In a bombshell revelation, the Rt. Hon. Raila Odinga, former Prime Minister of Kenya, has exposed what he calls a “grand scam” surrounding the controversial oil deal initiated by Deputy President William Ruto’s government. In a statement released today, November 16, 2023, Odinga highlighted several alarming facts, branding the deal as corrupt and detrimental to the nation.
Falsehoods upon Falsehoods
Odinga pointed out five undeniable facts that contradict Ruto’s narrative:
- Mischaracterization of the Deal: Contrary to Ruto’s claim of a Government-to-Government (G-to-G) deal, Odinga revealed that only the Ministry of Energy and Petroleum signed agreements with state-owned petroleum companies in the Middle East.
- Unfulfilled Promises: Despite Ruto’s promises of reduced oil prices and improved exchange rates, the cost of oil has not decreased, the Kenyan shilling has fallen against the dollar, and the scarcity of the dollar persists.
- Secrecy Surrounding the Deal: Odinga highlighted the lack of transparency, with only two documents made public so far, raising concerns about the true nature of the agreement.
Shady Business Practices
Odinga further exposed the questionable practices of the companies involved in the deal:
- Inflated Prices: Oryx Energies, Gulf Energy, and Galana Oil Kenya Ltd, hand-picked distributors, sell oil to Kenyans at nearly twice the price from bulk suppliers.
- Manipulation of Prices: Companies manipulate delivery date ranges to maximize prices, leading to inflated costs passed on to consumers.
- Lack of Accountability: Odinga challenged Ruto to publish the Supplier Purchase Agreement between Middle East oil firms and their distributors in Kenya.
Economic Consequences
The former Prime Minister outlined severe economic consequences resulting from the deal:
- Loss of Business: Landlocked countries are abandoning Kenya’s pipeline due to high costs, with Uganda shifting to the Central Corridor, impacting Kenya Pipeline Company’s revenue.
- Job Losses and Economic Decline: Odinga predicted job losses, loss of foreign exchange, and revenue decline for the country, urging a return to the Open Tender System.
Demands and Calls for Action
Odinga concluded his statement with a set of demands:
- Immediate Contract Cancellation: Ruto must cancel the contract and return to the Open Tender System for guaranteed supply and competitive pricing.
- Ethics and Anti-Corruption Commission Investigation: Odinga urged a thorough investigation into the origins and beneficiaries of the deal.
- Accountability: Those responsible for the deal should be surcharged and sacked.
- Tax Restoration: The government must restore taxes to 8 percent, down from the 16 percent imposed by the Finance Act.
- Transparency: Release the MoU between Kenya and Saudi Arabia/UAE, and make public the agreements and purchase details with oil companies.
- Investigations: EACC, DCI, and KRA must investigate tax compliance and pricing models of the involved oil companies.
- Public Briefing: A comprehensive brief on Uganda’s shift to the Tanzanian Central Corridor and its implications for the Kenya Pipeline Company is demanded.
The Smartie News team will continue to follow this developing story and provide updates as more information unfolds.