Even as the war on corruption takes the fast lane and every indication is that President Uhuru Kenyatta is dismantling the corruption cartels, sparing of certain individuals and firms involved in graft is a case of one step forward, 10 steps back - quite literally.

One such company is Petro Kenya Oil Co Ltd which was paid Sh68,048,950 for supplying 500,000 litres of diesel light fuel to NYS through an already blacklisted company - Horizon Ltd reportedly owned by the chief architect of "NYS-1" scam - Mr Ben Gethi.

Petro Kenya Oil Co Ltd is linked to Mr Paul Gatecha, a key member of the extended First Family. The company does a lot of business with the Government through the Ministry of Energy.

It is unbelievable that the immediate former Attorney General Prof Githu Muigai, also linked to the First Family, on November 5, 2017 okayed the payment - in an arrangement without a precedent.

According to then AG, in a letter signed by Mr Charles Mutinda, suspended Public Service Ps Ms Lillian Mbogo-Omollo had written to the AG on September 28, 2017 seeking his advice on settlement of Sh52 million "owed to Horizon Ltd to enable it pay PetroKenya Oil Company Ltd for supply of oil products which is the subject matter of the contract between Horizon Ltd and National Youth Service (NYS)".

That the AG advised PetroKenya to be paid - for a sum they were owed by the another party within their own separate arrangement is mind boggling.

In itself, the AG was confessing that the contracted party (Horizon Ltd) did not have the capacity to supply what they were contracted. And that the AG literally became the debt collector for PetroKenya - from Horizon Ltd.

"The NYS does not deny that the amount of Sh52 million is due and owing to Horizon Ltd. Besides, the NYS vide a letter dated 28th September 2017 confirmed that PetroKenya did actually supply the oil products but has not paid the amount due and owing to Horizon Ltd to enable it settle PetroKenya's claim. In view of the above, admission, it is our considered view that the NYS does not have any reasonable grounds to mount a successful defence as against the claim. This claim continues to attract interest (27% p.a)', said the AG.

Then came the shocker from the AG - "In view of the above, NYS is advised to promptly settle the debt to avoid further escalation of costs and by consent of the parties the matter be marked as settled. Be advised accordingly". he concluded.

It was then a Mr Benard Masiga, for NYS Director General wrote a memo on January 26, 2018 to PS Lillian Omollo saying "Forwarded herewith are non-AGPO payment vouchers from the Department of NYS that have been verified and recommended for further processing and subsequent internet banking. M/s Naromoru River Lodge PV No. 2593 - Sh4,269,289.50 and M/s Petro Kenya Oil Co. Ltd PV No. 3595 - Sh68,048,950".

It is not clear how the funds that were owed to Horizon Ltd were directly paid to Petro Kenya Oil Co Ltd with additional Sh16,048,950 loaded on the billed amount of Sh52 million.

In a hand-written note by the PS Ms Omollo marked to the DG on November 11, 2017 - the PS says "please see my memo on this matter dated 6/11/17. Critical material information on Horizon Ltd and Petro Kenya was omitted (by AG). In our letter to the AG dated 28/9/2017...." 

From the scribbling, there was "... the letter from DCI/EACC on Horizon Ltd investigation".

With all these questions, it is not clear why DCI and DPP left out Petro Kenya Oil Co Ltd from prosecution - even with obvious incriminating information on the part of the AG, conflict of interest and the firm..

The other question: Who overruled the PS so as to authorize the illegal payment to Petro Kenya Oil Co Ltd?

Why did AG give a skewed opinion? Granted, there was admission of delivery but why should a private arrangement between Horizon Ltd and Petro Kenya Oil Co Ltd be subject of public interest?

Why didn't Horizon Ltd not sue NYS? On what locus did Petro Kenya Oil Co Ltd sue NYS and not Horizon Ltd?  

CLARIFICATION 

On the afternoon of Tuesday, June 4, we received a call from one Mr Gor Semelang'o saying that;

(a) he is a bonafide director of PetroKenya Oil Co. Ltd and that Mr Paul Gatecha is a stranger to the company

(b) PetroKenya Oil Co Ltd was paid on the basis of a Court order and that the amounts paid (which amount he declined to disclose) are not full and that the company is still in Court

Cofek, however still holds that the AG acted as though he was a lawyer for PetroKenya and that he omitted to consider the severe integrity questions on the part of Horizon Ltd. This was choreographed to have Horizon LPO turned into an LPO for PetroKenya. Public interest was forfeited on the part of the AG. 

NYS equally failed to demonstrate that they had undertaken background checks on Horizon Ltd. 

DCI and EACC needs to open investigation files on how the payment was paid to PetroKenya Oil Co Ltd 

 

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