There is a memo.... Quote
Managing director Sumayya Athumani was unavailable for comment yesterday.
The memo argues that the purchase "will ensure that the Corporation has sufficient footprint to influence supply and prices."
"The petroleum supply crisis experienced on different occasions is testament to how the big oil marketers who have the biggest share of retail distributions assets can disrupt petroleum supply and cripple the country," states the memo.
In the memo, NOCK's finance manager Kamau Mugenda defends single sourcing Standard and Mutual, a local financial advisory firm based in Nairobi.
"Only a limited number of advisory companies can handle this size of transaction," states Kamau. KPMG was ruled out because it is NOCK's present external auditor and was "the transaction advisers for one of the companies that shown interest in acquiring the business of the said oil company".
"PWC has been a long term auditor of the said oil marketing company while Deloitte was adversely mentioned during the infamous Triton saga. Ernst and Young has not had a strong record of handling large transaction advisory assignments in Kenya," states the memo.
CFC Stanbic and CBA were dismissed because "being primarily banks... they may want to skew the transaction in favour of finance coming from them."
"It is National Oil's considered opinion that Standard and Mutual would be a more objective transaction adviser for this project," the memo concludes.
"The services are required urgently as National Oil has received a narrow engagement window with the vendors to discuss and conclude this transaction," the Finance Manager states.
End quote.