This archive report was first published on 29 September 2019.
On September 29, 2019, it was revealed that OiLibya, now operating as Ola Energy, had lost a staggering 8.5 million litres of fuel between 2012 and 2014 in a racket at the Nairobi terminal.
The racket involved the company's own employees, Kenya Pipeline Company staff, and KenGen workers, who conspired to siphon off the fuel while its managers turned a blind eye.
A Deloitte audit, conducted at the company's behest, revealed the extent of the ploy, which involved fake book entries and discrepancies in fuel stock adjustments.
According to court papers, the racket was run by Nairobi Terminal Stocks Accountants, who made false entries to show that OiLibya fuel stock had been returned to storage when in fact it had been loaded onto KenGen vehicles and carted off.
Several discrepancies were discovered during internal audits, including erroneous adjustments to fuel stocks by Kenya Pipeline Company.
Deloitte's forensic audit, conducted in March 2015, revealed even higher leakages of 2.8 million, 3.6 million, and 2.1 million litres of Gasoil diesel, Super Petrol, and Kerosene respectively.
Former OiLibya manager Paul Mwaponda was fired after the incident but successfully challenged his dismissal in court, and was awarded Sh9.8 million for unlawful termination.
