Members of Parliament have ordered a full audit into the financial dealings and operations of the National Oil Corporation of Kenya (NOCK), expressing alarm over a Sh3 billion loan deal with Rubis Energy and describing the corporation as on the verge of collapse.

The Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, suspended a session that had been set to review NOCK’s audited accounts from 2018/19 to 2022/23.

Lawmakers instead demanded an immediate special audit to establish the true status of the parastatal, with instructions for the Auditor General to report back within two weeks.

The move followed tense exchanges as MPs questioned NOCK’s leadership over its financial management and the justification behind the Rubis loan agreement.

CEO Leparan Gideon Ole Morintat admitted that NOCK was struggling financially and said the loan was intended to help the firm reduce its debt burden and attempt a recovery.

But the explanation did little to ease lawmakers’ concerns.

“We are being informed that they have an existing contract. There is crucial information we need as Members of this Committee to understand what exactly is ailing NOCK and whether it can be salvaged,” said Embakasi East MP Babu Owino.

Lawmakers demanded full access to details of the agreement, including repayment terms and the role Rubis may play beyond funding. They warned that the loan could be used to pave the way for a quiet takeover of the state firm.

Eldas MP Adan Keynan stated, “We know someone might be out there trying to grab NOCK, just like Telkom Kenya which, up to today, we still don’t know who owns.”

He added, “Borrowing Sh3 billion from a private entity like Rubis to resuscitate NOCK is criminal. Whoever is pushing this deal is a saboteur.”

Committee Chair Pkosing said the silence of the National Treasury on the issue raised more questions, especially since the government had not offered any bailout option.

“Why can’t the National Treasury step in with the KSh 3 billion? Are there hidden interests?” he asked.

He warned that if the audit revealed irregularities, the committee would act in the same way it did when it stopped the proposed Public-Private Partnership between the Kenya Airports Authority and Adani Group.

MP Babu Owino, while criticising the state of NOCK, remarked, “NOCK was abducted and killed. All that remains is to plant flowers at its grave.”

In the meantime, the committee has instructed that all NOCK operations, especially those related to the Rubis deal, be suspended.

“Looking at this issue holistically, we want all NOCK operations halted until the Committee makes a decision,” said Keynan.

The committee reiterated that the audit must cover the corporation’s contracts, financial obligations, and potential risks to public funds.

“We, as Parliament, are a key arm of government. The Executive may make decisions, but it is our job to interrogate those decisions and ensure there is value for taxpayers’ money,” Keynan added.

The committee is expected to reconvene on Thursday, but any progress will depend on internal deliberations and the findings of the special audit.