Ministry of Energy official supports Kebs in tender row

By Athman Amran

The Ministry of Energy has thrown its weight behind Kenya Bureau of Standard (Kebs) in a dispute over a petroleum inspection tender it awarded a Mumbai-based verification and testing firm.

Kebs preferred Geo Chem Middle East to Intertek Testing Services, SGS, and Q&Q Control Services despite protests from the Public Procurement Oversight Authority (Ppoa) and some oil importers. Ppoa had stopped the award in April after SGS petitioned the choice of Geo Chem in March.

In a letter dated August 4, Energy PS Patrick Nyoike said Kebs "acted within its legal mandate in contracting a company to carry out testing of petroleum products for inspection. Nyoike said inspection of petroleum products by Kebs is a legal requirement that cannot be substituted by any other being carried out by private companies "regardless of whether the companies are accredited or not".

The PS was reacting to a protest letter on Kebs’ choice of Geo Chem from Oil Libya Kenya Managing Director Kamel Jarnaz who wanted the move shelved "pending discussions with stakeholders".

"I am unable to accede to your request to shelve the process put in motion by Kebs," the PS wrote regarding the tender award, which Geo Chem won on Wednesday last week.

And in an indication that private verification and testing firms may lose their accreditation in preference for Kebs, Nyoike said the inspection of private companies "lacks the force of law" and that Kebs is not obliged to recognise the test results and findings of private companies.

"You may wish to recall instances when the Ministry of Energy had to seek intervention of the Kebs to have products which had been rejected by KPC and KPRL on the allegations that they were off-specifications released on the market. Such interventions which included your LPG cargo would not have been possible without a legally empowered national standards institution," Nyoike told Oil Libya.