NOCK CEO Sumayya Hassan: Other Oil Marketing Companies complain over NOCK-KPA deal

I am a concerned citizen in respect to the intrigues currently at NOCK & its push to have Kenya Ports Authority (KPA) award it a Triennial Direct Procurement for Fuel Supplies - Tender No. KPA /135/2015 - 2016/PSM.

We all know that NOCK does not have the capacity to meet the supply of fuels to KPA and as well as Sustain its retail network wet with products.

First, as per Public Procurement & Disposal Act Cap 412 (Rev 2010), Sec 74 & Sec 75 stipulates when a public entity is to use Direct Procurement & further the procedures to be followed.

Last week on 9th, June, 2016, KPA invited NOCK officials for a site visit & deliberation meeting at KPA. The NOCK team was lead by the Commercial Manager Mr. Charles Maina, co-team members Loryne Chibole & another muslim lady.

According to a privy source at KPA, the Tender was due to close on 17th June, 2016, but NOCK requested for more time to study & fulfill the tender requirements (at least 10 days), i.e. 24th June, 2016.

What our privy source indicates is that the Acting KPA MD has refused to listen to the advice of his Head of Procurement Mr. Yobesh Oyaro and T.C. team on the challenges that NOCK has been having not only within its management but also with constrained capacity.
NOCK's heads are arming themselves with a letter initially issued by the Chief of Staff at the Office of the President authorizing that all Govt departments should source petroleum product from NOCK as a means of promoting Govt to Govt business.

This letter was latter queried by by respective Permanent Secretaries of different Ministries and a Deputy to The Chief of Staff at the Office of the President over-ruled NOCK's quest, citing that the push by NOCK would not warrant competitiveness in-terms of  business, & would unfairly lock out other players who the ministries were into contracts with.

NOCK has been faced by challenges in-terms of internal capacity, management wrangles, high staff turn-over, stock-outs in its retail network, & most of its networks sites have been blacklisted by ERC for product adulteration (see ERC web site), financial challenges - resulting to massive losses as witnessed in from the Auditor's General Report (confirmed to by the current MD in a past local daily). In addition, there is word that due to capacity issues, they are due to close the Export Business line of revenue.

My concern is why would KPA acting MD choose NOCK for direct sourcing for petroleum products & ignore her experience team of advisers who have have tried even to request the lobbying of PIEA Chairman for intervention, as KPA runs on a 24 hours basis, and it being a service industry, it's main input is Fuel?

Why would the GM - DSO at NOCK request for a separate contract for the re-fueling of the 5 Tug-boats/ 11 marine crafts, against the wishes of KPA?

If KPA were to shut-down for just 24 hours due to lack of petroleum products, what would be the repercussions to the Kenyan & East & Central African Economies?

Would this make KPA more of a preferred Import & Export Gateway to EAC block & Central Africa citing the current competition we are getting from our southern neighbor Magufuli?

What would be the ramifications on consumer prices for goods imported to the country as well as the forex for KRA?

Why can't the Acting KPA MD listen to his team and also look at the past (2009 - 2010) when NOCK won the OTS tender for supply of petroleum Products but failed to deliver (or wanted to hedge much higher than what it had quoted to which the Ministry & other OMCs protested) & which resulted in product dry-out in the whole of the country?

As a citizen of Kenya, I have my nerves that may be the Acting KPA MD refusal to listen to her team of well experienced advisers, could be as a result of the recently concluded KPA - MDs Interviews, to which according to the privy sources, she feels that she shall not qualify for the job as per her experience & hence might have forged an alliance with NOCK's GM - DSO for a softer landing as a dealer to be subcontracted by NOCK to run the business at KPA on behalf of NOCK!!!

My appeal to you Mr. Secretary General of Cofek, is through your high hear office, you can intervene on behalf of a mere citizen like me at PPOA and have the voices of the other OMCs heard for equal competitiveness of KPA.