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The Public Procurement Administrative Review Board (PPARB) is calling for greater openness and full disclosures on natural resources.
The move is part of a wider scheme by the government to have foreign firms handling local mining explorations make full disclosures of what they make and in turn the state to reveal what they collect from such companies.
PPAB’s Rosemary Gituma said last week during a training session organized by Accelerate to Excellence (A2E) – an affiliate of Australia Africa Energy and Minerals Institute (AAEMI which commenced training of government officers and the private sector in the mining, oil and gas industry.
“We are concerned about revenue leakage in the sector because Kenya does not have capacity to monitor what the foreign companies involved in mining and oil sector are doing. Such courses will help equip locals with capacity to effectively monitor these activities and plug revenue leakage,” said Gituma, adding that the presence of the A2E in Kenya would save companies and the government hundreds of millions that would have been used to send experts to countries like Australia to learn the crucial skills needed to sustain the emerging sectors.
Most government agencies tasked with monitoring and regulating the sector lack of expertise in these areas has led state agencies to rely on data produced by the foreign firms in the sector.
“When they produce data, we should also be able to produce ours independently for accountability purposes. The courses should not only concentrate on executives, but should also be devolved to cover operators who are our actual representatives on the ground,” she said.
Adam Bick, the Executive Trainer on Finance and Accounting in the resources industry at AAEMI said the training will involve accounting, exploration and production.
The courses offered will be a big breakthrough for Kenya’s nascent oil production industry, which is expected to join the league of oil exporting nations with plans to start transporting the crude oil in trucks from Turkana’s Lokichar oil basin to Kitale town, then to Mombasa in special railway wagons beginning next year.
In its latest update report, the Tullow says, “a sanction decision for oil production is expected by the end of 2016, and the first production will happen approximately three-and-a-half years post project sanction.”