Cash-strapped National Oil Corporation of Kenya dished out the highest value of gifts compared to other State agencies in the ended 2020/2021 financial year, a new report shows.
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Broke National Oil dishes out highest worth of gifts
Cash-strapped National Oil Corporation of Kenya (Nock) dished out the highest value of gifts compared to other State agencies in the ended 2020/2021 financial year, a new report shows, raising questions on the decisions of the agency’s managers.
A survey by the Public Service Commission (PSC) revealed that the parastatal gave out Sh6.75million worth of gifts —topping the list of gifters, followed by the Kenya Year Book Editorial Board and Kenya Institute of Public Policy and Research (Kippra) with Sh3.8 million and Sh2.4 million respectively.
Ironically, the broke national oil marketer is pushing for a Sh13 billion bailout from the National Treasury to pay bank loans and meet operating costs in the latest effort to remain afloat amid mounting losses.
The PSC said overall, 56 public institutions, or 21.4 percent of the 232 surveyed public agencies, gave out gifts worth a combined Sh21.72million during the fiscal year 2020/2021.
Financial prudence questioned
The expenditure on gifts by Nock puts to question the financial prudence of its management because the parastatal is broke and struggles to meet most of its obligations.
Only last week, Nock chief executive Gideon Morintat told Parliament that out of the Sh13 billion targeted bailout, Sh6.6 billion would be used to pay bank loans, Sh3 billion for operating costs, and a further Sh3 billion for oil exploration on Block 14T in the Rift Valley basin.
The chief executive told MPs that the parastatal risks closure if Treasury does not provide the funding in the next financial year starting July—an indication of the grave situation facing the agency.
‘If these things (bailout) do not happen, then the easiest thing to do is to close down Nock,” Mr Morintat told the National Assembly Committee on Energy.
Estimates by the Petroleum ministry show that Nock requires about Sh70 million to foot its monthly operating costs but struggles to raise the funds. This is compounded by competition from more efficient and financially endowed private marketers, including multinationals.
Nock slumped into a Sh689 million loss in the six months ended December amid projections that the losses would widen to Sh1.4billion for the full year.
