@DailyNation

Sh3 billion cooking gas for the poor hit by fraud

7 days ago, 15:31

By: Brian Ngugi

Fraudulent contractors supplied 67,251 faulty gas cylinders, scuttling a government plan to provide poor homes with cheaper cooking fuel, a report on the multi-billion shilling project has revealed.

More than a third of the liquefied petroleum gas (LPG) cylinders supplied to the National Oil Corporation of Kenya (Nock) were sub-standard, including having faulty valves that posed the danger of fire eruptions.

Under the Sh3 billion plan, dubbed the Mwananchi Gas Project, the households were to receive 6kg cooking gas cylinders and burners at a discounted price of Sh2,000.

The market price for the a 6kg gas cylinder with cooking accessories is about Sh5,000.

An internal report prepared by Nock, the State oil marketer, shows it rejected 67,251 cylinders supplied by four local firms out of a total of 353,000 that were supplied, citing poor quality.

The tender in the first phase of the gas plan was valued at over Sh700 million.

The cheaper cooking gas plan is aimed at entrenching use of the commodity among low-income households.

The subsidy plan is aimed at cutting reliance on kerosene and charcoal, which are not environment-friendly.

Under the plan, which has already been piloted in Machakos and Kajiado counties, the Ministry of Energy is expected to buy about one million new cylinders for distribution.

The Sh2 billion allocation for the year starting July this year increased the subsidy scheme to Sh3 billion after the Treasury offered the Petroleum ministry Sh1 billion in the current financial year.

The State oil marketer’s documents show local firm Allied East Africa Ltd supplied a total of 148,750 cylinders of which 47,534 were rejected for being defective.

A further 11,823 cylinders out of a total of 104,125 supplied by Surge Energy were rejected for being substandard, as were 7,894 out of 44,625 supplied by Accurate Power Systems.

All the 59,500 cylinders supplied by another firm, Metal Mate, were, however, approved.

The defective LPG cylinders have raised queries on whether the Ministry of Petroleum and Nock conducted due diligence when it contracted the suppliers.

Nock is yet to inspect 75,662 gas cylinders before making a decision on whether to release them into the market, according to the report.

The Business Daily has also learned that the State oil marketer, the implementing agency, plans to recruit a firm to undertake further inspections on 35,418 cylinders already distributed to poor homes under the programme to ascertain their quality.

But the Nock chief executive, Mary Jane Mwangi, yesterday dismissed safety fears around the cylinders piloted in Kajiado North Sub-County and Machakos County.

“That’s not the true position,” said Mrs Mwangi on the phone, seeking to distance the State oil marketer from the botched tender.

“Inspection and acceptance reports go to the owner of the tender, (which is) the ministry.”

Petroleum Principal Secretary Andrew Kamau did not respond to the Business Daily queries yesterday on the quality and safety fears surrounding the cylinders.

Sub-standard cylinders that leak easily pose risks of fires and explosions to users.

The Petroleum and Mining ministry, through Nock, was tasked by President Uhuru Kenyatta to roll out the “Mwananchi Gas Project” in mid-2016.

Nock later launched the “Project Mwananchi” campaign ...
Read More


Category: topnews news

Suggested

1 hour ago
@DailyNation - By: Eunice Murathe
TALES OF COURAGE: I’m living proof that organ donation works

A cornea transplant saved Abdulshakur's eyesight. ...

Category: topnews news
1 hours ago, 16:56
@CITIZENTV - By: Iaaf
Bekele to battle Cherono at Amsterdam Marathon

Bekele currently sits at third on the world all-time list for the marathon with his 2:03:03 clocking from the 2016 Berlin Marathon ...

Category: topnews news sports
1 hours ago, 16:36
@DailyNation - By: Sam Kiplagat
Suspects in shooting of ex-Garissa staff Mukhtar granted bail

Mukhtar was shot at White Star Restaurant in Kileleshwa, Nairobi. ...

Category: topnews news counties
36 minutes
@CapitalFMNews - By: Capital Reporter
GSU Recce Squad officer arrested over Monica’s murder

NAIROBI, Kenya, Oct 19 - A General Service Unit officer attached to the US Embassy has been arrested over the murder of Monica Kimani. The Recce Squad - Kenya breaking news | Kenya news today | Capita ...

Category: topnews
1 hours ago, 16:15
@CITIZENTV - By: Citizen Reporter
Recce Squad officer linked to Monica murder arrested

A Recce Squad officer who has been on the run for the past month has been arrested. ...

Category: topnews news
1 hours ago, 16:25
@AfricaNews - By: Africanews
Cameroon presidential results expected on October 22 – Info Minister | Africanews

ELECAM passed nine candidates including incumbent Paul Biya. The 85-year-old is widely expected to be announced winner of the polls. He will secure a seven-year mandate that will extend his time in po ...

Category: africa africa_elections news topnews

@DailyNation

Sh3 billion cooking gas for the poor hit by fraud

7 days ago, 15:31

By: Brian Ngugi

Fraudulent contractors supplied 67,251 faulty gas cylinders, scuttling a government plan to provide poor homes with cheaper cooking fuel, a report on the multi-billion shilling project has revealed.

More than a third of the liquefied petroleum gas (LPG) cylinders supplied to the National Oil Corporation of Kenya (Nock) were sub-standard, including having faulty valves that posed the danger of fire eruptions.

Under the Sh3 billion plan, dubbed the Mwananchi Gas Project, the households were to receive 6kg cooking gas cylinders and burners at a discounted price of Sh2,000.

The market price for the a 6kg gas cylinder with cooking accessories is about Sh5,000.

An internal report prepared by Nock, the State oil marketer, shows it rejected 67,251 cylinders supplied by four local firms out of a total of 353,000 that were supplied, citing poor quality.

The tender in the first phase of the gas plan was valued at over Sh700 million.

The cheaper cooking gas plan is aimed at entrenching use of the commodity among low-income households.

The subsidy plan is aimed at cutting reliance on kerosene and charcoal, which are not environment-friendly.

Under the plan, which has already been piloted in Machakos and Kajiado counties, the Ministry of Energy is expected to buy about one million new cylinders for distribution.

The Sh2 billion allocation for the year starting July this year increased the subsidy scheme to Sh3 billion after the Treasury offered the Petroleum ministry Sh1 billion in the current financial year.

The State oil marketer’s documents show local firm Allied East Africa Ltd supplied a total of 148,750 cylinders of which 47,534 were rejected for being defective.

A further 11,823 cylinders out of a total of 104,125 supplied by Surge Energy were rejected for being substandard, as were 7,894 out of 44,625 supplied by Accurate Power Systems.

All the 59,500 cylinders supplied by another firm, Metal Mate, were, however, approved.

The defective LPG cylinders have raised queries on whether the Ministry of Petroleum and Nock conducted due diligence when it contracted the suppliers.

Nock is yet to inspect 75,662 gas cylinders before making a decision on whether to release them into the market, according to the report.

The Business Daily has also learned that the State oil marketer, the implementing agency, plans to recruit a firm to undertake further inspections on 35,418 cylinders already distributed to poor homes under the programme to ascertain their quality.

But the Nock chief executive, Mary Jane Mwangi, yesterday dismissed safety fears around the cylinders piloted in Kajiado North Sub-County and Machakos County.

“That’s not the true position,” said Mrs Mwangi on the phone, seeking to distance the State oil marketer from the botched tender.

“Inspection and acceptance reports go to the owner of the tender, (which is) the ministry.”

Petroleum Principal Secretary Andrew Kamau did not respond to the Business Daily queries yesterday on the quality and safety fears surrounding the cylinders.

Sub-standard cylinders that leak easily pose risks of fires and explosions to users.

The Petroleum and Mining ministry, through Nock, was tasked by President Uhuru Kenyatta to roll out the “Mwananchi Gas Project” in mid-2016.

Nock later launched the “Project Mwananchi” campaign ...
Read More

Category: topnews news

Suggested

1 hour ago
@DailyNation - By: Eunice Murathe
TALES OF COURAGE: I’m living proof that organ donation works

A cornea transplant saved Abdulshakur's eyesight. ...

Category: topnews news
1 hours ago, 16:56
@CITIZENTV - By: Iaaf
Bekele to battle Cherono at Amsterdam Marathon

Bekele currently sits at third on the world all-time list for the marathon with his 2:03:03 clocking from the 2016 Berlin Marathon ...

Category: topnews news sports
1 hours ago, 16:36
@DailyNation - By: Sam Kiplagat
Suspects in shooting of ex-Garissa staff Mukhtar granted bail

Mukhtar was shot at White Star Restaurant in Kileleshwa, Nairobi. ...

Category: topnews news counties
36 minutes
@CapitalFMNews - By: Capital Reporter
GSU Recce Squad officer arrested over Monica’s murder

NAIROBI, Kenya, Oct 19 - A General Service Unit officer attached to the US Embassy has been arrested over the murder of Monica Kimani. The Recce Squad - Kenya breaking news | Kenya news today | Capita ...

Category: topnews
1 hours ago, 16:15
@CITIZENTV - By: Citizen Reporter
Recce Squad officer linked to Monica murder arrested

A Recce Squad officer who has been on the run for the past month has been arrested. ...

Category: topnews news
1 hours ago, 16:25
@AfricaNews - By: Africanews
Cameroon presidential results expected on October 22 – Info Minister | Africanews

ELECAM passed nine candidates including incumbent Paul Biya. The 85-year-old is widely expected to be announced winner of the polls. He will secure a seven-year mandate that will extend his time in po ...

Category: africa africa_elections news topnews
Our App