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Corporate Fraud

How LPG Cartel Jaffer Mohammed stole cheap gas by Polluting NOCK

LPG Cartel Mohammed Jaffer has managed to cock-block all githeri media houses from mentioning his name which is at the center of the death of Mwananchi Gas.

Well, here we won’t beat around the bush, Jaffer Mohammed oversaw the death of NOCK so that he can steal Mwananchi gas cylinders-and he repainted them with those pink crap flooded on the markets.

Jaffer Mohammed through his proxies hijacked the Mwanachi Gas project that was initially to be implemented by the defunct Ministry of Energy and Petroleum beginning 2016.

The LPG cartel cock-blocked the defunct Ministry of Energy and Petroleum and diverted the Mwanachi Gas project to the National Oil Corporation of Kenya (Nock) which to date has not achieved its objective.

According to the Auditor General’s reports, the unauthorized handover of the Mwananchi Gas project to the National Oil Corporation of Kenya (Nock) was overseen by deeply connected figures and LPG heads that have managed to derail the process to supply the remaining products to thousands of Kenyans.

Auditor General Nancy Gathungu, in her audit report for Nock last year, scrutinized the spending of millions of public funds in the project, yet value for money had not been established.

“Records made available by the corporation indicated that a total of 144,092 6kg gas cylinders, 357,360 cylinder grills and 357,336 gas burners valued at Sh539,741,103 were received from the State Department for Petroleum. Of these quantities, the corporation, jointly with the State Department for Petroleum inspected and certified the use of 45,797 cylinders, 40,484 gas burners and 114,680 grills with an aggregate value of Sh56,419,124.

Jaffer Mohammed is a terrible man and Kenyans need to avaid his theatrics before he plunges this country into economic chaos.  Jaffer made sure that NOCK was making losses and he succeeded in that. In the year to June 2020, Nock incurred a Sh142 million loss (40 percent) compared with Sh352 million it lost in 2018/19. The Sh494.5 million loss in 2019/20 pushed Nock’s losses to Sh3.05 billion.

“The corporation is, therefore, technically insolvent and its continued existence as a going concern is dependent upon the financial support of the government, bankers and its creditors unless management puts in place measures to improve the performance of the corporation and to reduce reliance on financial support from the shareholders,” the report says.

Between July 2017 and December 2018, Nock recorded losses of 4,097,221 litres of diesel and 341,063 litres of super petrol, valued at Sh365.9 million. In June 2019, another loss of 32,000 litres of diesel valued at Sh3.62 million was reported.

Jaffer Mohammed used this chaos he created at NOCK and stole 40 percent of the remaining Mwananchi gas cylinders.

“The remainder of the items had not been included in the agency’s financial statements and the management has attributed the omission to lack of formal authority from the State Department for Petroleum to transfer ownership of the items to the corporation,” Ms Gathungu stated in her 2018/19 Nock audit report.

But now, responding to last year’s audit queries, the Nock management blames the state department for failing to communicate how Nock was supposed to handle the products after the 2018 handing over of the project, for the delays in distribution.

“The corporation received Mwananchi gas cylinders and accessories in FY2017/18. Since there was no clear communication from the Ministry of Energy and Petroleum on how the corporation was to treat the Mwananchi gas cylinders and accessories, the cylinders and accessories were accounted for in the books as an asset (inventory) with a corresponding liability,” the management says.

Nock says it has unsuccessfully tried writing to the state department seeking ownership of the project.

Management wrote a letter to the ministry, making recommendations to address the ownership and management of cylinders and accessories, and a second letter addressing the price buildup and subsidy applied on the cylinders and accessories. This was intended to ensure that the ministry transfers ownership of the cylinders to National Oil and that the ministry also gives concurrence on the pricing of the cylinder and accessories. Approval was given by the ministry to apply a subsidy of 65 percent on the landed cost of the cylinders and accessories in the buildup of the prices to the end-users with overall concurrence on the proposed price of Sh2,150 for a complete cylinder set. (Letter reference MOPM 68B/3/2/Vol IV dated October 11, 2018)

Jaffer

One of the stores where LPG cartel Jaffer Mohamed repainted the Mwananchi gas cylinders to his own Pro gas

While DCI is busy arresting petty thieves, shooting slum thugs, and deporting political enemies of the ruling chubby politicians, Jaffer Mohammed is cashing in from the confused government in place.

DCI has failed to investigate into what led to the collapse of the Mwananchi cheap Gas project yet we have revealed a well-calculated plan by Pro Gas owner Mohammed Jaffer to kill Gas Yetu.

In October 2018, at the height of the Gas Yetu scandal, DCI George Kinoti said he will begin investigations into the loss of billions.

“We will initiate a probe. We cannot allow a program that is funded by taxpayers to put Kenyan citizens at risk,” said Mr Kinoti.

Over one year later though, no investigations have been done and no one has been taken to court over the scam raising questions about how many agencies are on the take from Mohammed Jaffer.

A government’s Gas yetu project that was put in place in October of 2016 to make gas affordable to the common Mwananchi appears was killed and stolen by Jaffer in just 2 years after its launch.

Mwananchi Gas project was to sell under the Gas Yetu brand and was meant to safeguard the poor from respiratory diseases caused by the use of firewood for cooking. It was also meant to contain the rampant destruction of forests.

In 2017 Gas Yetu was allocated Ksh2.2 billion for the period 2017-2019. A further Ksh700 million was allocated through a supplementary budget raising the total cost of the project to Ksh2.9 billion. The project would have seen millions of households receive subsidized 6kg cooking gas cylinders at a cost of Ksh2,000.

This necessitated the Consumers Federation of Kenya (COFEK) to sue Government in October 2018. COFEK told the court the Government’s ambitious program to buy and supply 5 million subsidized gas cylinders to low- and middle-income households by end of 2019 was in jeopardy as 60% of the cylinders delivered were faulty.

However, the project was shelved due to corruption and bribery in the energy sector resulting in the government ceding the bulk importation of LPG to Africa Gas and Oil Ltd and in the process denying the country the benefits of cheap cooking gas.

This, however, seemed to be part of the grand plan to kill the project as then PS Andrew Kamau canceled the tender purchase order of 357,000 cylinders despite money having been paid out to East Africa Allied and Mohammed Jaffer.

Jaffer

This image shows you how Mombasa tycoon Mohammed Jaffer killed Mwananchi Gas, a government-subsidized project.

Mohammed Jaffer is Mombasa based tycoon who’s using intimidation, police and various government agencies involved in the management of gas and cylinders supplies across the country as his tools to harass competitors and others

With its bright pink colored cylinders, Jaffer’s Pro Gas was starting to penetrate into the market offering gas cylinders at cheaper rates than competitors. Pro Gas with the help of Energy CS Charles Keter, PS Njoroge and other corrupt government officials at the Energy and Petroleum Regulatory Authority (EPRA) and Kenya Revenue Authority (KRA) continue to engage in illegal and unfair trade practices to gain an edge over competitors.

Through the use of intimidation tactics and sabotage, Pro Gas has been hiring thieves in hoods to steal cylinders from competitors resulting in millions of shillings in losses.

This is also the case at KRA with senior officials receiving millions of shillings monthly to turn a blind eye to Jaffer’s indiscretions. The tycoon has also pocketed a significant number of MPs ensuring that any parliamentary committee investigations go his way.

To date, there have been tens if not hundreds of investigations on the unfair monopoly by his companies including Grain Bulk Handling Limited (GBHL) but no action has been taken.

Through bribery, Jaffer has now completely taken over the imports, distribution and retail business in the LPG sector undercutting other companies and driving them out of business altogether.

Suits filed in Court against Pro Gas, Energy Ministry and EPRA are often thrown out as he bribes witnesses and threatens anyone who comes in his way.

In the latest update in his expansion, Proto Energy which is associated with Jaffer snapped up a rival cooking gas company for an undisclosed sum in the latest dealers’ race for a larger market share of the liquefied petroleum gas (LPG) sector.

Proto Energy, is the maker of Pro Gas and has now received regulatory approval to buy out Solutions East Africa, whose LPG products trade as SeaGas.

The buyout is expected to see the Mombasa business mogul firm its grip in the lucrative cooking gas market.

With Jaffer now controlling over 70 pc of the gas market in Kenya, the monopolistic grip is tight, the dangers unseen. This a possible matter of national security.

To date, Africa Gas, which is partly controlled by cartel Jaffer who is also the owner of Grain Bulk Handlers, imports 90 percent of the LPG consumed in Kenya and also controls a significant transit market to neighboring countries.

The remaining 10 percent is brought to the country by smaller shipments that are discharged into oil marketing companies terminals located at both the Shimanzi Oil Terminal and at Mbaraki Jetty.

“Africa Gas Ltd has a monopolistic grip on the LPG market because it owns bulk import and storage facilities. This has denied Kenyans the benefits of cheap cooking gas,” said an industry player on condition of anonymity.

Jaffer

Prime minister Raila Odinga with Grain Bulk Handlers Chairman Mohamed Jaffer during the Celebrations to mark the 10th Anniversary in Mombasa yesterday. The Prime minister urged the indigenous business fraternity in Kenya to have confidence and faith in our economy – 

Lest I forget, Mombasa businessman Mohammed Jaffer gave Raila Odinga a 24-seater helicopter as a gift and in return, baba turns a deaf ear and a blind eye to Jaffer’s LPG dark world.

These crooks have a tendency of bankrolling your favourite politicians so as to safeguard their unquenchable greed.

Kenyans need to wake up from the chemical, physical and psychological imprisonment subjected to them by selfish leaders who become the target of selfish businessmen like LPG cartel Jaffer who’ll finance their campaigns to guarantee their business survival.

Read more about Cartel Jaffer’s State Capture

HERE

HERE

HERE

HERE &

HERE


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