Treasury Cabinet Secretary Njuguna Ndung’u failed to appear before the Senate Wednesday to respond to questions regarding Government-to-Government fuel supply agreement.
Ndung’u was among three Cabinet secretaries who had been lined up for questioning on the floor of the House during the morning session.
His counterparts Kipchumba Murkomen (Transport) and Ababu Namwamba (Youth Affairs and Sports) honoured their summons.
"We have received communication from the CS Treasury that he is engaged and not able to attend today. The questions to the CS to be deferred to next week Wednesday," temporary Speaker and Garissa Senator Abdul Haji informed the House.
Haji did not, however, provide further details on the nature of Ndung'u's engagements.
The CS was expected to respond to questions by Kisii Senator Richard Onyonka who wants to know the terms of the G-to-G agreement, the countries or entities involved and the duration of the agreement.
The G-to-G deal which has continued to elicit heated debate is between the Kenyan government, Saudi Arabia and Kingdom of United Arab Emirates.
Onyonka also wants to know the cost per liter of oil under the agreement and how this cost is related to the prevailing market rates.
“Could the Cabinet Secretary state any discount or any other favourable terms the government has received as a result of the single-source purchase of oil, indicating the total savings the government has realised since the signing of the agreement,” the question on the order paper reads.
Last week, Opposition leader Raila Odinga claimed that the deal is a conduit by well-placed cartels operating in the government.
He argued that Kenya did not sign any contract with Saudi Arabia or the UAE, but rather, with private companies.
"Why Ruto chose to characterise the deal as a G-to-G is the first red flag that points to mischief in this deal,” he said.
Kenya entered the deal on March 10, 2023 with Aramco Trading Fujairah FZE (ARAMCO), Abu Dhabi National Oil Company (ADNOC) Global Trading Ltd and Emirates National Company (Singapore) Private Ltd (ENOC) under a deferred mode of payment spread over 180 days.
The deal was signed on behalf of government by the Ministry of Energy and Petroleum to save the country from shutdown due to nationwide petroleum shortage.
The companies nominated Gulf Energy Limited, Galana Energies Limited and Oryx Energies Kenya Limited as their local oil marketing companies in line with the Master Framework Agreement.
But Raila said if it were indeed a government-to-government deal, there would be no need to have private entities sign the MoU.
"I want the government to show the Memorandum of Understanding signed between the republic of Kenya and the government of Kingdom of Saudi Arabia and the government of United Arab Emirates," he said on November 17.
Ngung’u was further required to give the reasons for any debt or financial obligations that may have accumulated from the time the government started purchasing oil through the agreement as well as the nature of debts and projected timelines for their settlement.
His scheduled grilling would have coincided with that of businesswoman Ann Njoroge who is at the center of the Sh17 billion oil shipped into the country recently.
Njoroge was also a no-show. She was to appear before the National Assembly’s Committee on Energy chaired by Mwala MP Vincent Musyoka.
Njoroge was expected to explain about the ownership details of the consignment, country of origin and intended destination of the cargo.
According to Musyoka, the move to open a probe into the matter is mainly due to the fact that it involves a huge volume of petroleum.
"Attention of the committee has been drawn to the ongoing discourse on the dispute over the ownership of an oil consignment allegedly imported by your company…the purpose of this letter is to invite you to the meeting that will take place at the mini-chamber on November 22, 2023,” the letter reads.
Energy Cabinet Secretary Davis Chirchir has been invited to appear before the same committee on Thursday.
Chirchir will shed light on the consignment and the Government to Government fuel deal. MPs have also invited directors of Galana Energies.
President William Ruto has defended the G-to-G oil deal saying it will not only ensure a reliable supply of petroleum in the country but also enable local oil companies to buy petroleum in local currency.
Ruto said the deal was above board and challenged opposition leaders to prove any backhand dealings in the transaction.
“On the issue of fuel, it is important that I explain to Kenyans, let us desist from petty politics, propaganda. They [opposition] are telling us that we must prove that this transaction between Kenya and international oil companies is above board,” he said.
“I want to tell them to avoid lies, rumours, speculations and propaganda, say the truth,” he added.