Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1142252,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1142252/?format=api",
    "text_counter": 18,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "the Open Tender System (OTS) that was deployed from 2005, as a system for regulating importation of refined petroleum products. The petitioner laments that even though the system is dubbed “open”, the manner in which it is run remains opaque, shrouded in secrecy and susceptible to abuse by cartels. He is particularly concerned that the current pricing mechanism does not make necessary disclosures on the procurement of fuel products, which makes it almost impossible to determine the prices at which Kenya secures its refined petroleum products vis-à-vis the prevailing global oil prices. Hon. Members, the petitioner claims that whereas the intended purposes of the OTS was to ensure that petroleum products, whose prices are regulated on a monthly basis in Kenya, remain competitive as per market conditions, data from the Energy and Petroleum Regulatory Authority (EPRA) indicates that only 13 out of a possible 96 oil marketing companies (OMCs) participate in the monthly OTS tenders. The petitioner also alleges that there are credible reports that the said oil companies unfairly dominate the OTS through anti-competitive cartel-like behaviour, which denies consumers the benefits of competitive pricing. In addition, the petitioner avers that neither the Ministry of Petroleum and Mining nor EPRA have made sufficient public disclosure of information relating to the tenders, including when the tenders were floated, when bids were received, the evaluation of the bids, the sizes of the cargo, past winners and beneficial owners of the winning bidders. Hon. Members, the petitioner is worried that the current situation contradicts the right to access to information enshrined in Article 35 of the Constitution of Kenya as well as the national values and principles of governance on public participation, transparency and accountability provided in Article 10 of the Constitution as well as the President’s Executive Order of 13th June 2018, on ‘Procurement of Public Goods, Works and Services by Public Entities’ that require all public institutions to publish full details of tenders and awards, including the directors of the winning companies. The petitioners is therefore seeking the intervention of the National Assembly to inquire into the operations of the OTP for procurement of refined petroleum products among other reliefs as follow: (1) intervenes through the Ministry of Energy and Petroleum to put in place measures for proper oversight of the operations of the OTS in order to ensure that the system promotes free and fair tendering processes that benefit consumers of fuel products through competitive pricing; (2) develops necessary legislative framework to align the activities of monthly OTS with the national values and principles of governance on public participation, transparency and accountability and in order to secure consumer rights and guarantee the right of access to information; (3) causes the Ministry of Energy, EPRA and other relevant Government agencies to make necessary disclosures on fuel imports made through the OTS, including ensuring public notification of all OTS awards and details of pricing for imported fuel products vis-à-vis the prevailing market prices; and, (4) recommends to the Competition Authority of Kenya (CMA) to inquire into alleged dominance of the OTS and price manipulation by certain OMCs in order to flush out firms involved in uncompetitive practices and to level the playing ground for all oil marketing firms. Hon. Members, having determined that the matters raised by the petitioner are well within the authority of this House, I order that, pursuant to the provisions of Standing Order 227(1), this Petition be committed to the Departmental Committee on Energy. The Committee is required to The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}