Why 8 local oil dealers risk shut down

Image result for images of Lion Petroleum Corporation

As authorities continue to hunt Humphrey of Africa Spirits limited the tycoon who was reaping millions by defrauding the country, eight other big business entities have been black listed by government soon after.

Energy Principal Secretary, Joseph Njoroge, on Tuesday, revealed that eight local oil dealers risked being shut down for non-payment of the statutory fees.

Appearing before the National Assembly Public Accounts Committee (PAC), Njoroge revealed that the companies had failed to remit their statutory annual training contributions as well as service fees amounting to Ksh754.1 million.

“This money should have been collected and sanctions issued against the eight companies for non-payment of the statutory fees,” he claimed.

Image result for images ofEnergy Principal Secretary, Joseph Njoroge
Joseph Njoroge

He mentioned three organizations, Lion Petroleum Corporation, A-Z Limited, and Rift Kenya Limited as among those yet to comply with the legal requirement.

However, he stated that the ministry was consulting the companies on why they failed to comply.

According to reports, there was concern that the ministry deliberately failed to ensure the government got the revenue for projects.

The committee members chaired by Ugunja MP Opiyo Wandayi wondered why there had been delays in the recovery of the money yet the matter was raised by Auditor-General Edward Ouko in his report for the 2015/16 financial year.

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