi Container Terminal and Kipevu Container Terminal (or any other KPA station).
GWI even blatantly falsified and uttered false statements in their bid response declarations about their competency and capacity regarding technical, knowledge, equipment, suitable skills, appropriate organization and personnel and adequate financial means to perform its obligations under the contract.
The idea was that NOCK would supply fuel to the KPA stations on a consignement basis and NOCK would then manage these consignments through a 3rd party agent, in this case GWI.
GWI would collect the fuel from NOCK depot and deliver them to the KPA sites, and further, they would do the job of dispensing the fuel for the consumption of the KPA vehicles and other assets.
GWI would be paid in the following terms
– 250,000/- per fuel distribution bowser per month in each KPA depot
– Site management fee of Ksh. 2.40 per litre of fuel collected from NOCK
– Additionally, transport fee of Ksh. 0.69 per litre of fuel.
NOCKs own internal audit was very clear that it found this new business model quite costly compared to what NOCK was doing with KENGEN, where NOCK woud employ a station manager manage the depot and then use its own internal transport system to deliver the fuel.
In the last case, the losses were fewer and costs much lower.
It is estimated that within the first 2 years of the contract with GWI, NOCK has lost an estimated Ksh. 383,425,259 through a racket where GWI collects fuel and only partially delivers it to the various depots, the company then siphons a huge chunk of the fuel into the black market, where they are paid a near market rate.
Caption: An example of losses incurred by NOCK through outright theft at Mombasa Terminal over a one month period.
Over and above this, GWI then invoices NOCK for the full amount of fuel collected monthly by applying the rate of Ksh. 3.09 per litre.
GWI refuses to keep records of its fuelling at KPA depots or forges documents in an attempt to shore up the story that it supplied fuel.
Sadly, on the basis of these documents, NOCK then invoices KPA to make payments for fuel that was never delivered and was spirited away into the black market.
KPA obviously has very weak internal systems that allow them to make payments based solely on forged documents and reliance on the documentation from their suppliers.
Not so the GEOTHERMAL DEVELOPMENT CORPORATION (GDC) who put up a spirited fight and refused to make payments based on fictitious documents sent through by NOCK.
Caption: Acceptance letter from GDC appointing NOCK as a fuel supplier
GDC system was water-tight and it kept a consistent stream of documents to cross-verify each other and avert internal collusion.
To make its case, GDC had in place authenticated delivery notes for fuel trucks, gate pass movement registers with registration details of all vehicles, drilling logs for each rig that was supplied…heck, and they even had standby eye-witnesses to verify when how the delivery of fuel by NOCK was done.
The transport company engaged by NOCK to do the deliveries was BRITS FREIGHTERS LTD.
Following a site visit to GDC rigs to verify the information, NOCK internal audit submitted a report to their CEO admitting to the fact that fuel had not been delivered to the GDC sites.
For instance, the team discovered that BRITS had manufactured a GDC “goods received” stamp and fake delivery notes which they presented back to their offices.
They would also use names of security officers from genuine documents and use them in the fake receipt documents, while in actual fact those employees were NEVER on duty during those days.
It was discovered that 149, 977 litres of fuel costing 15 million shillings had been stolen by BRITS FREIGHTERS LTD in this way.
NOCK therefore, egg-in-face, did what all poorly managed entities would do – look for someone to blame!
In this case, NOCK fired off a letter to BRITS claiming 15 million shillings that had allegedly been stolen and promisingto recover the same from invoices owed to BRITS.
Caption: NOCK demand letter to BRITS on the loss of 149,377 litres of fuel meant for the Geothermal Development Corporation
Who else sees a very cavalier attitude towards Ksh. 15 million worth of goods such that there is apparently no follow-up on delivery and the problem only gets noticed during the invoice cycle, which could even be 6 – 8 weeks later?
NOCK even goes further to list the names of the drivers (Christopher Chege Michuki, Peter Thwara Wanjiru and Stephen Chege…(Hmmm, whats the common factor here?)And asks BRITS to ensure they are never allowed to operate trucks doing delivery for NOCK.
So audacious are these thieves who make away with close to 150,000 litres of fuel without detection for close to 2 months and neither the NOCK nor BRITS management is the wiser? What do those managers earn their salaries for?
This is the only solution left for these thugs
