Flashback:Dalbit’s Embezzlement Of $165 million By Inflating Supply Figures Must Be Investigated

An article published by the media on Gunvor’s corrosive crude that has damaged and incapacitated Indeni refinery has been endorsed and proven accurate as the Daily Nation reports in its paper of 15th August that Gunvor executives have jetted in at the directives of the Government. Gunvor through Seth Thomas Pietras has admitted the supply of corrosive crude containing high levels of organic chlorides contrary to Government’s specifications. The payment of a minimum of $1 million per cargo by Gunvor to Dalbit for corrupt practices must now be fully investigated. Why was such a contract extended by way of a single source tender?
Dallbit is a small Kenyan company owned by Humphrey Kariuki Ndegwa who is involved in various businesses from real estate to wine distribution (Wines of the World). Corrupt propaganda suggests that Dalbit, (such a small company), is cheaper, more efficient than any International oil trader with international control and financing.
INVESTIGATION REVELS HOW THE FUEL SHORTAGE OCCURRED IN JANUARY 2015?
The Fuel shortage originates from November 2014 during Indeni Refinery maintenance. The refinery had to stop for 8 weeks in order to carry out maintenance of the distillation unit. Dalbit was supplying trucks from Dar-Es-Salaam, paid for by a letter of Credit issued on the 02 December 2014 worth 30m$. Indeni refinery was supposed to resume operations mid December 2014; however the maintenance had been delayed to the last week of December 2014. Dalbit, as the only main supplier was committed to fulfil the refinery shortfall and continue to supply. However, Dalbit officially stopped supplying on 1st January to pressurize the Ministry of Energy to issue a further Letter of Credit. The Ministry of Energy requested Trafigura to start supplying without any Letter of Credit in early January concerned by the imminent shortage of products both in Lusaka and Ndola. Trafigura started the supply of the 17th January 2015 within a couple of days’ notice. The Ministry of Energy effected payment by way of a Letter of Credit in settlement of Trafigura’s open accounts on the 04th February 2015. Dalbit only resumed its supply in February 2015 despite having been paid.
As the main supplier, Dalbit Petroleum should not have held back the supply to leverage a further Letter of Credit, holding the Country to ransom. Trafigura supplied without any guarantee of payment at the end of January 2015, in March 2015 and June 2015. Trafigura’s last minute supply balanced the finished Product requirement along with Indeni refinery production. The assumption, that: (quote) “Dalbit came to the Assistance of the Government to arrest the shortage of petroleum product”, is absolutely wrong as this finished product crisis would never have happened if Dalbit was performing its contract correctly?
To add insult to injury Dalbit’s contract has been extended on the basis of a ‘single source contract’ in June, 2015. How can anyone explain, with a clear conscience, that justification exists in this single source contract?

Total loss on Diesel since January 2014 : in excess of $104 million

Posted by Staffreporter on November 20, 2015. Filed under LATEST NEWS. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry