Kiraitu Murungi

All parliamentary appearances

Entries 1061 to 1070 of 1237.

• 22 Jan 2009 in National Assembly: When the NARC Government came to power in 2003, it was concerned that the oil industry was dominated by foreign marketing companies. The Government was determined to assist small upcoming local oil marketing companies to enter the oil marketing business. Upcoming local oil marketing companies were unable to compete with the established oil marketing companies, because they were poorly capitalised and, therefore, lacked the necessary funds to import crude oil and other oil products. view
• 22 Jan 2009 in National Assembly: Mr. Speaker, Sir, the local oil companies at that time brought crude oil from oil majors for processing at the Kenya Petroleum Refinery (KPR) Limited at a premium of US$4 per tonne above the landed cost. These local companies also imported products from the same oil majors at prices which made it virtually impossible for them to grow financially and to compete effectively in the domestic oil market. view
• 22 Jan 2009 in National Assembly: To address this situation, and so as to empower indigenous oil marketing companies to participate in the oil marketing business, the Minister for Energy then, under Legal Notice 197 of 2003, introduced what we call the Open Tender System (OTS) for importation of petroleum, both crude and other refined products. With the introduction of the OTS, small oil companies stopped paying the price premiums to oil majors for imported crude and other oil products. view
• 22 Jan 2009 in National Assembly: Mr. Speaker, Sir, many oil marketing companies, including Triton, have imported petroleum products into Kenya through the OTS since it was introduced in this country in the year 2003, with very commendable results. The average total consumption of petroleum products in the country today stands at 3.7 million metric tonnes per annum. Seventy per cent of this product is imported through the OTS. view
• 22 Jan 2009 in National Assembly: The local oil companies, among others, are required to access credit to import these huge volumes of petroleum products. To overcome this challenge, both the Kenya Pipeline Company and the local and international financiers developed what we call the Collateral Financing Arrangements (CFA) in the year 2004 to enable the petroleum companies to access credit for importing huge quantities of imported oil products. view
• 22 Jan 2009 in National Assembly: Mr. Speaker, Sir, the CFA agreement enables oil importing companies to access credit from banks and international oil suppliers to finance importation of oil products. To cut a long story short, under the CFA, oil is held in trust by the Kenya Pipeline Company (KPC) for the financiers for an average of 30th days. It is only released to buyers upon written instructions of these financiers. Therefore, the KPC holds imported oil products in trust for the financiers until it authorises, in writing, release of those products to the importers. view
• 22 Jan 2009 in National Assembly: Several oil marketing companies, including Kenol/Kobil, National Oil Corporation (NOC), Triton, Gulf Energy and other petroleum companies, have benefitted from the CFA since it was introduced in July, 2004. Simply, what has happened in this case is a serious crime of dishonesty and fraud. Some of the employees of the KPC colluded with Triton Petroleum Company, which is owned by one Mr. Jagnesh Devani, to release oil products held by the KPC in trust for Triton's financiers Triton Petroleum Company without written authority of those financiers. Ja nuary 22, 2009 PARLIAMENTAR Y DEBATES view
• 22 Jan 2009 in National Assembly: Mr. Speaker, Sir, another four minutes or so. view
• 22 Jan 2009 in National Assembly: Mr. Speaker, Sir, this letter was brought to my attention on 5th January, 2009, by my Permanent Secretary. I immediately summoned the Managing Director to brief me on the matter and after listening to him, I instructed him to call an urgent board meeting to deliberate on the matter. The Board met on Wednesday, 7th January, 2009, and briefed me on the same day in the afternoon. The following was the brief:- view
• 22 Jan 2009 in National Assembly: The Board informed me that the Board itself was not aware that any products had been released to Triton. The Board also expressed its concern that the management had kept it in total darkness about the operations of the CFA with Triton and other companies. The Board, among other things, resolved that the Kenya Anti-Corruption Commission be asked to investigate the matter with a view to prosecuting all those involved and also, with a view to tracing and recovering any assets illegally acquired by Triton and others. The board also recommended that PriceWaterHouse Coopers be hired immediately to carry out ... view