National Oil Corporation is a state Corporation mandated to market the oil petroleum for the government. The Corporation runs several models of marketing one of them is consumer based. The Corporation has several parastatals as its clients like Kengen, Kenya Railways, Kenya Ports Authority and even Tullow as one of their consumer based customers. In these sites, the Corporation adopts the best strategy of managing these sites itself by having staff run the sites. These sites run in such a way that the Corporation has storage facilities within the parastatals establishments and delivers fuel to the site that the companies consume then they are billed after they are used for payment. This is the model that seem to work since it gives the Corporation direct control and enables the Corporation to control losses of product at these sites.
However, despite this being the best model, the current management decided to go into another model where they handed over the site based in KPA Mombasa to another company, Great White Investments Limited, to run the sites. This model sees the Corporation not only reduce its margin but also at the risk of losses at the site since they are managed by a different company. Documents at our disposal indicates that there has been losses running into millions of tax payers money at this site and the current CEO, MaryJane Mwangi has turned a blind eye into this. Reports in our possession indicates that an internal audit report done in 2017 and submitted to the arrogant CEO indicates that both the finance and internal audit flagged the losses by Great White Investments Limited at this site and even recommended that the Corporation reverse to its best model but this report was swept under the carpet by the CEO and was never presented to the board due to some interest that the CEO has in the management of this site. In any Case, a search in the ERC registers shows that the company is not registered as a Petroleum transporter and thus they do not qualify to handle the said contract. The tendering process was also ignored in awarding the tender to the company as there was not advertisement of the said tender.
It did not take long before this company being protected by MaryJane Mwangi stole a bigger loot running into millions of shillings again in 2018. Our sources tell us that the Corporation has lost more than Ksh. 300 million in theft of product by this same company Great White investments Limited and yet still operating normally due to the protection they get from the CEO. This has led to non-completion of the audit in the Corporation that was to end in 30th September 2018. As per the Internal Audit report dated October 2018, there is a reported Loss of 2,189,569 Litres of AGO(Diesel) and 125,892 Litres of PMS(Petrol), which the company opts to show as products in transit, yet there is nothing in transit. This theft has been perpetrated by unscrupulous employees of Great White Investments Limited and National Oil internal staff in Mombasa at the watch of the CEO, where they prepare delivery notes (Orders) in the Oracle system and immediately cancel them without notifying the teams involved. These cancelled orders are then used to collect fuel from the National Oil terminals and then the fuel is sold to 3rd parties. The total loss based on lost stocks is thus a value of Kshs. 330M.
For the services rendered to National Oil, Great White Investments Limited have been paid over Kshs. 80M for site management, transport of fuel and hire of Bowsers. A massive amount for a parastatal deep in losses. The parastatal has current net Losses of over 100M. Indeed, the Internal Audit report of 2017 recommends to the CEO change of tact and managing the KPA contract like all the other contracts are managed without sub-contracting. Over 400M has been lost and more will be lost if the situation is not arrested. The Corporation quietly somehow has engaged the services forensic Auditors to look into the said theft however, our sources tell us that MaryJane Mwangi has diverted this process to investigate current and former employees who she dislikes and who have no direct link with the theft in an aim to divert this to blame employee instead of invoking the contract with Great White Investments and have them pay for the losses then cancel the contract. This is a way she is used to operating to divert the attention from the Corporations board from realizing her incompetence and inability to manage and the Corporations and yet this has seen the Board to buy into this as they are tricked with international trips despite the fact that the Corporation has been making huge losses under her management.
In the Auditor general report for the period 30th June 2017, which is in our possession, the issue of non-reconciled stocks is raised by the Auditor General as it has negative effects on profitability of the organization. Infact, the use of book values of stocks without reconciling with actual inventory values is a disguise to hide the massive stock losses.
We obtained a copy of the contract that the CEO signed with this company Great white investments Limited and it indicates that this company will be responsible for all losses at the site and take responsibility of them (Clause 6.6) However, MaryJane Mwangi is keen on blaming these staff who are helpless and are constantly threatened with sacking for their silence. Also, an audit report done into current losses was designed so that blame goes to employees in the Mombasa office so that they can take the fall and she can have her way. Several documents in our possession are documents forged by this company and used to steal product from the depots where the Corporation store product in Mombasa. All these have been kept a secret so that MaryJane Mwangi can get away with another theft at the Corporation and instead blame it on junior staff who she plans to take to the board and have them fired. This is a waste of tax payers’ money. Given her poor management skills, the Corporation has constantly made losses yet she spends money flying board members and some close staff used to harass employees outside the country. Just like the lost product at Kenya Pipeline, MaryJane Mwangi should be sacked from the helm of this Corporation so as to see it back to making money. She should leave the Corporation and the Board at that company need to open their eyes and see the level of incompetency on this lady.
All documents can be produced on demand. Here is screenshots of the reports