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Friday, January 09, 2009

Triton - KPC alledgely in cahoots with Triton

It seems that Kenya Commercial Bank (KCB) lent $24mn to Triton to buy petroleum supplies under the OTS. The products were held by Kenya Pipeline Company (KPC) as 'custodian' for KCB's interests.

Now... it seems some corruption (or incompetence) within KPC meant the stocks were released to Triton without KCB's approval... So Triton sold the stocks... pocketed the cash... and split!!!

So KCB went to court to freeze the assets of Triton... and if KPC does not pony up the cash... then KCB will probably sue KPC...

I still can't believe that some (misguided) Kenyans believe KPC should remain 100% in government hands!

Solution: Sell the Triton stations asap to NOCK (or another buyer) through TRANSPARENT means. Pay off as many debts as possible with the proceeds. Put out an international arrest warrant for the 'owners'. Sack, arrest & charge the chaps who authorised the 'release' of the products. Seize their assets since corruption was likely in this matter.

Start the process to privatize KPC.

2 comments:

lumiti said...

Seems strange that KCB gave the collateral management function to KPC who have enough trouble managing their own core business.

Payments for released stocks ought to have been made through KCB. One of their own must have (deliberately) overlooked this when structuring their agreement.

The "deal" sounds so embarrassingly simple that if I were the KCB CEO I'd beg for a media blackout.

coldtusker said...

See next blog post