Oil companies on spot over Sh754 million remittance

Eight oil companies have been reprimanded for failing to remit their annual training and surface fees amounting to Sh754 million.

Members of the National Assembly's Public Accounts Committee yesterday raised concerns over laxity by the Energy ministry to recover the money from the firms.

The firms signed a Production Sharing Contract that required them to pay surface and training fees to the ministry on or before the start of the contract year. Late payment attracts interests.

Energy PS Joseph Njoroge was hard-pressed by MPs to explain why the ministry had not recovered the money.

Mr Njoroge said the ministry had engaged the companies to recover the money. “I agree, the money should have been collected and sanctions issued against the companies for nonpayment,” said the PS.

The MPs claimed there could be a scheme to protect the firms from remitting the money, citing lack of legal action by the ministry.

Committee chairman Opiyo Wandayi (Ugunja), directed the PS to provide details of the companies and their directorship tomorrow.

Meanwhile, Auditor General Edward Ouko told the committee he was concerned that the National Assembly was yet to hire an external auditor to look into its accounts.

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Sh754 millionNational AssemblyEnergy ministryMPsJoseph Njoroge