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Liban, Kiptoo and Sang resign after arrest in fuel supply scandal

Three senior government officials have stepped down following their implication in an ongoing investigation into the alleged importation of substandard fuel, as pressure mounted for accountability within the energy sector.

Petroleum Principal Secretary Mohamed Liban, Energy and Petroleum Regulatory Authority Director General Daniel Kiptoo Bargoria, and Kenya Pipeline Company Managing Director Joe Sang resigned on Saturday as investigations intensified.

In a statement issued the same day, Head of Public Service Felix Koskei said the resignations followed the officials’ arrest on Thursday over what he described as serious misrepresentation within the country’s petroleum supply chain.

He confirmed that the respective institutions had formally received and accepted the resignations.

At the same time, administrative action has been taken against other officials, including Petroleum Deputy Director Joseph Wafula and Kenya Pipeline Company Supply and Logistics Manager Joel Mburu, as part of internal accountability measures.

According to the statement, investigators believe senior officials may have manipulated data on fuel stocks, creating the impression of a looming shortage.

This, authorities say, could have been aimed at taking advantage of rising global fuel prices and public concern.

The alleged manipulation is said to have influenced the procurement of an emergency fuel shipment by the Ministry of Energy and Petroleum.

The shipment is reported to have been acquired outside the Government-to-Government framework, at a higher cost than agreed rates, and did not meet required quality standards.

The government warned that such actions could amount to economic crimes under existing laws, including the Anti-Corruption and Economic Crimes Act and the Penal Code, and assured that those responsible would face legal consequences.

Despite the developments, officials maintained that the G2G fuel supply framework introduced in 2023 has continued to ensure stable supply and pricing.

The country is still receiving fuel shipments from contracted suppliers, including Aramco Trading Fujairah, ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore.

Meanwhile, Kenya Pipeline Company has appointed General Manager Finance Pius Mwendwa as acting Managing Director to maintain operations as investigations continue.

Authorities say further administrative steps will be taken, including reviewing procurement processes and addressing any irregular shipments.

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