National Assembly majority leader Aden Duale yesterday implicated powerful people in the last government in a conspiracy with Essar Energy Overseas Ltd to fleece Kenyans of Sh15 billion.
He said the the public funds were for the privatisation of Kenya Petroleum Refineries Ltd. Although Duale did not name the "powerful" individuals, he said he has enough information to prove his allegations.
Speaking on the floor of the House, he said since Essar entered an agreement with KPRL, Kenyans have been forced to pay more for the petrol in the country. Duale said some Energy ministry officials in the Kibaki regime are to blame for the rising petrol prices.
"Big people in the last government conspired with Essar in a deal that continues to rip off Kenyans. It is even bigger than the notorious Goldenberg scandal."
The Public Investments Committee has summoned the refinery's management to appear on September 24 to explain the circumstances leading to the change of ownership from a public to private.
Dualle had sought the direction of Speaker Justin Muturi to have the matter investigated by a House committee to establish how much was paid for the sale and whether the deal was above board.
The refinery, whose value stands at over Sh3 billion, was allegedly sold in 2009 to Essar at only Sh258 million. Essar acquired a 50 per cent stake in KPRL, which was incorporated in 1960 under the name East African Oil Refineries Ltd on July 31, 2009.
Essar got its stake from BP, Royal Dutch Shell and Chevron in 2009. Duale said the Energy committee chaired by Kigumo MP Jamlcek Kamau has failed to conduct proper investigations into the issue yet Kenya has continued to lose billions of shillings.
Duale told the House he is ready to testify before the committee. Muturi directed that the Energy committee investigate the matter and table a report in 10 days. But later PIC chairman Adan Keynan said the matter is his committee's mandate and they have summoned the KPRL management.
"Anything touching on investments and audits of government bodies falls within the purview of PIC," said Keynan during the committee meeting. The matter was raised by Changamwe MP Omar Mwinyi. He said KPRL has not benefitted the local people.