CS Ndung’u no show as MPs seek answers on G-to-G oil deal
Njuguna Ndung’u, the cabinet secretary of the Treasury, was absent from Wednesday’s Senate hearing to address inquiries about the Government-to-Government petroleum supply agreement.
During the morning session, Ndung’u was one of three Cabinet secretaries who had been scheduled to face interrogation on the floor of the House.
Their summonses were honored by Kipchumba Murkomen (Transport) and Ababu Namwamba (Youth Affairs and Sports), his counterparts.
“We have received communication from the CS Treasury that he is engaged and not able to attend today. The questions to the CS to be deferred to next week Wednesday,” temporary Speaker and Garissa Senator Abdul Haji informed the House.
Haji refrained from offering any additional information regarding the specifics of Ndung’u’s involvement.
Kisii Senator Richard Onyonka anticipated receiving responses from the CS regarding the G-to-G agreement’s provisions, the countries or entities that are parties to it, and its duration.
The G-to-G agreement, which has persisted in generating intense discourse, involves the governments of Kenya, Saudi Arabia, and the United Arab Emirates Kingdom.
Additionally, Onyonka is interested in the agreement’s cost per liter of oil and its correlation with current market rates.
“Could the Cabinet Secretary state any discount or any other favorable terms the government has received as a result of the single-source purchase of oil, indicating the total savings the government has realized since the signing of the agreement,” the question on the order paper reads?
Raila Odinga, the leader of the opposition, asserted last week that the transaction is being facilitated by influential cartels operating within the government.
He argued that Kenya had entered into agreements with private companies and not Saudi Arabia or the United Arab Emirates.
“Why Ruto chose to characterize the deal as a G-to-G is the first red flag that points to mischief in this deal,” he said.
Kenya engaged in the agreement with Aramco Trading Fujairah FZE (ARAMCO), Abu Dhabi National Oil Company (ADNOC) Global Trading Ltd, and Emirates National Company (Singapore) Private Ltd (ENOC) on March 10, 2023. The terms of the agreement stipulated a 180-day deferred payment spread.
The agreement was ratified by the Ministry of Energy and Petroleum on behalf of the government to avert a nationwide petroleum shortage-induced closure.
Gulf Energy Limited, Galana Energies Limited, and Oryx Energies Kenya Limited were designated by the corporations as their local oil marketing partners by the Master Framework Agreement.
However, according to Raila, private entities would not be required to ratify the MOU if it were a government-to-government agreement.
“I want the government to show the Memorandum of Understanding signed between the republic of Kenya and the government of Kingdom of Saudi Arabia and the government of United Arab Emirates,” he said on November 17.
Additionally, Ndung’u was obligated to provide justifications for any accrued debts or financial obligations that may have developed since the government commenced oil procurement under the agreement. The details of these obligations, including their characteristics and anticipated repayment periods, were also to be disclosed.
His scheduled interrogation would have paralleled that of Ann Njoroge, the businesswoman at issue in the recent shipment of Sh17 billion worth of crude into the country.
Njoroge failed to appear as well. The Committee on Energy of the National Assembly, which was to hear her, was to be convened by Mwala MP Vincent Musyoka.
Njoroge was required to provide an account of the consignment’s proprietorship, country of origin, and intended destination.
As stated by Musyoka, the decision to initiate an investigation into the subject is predominately attributable to the enormous quantity of petroleum involved.
“Attention of the committee has been drawn to the ongoing discourse on the dispute over the ownership of an oil consignment allegedly imported by your company…the purpose of this letter is to invite you to the meeting that will take place at the mini-chamber on November 22, 2023,” the letter reads.
Thursday, Energy Cabinet Secretary Davis Chirchir has been extended an invitation to testify before the identical committee.
The consignment and the fuel agreement between the government and the government will be illuminated by Chirchir. Additionally, lawmakers have extended invitations to the directors of Galana Energies.
In addition to ensuring a reliable petroleum supply for the country, President William Ruto has defended the G-to-G oil deal because it will enable domestic energy companies to purchase petroleum in local currency.
Ruto declared the transaction to be ethical and demanded that opposition leaders substantiate any allegations of collusion in the undertaking.
“On the issue of fuel, I must explain to Kenyans, let us desist from petty politics and propaganda. They [opposition] are telling us that we must prove that this transaction between Kenya and international oil companies is above board,” he said.
“I want to tell them to avoid lies, rumors, speculations, and propaganda, say the truth,” he added.
CS Ndung’u no show as MPs seek answers on G-to-G oil deal