Ministry officials caught up in controversial oil contract

By Dann Okoth

Confusion gripped the petroleum industry into the weekend as more questions engulfed the controversial Geo-Chem contract deal.

Perhaps more disturbing is the abrupt about-turn by Industrialisation ministry on a deal it presided over.

Industrialisation PS John Lonyangapuo admitted Tuesday that the process of identifying the Indian firm was not above board.

"We don’t want the country to be held hostage by a dispute between oil importers and Kenya Bureau of Standards (Kebs). The process has to be stopped and the parties sort out the matter once and for all," Lonyangapuo told a local daily early this week.

Present at launch

Inspection and testing firm, Geo-Chem Middle East won a contract from Kebs, the Government agency that establishes and governs standards, to test petroleum imports.

Ironically, Lonyangapuo was in the company of Industrialisation Minister Henry Kosgey during the launch of Geo-Chem laboratories in Mombasa on August 27 last year.

Kosgey said the establishment of the facility was long overdue. He said petroleum products will undergo stringent chemical analysis to stop harmful and adulterated oil finding their way into the market.

Dealers are unhappy over a 0.6 per cent charge on every consignment of imported oil.

Questions abound as to whether the minister and his PS had prior knowledge to the controversial deal.