NAIROBI, Kenya Aug 6 -Businessman Yagnesh Devani, linked to the Sh7.6 billion Triton Oil scandal, has been arrested.
Detectives from the Ethics and Anti-Corruption Commission (EACC) apprehended Devani and took him to the Milimani Law Courts.
“The Ethics and Anti-Corruption Commission (EACC) has, this morning, arrested the principal suspect in the Kes.7.6 billion Triton Oil scandal, Mr. Yagnesh Devani,” EACC Spokesman Eric Ngumbi said in a statement to newsrooms.
The Triton scandal, dating back to 2008, was allegedly orchestrated by Devani’s company, Triton Petroleum Limited. The company had won a lucrative tender to supply oil under a system designed to assist local oil companies.
An audit revealed that between November 2007 and November 2008, 126.4 million litres of oil were irregularly and illegally released to Triton Petroleum Limited. Triton was not entitled to the stocks, nor did financiers authorize the release as required under contractual arrangements.
The Kenya Pipeline Company (KPC) breached an agreement with financiers stipulating that financed stocks would only be released on the financiers’ authority. Additionally, KPC issued false statements regarding those stocks, exposing itself to lawsuits by the financiers and defrauding oil marketers.
The scandal’s financial impact was calculated using a conservative price of Ksh60 per litre, at a time when the average price was Ksh100 per litre. During the height of the scandal, the Kenya Revenue Authority (KRA) claimed Ksh4 billion in unpaid taxes and penalties from Triton. Additionally, KRA sought Ksh2 billion in unpaid corporation taxes for the period ending December 2007 and a penalty for storage at the Mombasa-based Kipevu Oil Storage Facility (KOSF).
Triton was alleged to have enjoyed significant political connections, potentially exploiting them to receive preferential treatment at KPC. During President Daniel arap Moi’s regime, Triton secured several lucrative contracts to supply petroleum products to the Kenya Power and Lighting Company.