This archive report was first published on 30 August 2019.
On August 30, 2019, a parliamentary committee in Kenya heard allegations of irregular oil procurement by the Treasury.
The Treasury had directed the Attorney General's office to source oil worth Sh143,844,069 from the National Oil Corporation (NOC), despite having a valid contract with M/S RH Devani Limited.
Appearing before the Public Accounts Committee (PAC) of the National Assembly, Solicitor-General Ken Ogeto explained that the Treasury had ignored a contract between Devani Limited and the Transport ministry to supply fuel to government ministries, departments, and agencies during the 2016/17 financial year.
"This is the dilemma we had because there already existed a binding agreement with Devani for the supply of oil. A breach of this contract could have cost the government a huge sum of money," Mr Ogeto told the committee.
The State Law Office was unable to explain why it failed to notify the Treasury of the contract and the potential legal redress and attendant costs had the Devani contract been breached.
