MPs raise alarm over NOCK's financial collapse in face of Sh3 billion Rubis loan
NOCK’s Chief Executive Officer Leparan Gideon Ole Morintat told the committee that the firm is in a difficult financial state and explained the deal with Rubis was designed to help NOCK manage its debts and begin recovery efforts.
A parliamentary committee has ordered a full audit into the operations of the National Oil Corporation of Kenya (NOCK) following sharp concerns over its financial collapse and a Sh3 billion loan agreement with oil marketer Rubis Energy.
The National Assembly Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, was scheduled to examine NOCK’s audited financial statements for the years 2018/19 to 2022/23.
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But the hearing was abruptly suspended after lawmakers demanded a comprehensive review by the Auditor General before the matter proceeds.
The committee directed that a special audit be conducted within two weeks, with a focus on NOCK’s financial position, its contracts, and particularly the recent debt deal with Rubis Energy.
“We are being informed that they have an existing contract. There is crucial information we need as Members of this Committee to understand what exactly is ailing NOCK and whether it can be salvaged,” said Embakasi East MP Babu Owino.
NOCK’s Chief Executive Officer, Leparan Gideon Ole Morintat, told the committee that the firm is in a difficult financial state and explained the deal with Rubis was designed to help NOCK manage its debts and begin recovery efforts.
But members insisted that the deal lacked clarity and raised fears of a hidden attempt to transfer control of the corporation.
Eldas MP Adan Keynan voiced serious concern about the nature of the loan, warning, “We know someone might be out there trying to grab NOCK, just like Telkom Kenya, which, up to today, we still don’t know who owns.”
“Borrowing Sh3 billion from a private entity like Rubis to resuscitate NOCK is criminal. Whoever is pushing this deal is a saboteur,” he added.
The committee questioned why the National Treasury had not intervened if the corporation truly required urgent support.
“Why can’t the National Treasury step in with the Sh3 billion? Are there hidden interests?” posed Pkosing, who also reminded members of the committee’s earlier move to stop the Public-Private Partnership between the Kenya Airports Authority and Adani Group.
The MPs directed that NOCK’s operations, especially any involving the Rubis contract, be halted immediately as the audit proceeds.
“Looking at this issue holistically, we want all NOCK operations halted until the Committee makes a decision,” said Keynan.
“NOCK was abducted and killed. All that remains is to plant flowers at its grave,” as lawmakers lamented what they termed as a complete collapse of the state-owned firm,” Babu Owino added.
The committee now wants the Auditor General to provide detailed findings on how NOCK arrived at the agreement with Rubis, the structure of the loan, and its overall impact on the future of the corporation.
“We, as Parliament, are a key arm of government. The Executive may make decisions, but it is our job to interrogate those decisions and ensure there is value for taxpayers’ money,” said Keynan.
The hearing is expected to resume on Thursday after the committee holds internal consultations.
Until then, all financial and operational activities at NOCK remain suspended, with the audit outcome set to guide the next course of action.
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