in

How Great White Investments Engineered Disappearance Of Fuel Worth Ksh300 Million At National Oil

Detective are looking into the circumstances in which senior managers diverted fuel worth Ksh 300 million meant for Kenya Ports Authority to private stations.

According to officers within National Oil Corporation (NOC) and Kenya Ports Authority and without the knowledge of senior staff, the fuel which is believed to have been diverted by senior NOC executives led by CEO MaryJane Mwangi was diverted on transit despite KPA being the consignee.

Already the loss has led to raised tentacles with the investigators focusing on 24 months ending in July 2018. Most of the theft were carried out around election time ( June to November 2018).

National Oil Corporation is the sole supplier of fuel to government entities after President Uhuru’s order some time back.

The Corporation has several parastatals as its clients like Kengen, Kenya Railways, Kenya Ports Authority and even Tullow as one of their consumer based customers.

In these sites, the Corporation adopts the best strategy of managing these sites itself by having staff run the sites. These sites run in such a way that the Corporation has storage facilities within the parastatals establishments and delivers fuel to the site that the companies consume then they are billed after they are used for payment.

Read: No Money Was Lost In The Kisumu Oil Jetty – Ministry Of Petroleum Says

However, despite this being the best model, the current management decided to go into another model where they handed over the site based in KPA Mombasa to another company, Great White Investments Limited, to run the sites.

Documents at our disposal indicates that there has been losses running into millions of tax payers money at this site and the current CEO, MaryJane Mwangi has turned a blind eye into this.

An internal audit report done in 2017 and submitted to the arrogant CEO indicates that both the finance and internal audit flagged the losses by Great White Investments Limited at this site and even recommended that the Corporation reverse to its best model but this report was swept under the carpet by the CEO and was never presented to the board due to some interest that the CEO has in the management of this site.

In any Case, a search in the Energy Regulatory Commission (ERC) registers shows that the company is not registered as a Petroleum transporter and thus they do not qualify to handle the said contract. The tendering process was also ignored in awarding the tender to the company as there was not advertisement of the said tender.

It did not take long before this company being protected by MaryJane Mwangi stole a bigger loot running into millions of shillings again in 2018. Our sources tell us that the Corporation has lost more than Ksh300 million in theft of product by this same company Great White investments Limited and yet still operating normally due to the protection they get from the CEO.

As per the Internal Audit report dated October 2018, there is a reported loss of 2,189,569 litres of AGO(Diesel) and 125,892 Litres of PMS(Petrol), which the company opts to show as products in transit, yet there is nothing in transit.

This theft has been perpetrated by unscrupulous employees of Great White Investments Limited and National Oil internal staff in Mombasa at the watch of the CEO, where they prepare delivery notes (Orders) in the Oracle system and immediately cancel them without notifying the teams involved. These cancelled orders are then used to collect fuel from the National Oil terminals and then the fuel is sold to third parties. The total loss based on lost stocks is thus a value of Ksh330 million.

Read: Corruption, Sexual Harassment And Bullying Take Toll On International Planned Parenthood Federation, Nairobi Office

For the services rendered to National Oil, Great White Investments Limited have been paid over Ksh80 million for site management, transport of fuel and hire of bowsers.

The parastatal has current net Losses of over Ksh100 million. Indeed, the Internal Audit report of 2017 recommends to the CEO change of tact and managing the KPA contract like all the other contracts are managed without sub-contracting.

Our sources indicate that over Ksh400 million has been lost and kept under wraps, as more is set to sublime if the situation is not arrested.

The Corporation quietly somehow has engaged the services forensic Auditors to look into the said theft however, our sources tell us that MaryJane Mwangi has diverted this process to investigate current and former employees who she dislikes and who have no direct link with the theft in an aim to divert this to blame employee instead of invoking the contract with Great White Investments and have them pay for the losses then cancel the contract.

This is a way she is used to operating to divert the attention from the Corporations board from realizing her incompetence and inability to manage and the Corporations and yet this has seen the board to buy into this as they are tricked with international trips despite the fact that the Corporation has been making huge losses under her management.

In the Auditor general report for the financial year ended June 30, 2017, which is in our possession, the issue of non-reconciled stocks is raised by the Auditor General as it has negative effects on profitability of the organization. In fact, the use of book values of stocks without reconciling with actual inventory values is a disguise to hide the massive stock losses.

We obtained a copy of the contract that the CEO signed with this company Great white investments Limited and it indicates that this company will be responsible for all losses at the site and take responsibility of them.

However, MaryJane Mwangi is keen on blaming these staff who are helpless and are constantly threatened with sacking for their silence.

Also, an audit report done into current losses was designed so that blame goes to employees in the Mombasa office so that they can take the fall and she can have her way.

Read: Bad Debt Threatens To Bring Down National Bank

Several documents in our possession are documents forged by this company and used to steal product from the depots where the Corporation store product in Mombasa. All these have been kept a secret so that MaryJane Mwangi can get away with another theft at the Corporation and instead blame it on junior staff who she plans to take to the board and have them fired.

Given her poor management skills, the Corporation has constantly made losses yet she spends money flying board members and some close staff used to harass employees outside the country.

In the next episode, we shall tell you how the Great White Investment Ltd engineered the theft, under the node of the CEO.

Do you have a story you want told? Do you know of a sensitive story you would like us to get our hands on? Email your news TIPS to news@kahawatungu.com  Also WhatsApp 0708677607 with your news tips

Francis Muli

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. He believes in unearthing societal rots that have been hidden from the public eye. He has also carved himself a niche in writing business stories. He has worked for various organisations including Kenya Television Service, Business Today among others. Follow him on Twitter @FmuliKE.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Loading…

0

Comments

0 comments

rio ferdinand

Ex-Man United Defense Stalwart Rio Ferdinand Jets In For Kenya Tour

ig boinnet

IG Boinnet’s Driver Commits Suicide While On Sick Leave