Oil dealers risk govt sanctions over Sh754m service fees

Eight local oil dealers risk being sanctioned by the government for failing to remit their statutory annual training contributions as well as service fees amounting to Sh754.1 million.

Energy Principal Secretary Joseph Njoroge issued this warning before the National Assembly Public Accounts Committee (PAC) on Tuesday, noting not one will be spared.

Mr Njoroge listed three organisations - Lion Petroleum Corporation, A-Z Limited and Rift Kenya Limited - as among those yet to comply with the legal requirement.

“This money should have been collected and sanctions issued against the eight companies for non-payment of the statutory fees,” the PS told the watchdog committee chaired by Ugunja MP Opiyo Wandayi.

He said, however, that the ministry was consulting the companies on why their non-compliance.

REVENUE

There has been concern that the ministry deliberately failed to ensure the government got the revenue for projects.

Regarding this, Mr Njoroge assured the committee that it had not neglected its duties and was doing everything possible to ensure no loss of public money.

“Reminder letters have been sent to the companies [so they can] honour their contribution obligations. However, we are yet to receive their responses,” he said.

The committee members wondered why there had been delays in the recovery of the money yet the matter was raised by Auditor-General Edward Ouko in his report for the 2015/16 financial year.

The legislators asked Mr Njoroge to return on Thursday morning to give details of companies that have complied with the law so far.