In our second part series, The Informer now lays it bare behind the scenes dealings and deep seated secrets at the Energy and Petroleum Regulatory Authority (EPRA) board that oversaw a controlled and well managed process in the recruitment and consequent appointment of authority’s Director General (DG) Daniel Kiptoo, a process the Auditor General has flagged as irregular.
It has now emerged that Kiptoo sat in the board deliberating and making decision of a process he would take part in and neither the board nor Kiptoo made full disclosure on the matter thus raising issues of undisclosed possible conflict of interest.
Section 1.16 (b) of the Mwongozo code requires that a board member discloses all real or perceived conflicts of interest and manage such conflicts of interest within an agreed framework.
EPRA board members did not declare a conflict of interest in the matter “since the person” they were pushing for the appointment was a member of the board and was in the meeting that facilitated his own appointment.
In a damning Auditor General’s report tabled in the National Assembly, the auditors note that the decision by the EPRA board is against the Code of Governance for state corporations (Mwongozo).
The audit also shows the board appointed Kiptoo as the acting DG without approval from the then Cabinet Secretary.
A further review of the board minutes shows that the special board meeting of December 14, 2020 ended at 8pm and that the board’s letter seeking the approval for appointment of Kiptoo as the acting DG was done and sent to the Cabinet Secretary on the same day.
“The board then issued an appointment letter on December 14, 2020 to one of their own to act as DG even before the approval was granted,” the audit report reads.
The report further notes that the acting DG accepted the appointment on the same day.
This is notwithstanding that the letter from the Ministry Energy on the appointment was issued on December 15, 2020.
“This implies that the board appointed him before getting the Ministry’s approval,” states the audit report noting that the appointment was against the Energy Act of 2019.
Charles Keter was the then Energy Cabinet Secretary.
Also, Auditor-General Nancy Gathungu has slammed Epra board of directors over the irregular appointment of Kiptoo as the Director-General without the requisite qualifications in the latest audit report tabled in parliament.
Kiptoo was EPRA acting DG before he was appointed the substantive DG by then Cabinet Secretary in charge of Energy on June 28, 2021.
The audit report before the National Assembly notes that a review of the human resource records and minutes of the EPRA board of directors’ meetings revealed that Kiptoo was appointed DG despite not meeting the relevant minimum experience as required by the Energy Act.
Section 13 (1) of the Energy Act stipulates that the board shall, subject to the approval of the Cabinet Secretary, appoint a DG who shall be the CEO of the authority.
Section 13 (3) (c) (d) of the law goes on to state that a person shall be qualified for appointment as DG if the person has at least seven years’ management experience at a senior level and at least two years of experience in petroleum and energy sector.
“A review of the applicant’s documents confirmed that the person lacked the requisite management experience at senior level for appointment as DG. The regularity and suitability in the appointment of the DG was a breach in law,” the audit report says.
The minutes show that the DG position was declared vacant on March 31, 2021 and subsequently advertised on April 27, 2021 following the interdiction of Pavel Oimeke, the former office holder.
The committee formed a team consisting of management to oversee the process that attracted 23 applicants.
The board sought the approval of the CS on June 28, 2021 to appoint the DG.
The CS, the documents indicate, appointed the DG on June 28, 2021, whose terms of offer were accepted and signed by the nominee on the same day instead of the board of directors contrary to the Energy Act.
The manner in which Kiptoo was appointed the acting EPRA DG has also been flagged by the auditors.
The audit report indicates that the board held its 79th special board meeting on December 14, 2020 and confirmed the interdiction of Oimeke.
“Upon further deliberations, the members unanimously resolved that a recommendation be made to the Cabinet Secretary in charge of the Ministry of Energy for appointment of one of their own, who was representing the CS in the board as the acting DG,” the document reads.
The appointment took effect from December 9, 2020.
“The board then issued an appointment letter on December 14, 2020 to one of their own to act as DG even before the approval was granted,” the audit report reads.
The report further notes that the acting DG accepted the appointment on the same day.
This is notwithstanding that the letter from the Ministry Energy on the appointment was issued on December 15, 2020.
“This implies that the board appointed him before getting the Ministry’s approval,” states the audit report noting that the appointment was against the Energy Act of 2019.
