Today, we will unearth behind-the-scenes dealings and deep secrets at the Energy and Petroleum Regulatory Authority (EPRA) board which oversaw a controlled and well-managed process in the recruitment and consequent appointment of the authority’s Director General (DG) Daniel Kiptoo.
Mr Kiptoo reportedly sat on the board deliberating and making decisions about a process he would take part in and neither he nor board members made a full disclosure on the matter, thus raising issues of undisclosed potential conflict of interest.
The Auditor General flagged the process as irregular.
Section 1.16 (b) of the Code of Governance for state corporations requires that a board member discloses all real or perceived conflicts of interest and manages such conflicts of interest within an agreed framework.
EPRA board members did not declare a conflict of interest in the matter, since they were pushing for the appointment of Mr Kiptoo – a fellow board member who was present in the meeting that facilitated his own appointment.
The report tabled to parliament by Auditor General Nancy Gathungu notes that the decision by the EPRA board is against the Code of Governance.
The audit also shows the board appointed Kiptoo as the acting DG without approval from the then Cabinet Secretary Charles Keter.
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 the 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 report further notes that the acting DG accepted the appointment on the same day.
This is notwithstanding that the letter from the Energy Ministry on the appointment was issued on December 15, 2020.
This was against the Energy Act of 2019.
The report has also slammed EPRA board of directors for appointing Mr Kiptoo without the requisite qualifications.
Prior to his confirmation in June 2021, he was the acting Director General.
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 (3) (c) (d) of the Energy Act stipulates 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 the petroleum and energy sector.
A review of the Mr Kiptoo’s documents confirmed that he 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.
