Details have emerged that PetroKenya Oil could be a victim of circumstances in the NYS scandal after a misunderstanding with the authorities of the National Youth Service (NYS).
According to documents obtained by Kahawa Tungu’s Investigative Desk, the NYS delayed payment meant for PetroKenya, which had been subcontracted by Horizontal Limited.
In turn, PetroKenya was forced to acquire a loan of Ksh53,500,000 from Equity Bank to service its creditors. With NYS still holding payments, PetroKenya was unable to service the loan as of August 31, 2016, prompting the bank to launch a formal demand of the loan through writing.
“We hereby demand immediate repayment of the outstanding balance of Ksh33,751,418 being in the amount due to the bank from you as at 31st August 2016. Interest continues to accrue on the said amount of Ksh33,751,418 at the rate of 21% per annum with an additional default interest at the rate of 6% per annum compounded with monthly rests until payment in full,” read a letter by the creditor bank to PetroKenya Company dated August 31, 2016.
Pressed between a rock and a hard place, PetroKenya was forced to seek legal redress in the matter.
A court Order dated December 5, 2017 reveals that NYS, through Horizontal Limited, who had subcontracted PetroKenya Oil Company, were ordered to pay them (PetroKenya). NYS was the garnishee in the case – a third party who is instructed by way of legal notice to surrender money to settle a debt or claim.
In the order, Lady Justice O Sewe ordered that “the debt due from the garnishee to the Judgement Debtor be attached in the National Youth Service, through its Director or Chief Officer.”
However, in her affidavit, suspended Youth Affairs Permanent Secretary Lilian Mbogo Omollo states that she was coerced to effect the payments by highly placed persons in the government.
As reported in a local daily, Omollo has blamed her woes on among other things, a push to release payment to PetroKenya and Horizon Ltd for supply of fuel which she had stopped. She also blames resistance to verification of payments.
On its side, PetroKenya through their Chief Executive Gor Semelang’o, says that all they did was to supply what Horizon asked for.
“I delivered the fuel to NYS in the tender awarded to Gethi’s (Ben Gethi) Horizon Ltd, but we did not know he would be unable to pay for it. Once I get the order, the buyer asks me where they want the fuel delivered and I take it there,” says Semelang’o, as quoted by the Standard.
Yesterday, three MPs led by Nyali MP Mohamed Ali named 40 companies and a number of individuals that are adversely linked to the NYS scandal. Led by Kirinyaga Governor Ann Waiguru, some firms and individuals have resolved to sue the legislators for defamation. Others are yet to issue official statements concerning the mentions.
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