MPs start Sh17bn oil import cash probe

Parliament has opened an inquiry into claims that the Treasury illegally withdrew Sh17 billion in June 2023 to bankroll private firms involved in a government-to-government fuel importation deal, including one linked to businesswoman Ann Njeri.

The Finance and National Planning Committee said it would investigate the alleged illegal withdrawal of Sh17 billion from the Consolidated Fund, being payment for fuel subsidies to private entities.

“The committee is seized of this matter and we have opened an inquiry. We will be meeting with all stakeholders starting with the Treasury Cabinet Secretary Njuguna Ndung’u and his Principal Secretary Chris Kiptoo next Tuesday,” said Benjamin Lang’at, the committee vice chairperson.

The inquiry by the committee chaired by Molo MP Kuria Kimani follows claims by Busia Senator Okiya Omutatah and Azimio Leader Raila Odinga that the government-financed Ms Njeri in the Sh17 billion fuel deal at the centre of controversy.

Authorised the withdrawal

Mr Omutatah claimed the government, through Prof Ndung’u authorised the withdrawal of Sh17.2 billion from the Consolidated Fund to subsidise a private enterprise.

He alleged the private enterprise financed by the taxpayer’s money was Ms Njoroge’s firm, which was funded in June to import the Sh17 billion diesel that is now subject to an ownership dispute.

Mr Odinga on Monday demanded the resignation of Energy and Petroleum Cabinet Secretary Davis Chirchir and Prof Ndung’u over the Sh17 billion diesel scandal.

The opposition leader claimed that the two Cabinet Secretaries had committed criminal offences, abused office, and gone against the Constitution.

“They stole money from the Consolidated Fund, in addition to spending monies way above what Parliament approved. They must not only resign. They must also be prosecuted,” he said.

Mr Odinga said the documents that Mr Omutatah holds show the withdrawal of Sh17.22 billion from the Consolidated Fund Services without the approval of Parliament.

“I concur with the Senator’s suspicion that Ms Njeri is the ‘private financial enterprises’ funded by the Sh17,224,718,632 illegally withdrawn from the Consolidated Fund and received by the Ministry of Petroleum,” he said.

Leeway for the national government 

Article 223 of the Constitution provides the leeway for the national government to spend monies that have not been appropriated by MPs if the amount appropriated for any purpose under the Appropriation Act is insufficient or a need has arisen for expenditure for a purpose for which no amount has been appropriated or money has been withdrawn from the Contingencies Fund.