EPRA’s Daniel Kiptoo Faces MPs’ Firestorm Over Ksh.181M Irregular Spending
The Energy and Petroleum Regulatory Authority is under investigation regarding the alleged irregular procurement expenditure of Ksh.181 million for monitoring the quality of petroleum products such as kerosene on the local market during the Financial Years 2020 and 2021.
EPRA Director General Daniel Kiptoo, who appeared before the National Assembly Public Investment Committee on Commercial Affairs and Energy investigating the alleged irregularities, was accused by Legislators of not doing enough as the head of a crucial public agency to cushion Kenyans against the spike in fuel prices, despite assuring Parliament that prices of Crude Oil will decrease in the coming weeks and months.
The Auditor General’s office revealed to the committee the damning financial report of EPRA’s unsatisfactory expenditure of Ksh.181 million on a contract awarded to Intertek Testing Services Limited.
The Attorney General’s office informed the Parliamentary Energy watchdog that Ksh.65 million was spent in excess.
“Chair, we are not satisfied by EPRA’s explanation on how they spent the monies,” Fredrick Oluoch, Deputy Director in the Office of the Auditor General said.
Committee Chair Pkosing added: “Even us from where we sit are not satisfied.”
According to documents submitted to the Energy Committee, EPRA spent Ksh.181 million in three phases, with notable variations in Years 2 and 3, including a contentious addition of Ksh.62 million inclusive of VAT.
“Even with the inclusion of the VAT, the expenditure is still not fully satisfactory,” Oluoch added.
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In a rebuttal, EPRA chief Kiptoo stated, “The initial quotation did not include VAT and the variation caused by the Kenyan shilling to US Dollar exchange rate.”
“The anomaly would have been clarified during the audit stage by the office of the Attorney General.”
“Still with your many wordings of explanation, the bottom line remains the Auditor General is still not satisfied with your explanation which we will highlight in our report,” Committee Chair Pkosing said.
The head of the embattled EPRA was criticized by members of parliament for the government’s apparent lack of concrete interventions in response to the rise in petroleum prices; the new G to G model was deemed ineffective.
“Ordinary Kenyans out there are struggling due to the ever-rising cost of fuel… what are you doing as a regulator to cushion them?” Embakasi East MP Babu Owino said.
Rangwe Member of Parliament Gogo stated: “Stop speaking very good English Just tell us when Kenyans should expect the prices of fuel to drop.”
Kiptoo maintained that EPRA anticipates a decline in petroleum oil prices by their forecasts.
Every month, the EPRA conducts the Fuel Monitoring Program for two weeks by collecting samples from designated gas stations across the country. The samples are analyzed for signs of adulteration or disposal.
EPRA’s Daniel Kiptoo Faces MPs’ Firestorm Over Ksh.181M Irregular Spending
