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Sunday, December 21, 2008

Kenya Pipeline Company - Fishy dealings

I recently advocated the complete privatization of KPC since the management at KPC in collusion with the Ministry of Energy is definitely incompetent & probably corrupt.

Why would they allow a (almost) bankrupt firm (see story here - Triton) to import oil products under OTS?
Why do they allow a single firm to hold stocks/ullage in excess of their market share?
(The government through KPC allows for storage/ullage in proportion to the market share. The Oil Markerters - Shell, Kenol, Kobil, Total) have been complaining that some 'politically connected' players routinely exceed their storage capacity).

KPC's idiots blamed everyone else but themselves since KPC's managers were protecting their own. So they invited kibaki to 'commission' a facility that was non-operational & not expected to come online till early 2009.

The Oil Marketers have made multiple suggestions for changes in the Oil Tendering System (OTS) among other structural problems facing the industry BUT the incompetent (or maybe just plain corrupt) mandarins refuse to make the changes.

Another group of idiots reside at the Ministry of Finance & KRA... who refuse to expedite the refunds of taxes, duties and levies thus creating a strain on Oil Marketers.

Of course, the public at large are like sheep. They believe whatever alfie mutua says... or some incomptent (&/or corrupt) government bureaucrat.

It is so easy to blame BUSINESSES (they are not perfect) for the problems whereas dig a little deeper & its STUPID, CORRUPT, INCOMPETENT government functionaries who push retrograde policies OR are simply in it as rent-seekers!

8 comments:

Anonymous said...

Corruption is the order of the day in Kenya. What's all this bull crap about leasing so many hectares of land in Tana to Qatar?

MainaT said...

Isn't Triton the same company that recently was part of a joint tender to buy the licence for the 2nd national telephone licence?
Isn't the mhindi a partner of Total Man?

Maishinski said...

CT:

First and Foremost, let me wish you and all the Kenyan Blogging family a Wonderful christmas and a Happy 2008!

Now, my points:

1. It is good to highlight the issues. It is much better however to Propose a practical solution/alternative approach to each issue. So I challenge you to give us something solid to chew on.

2. Those who are against leasing land in Tana have yet to come up with SOLID, UNEMOTIONAL arguments as to why the land should not be leased. Cosider this:

a. The land has been idle for 45 years. It didnt just spring up from nowhere! Where were all these geniouses coming up with ideas of how to make money with that land?

b. 90% of the objection is from Western funded sources - who know there'd gonnna be a reduction in dependency.

c. the strategic benefits of such a move to Kenya and Kenyans are immense!

QATAR IS THE RICHEST AND FASTEST GROWING COUNTRY IN THE WORLD!

If we miss this chance, it will be yet another ridiculously stupid and self-destructive thing Kenyans have ever done (maybe even more stupid than PEV).

What we should push for is transparency in the deal and a clear duration/term, Exit clause, Termination clause and renewal clause.

coldtusker said...

MainaT: No idea who is behind Triton but corruption is the order of the day.

biwott owns/controls KenolKobil BUT he lets the Israelis manage it! And they have done an awesome job!

Maishinki: The Oil Marketers HAVE proposed solutions. I am not in the business of posting thesis or policy papers.

My suggestion/recommendation which you missed was COMPLETE PRIVATIZATION. No more pumbavus appointed by pumbavus!

Anonymous said...

@ Maishnski...keep pushing for transparency??? from Kibaki the f****d up president??? Transparency from an Election thief????

CT,
HAPPY HOLIDAYS MATE.

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