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New Developments in KNTC Edible Oil Fraud Investigation

254 by 254
November 4, 2024
in Business, Markets
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New Developments In Kntc Edible Oil Fraud Investigation
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Investigations into the alleged loss of over Sh6.5 billion in the edible oil fraud at the Kenya National Trading Corporation (KNTC) have taken a dramatic turn, revealing significant interference in the probe.

These revelations have prompted a parallel investigation by the Senate, as lawmakers have reported that powerful individuals are attempting to obstruct the inquiry. The Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and the Senate have all been looking into the fraud and related obstruction of justice.

Marsabit Senator Mohamed Chute, who initiated the Senate Trade and Industrialisation Committee’s investigation, has raised concerns about ongoing efforts to derail the inquiry. “I have reliable information about tampering with evidence and procedures in this investigation,” Chute stated, urging the Senate to examine these new developments.

Chute criticized KNTC management for retaining staff members implicated in the scandal, which resulted in a significant loss of taxpayer funds. “This retention raises serious concerns regarding the handling of those involved in the fraudulent loss,” he said.

In response, Speaker Amason Kingi directed the Senate Justice, Legal Affairs, and Human Rights Committee to investigate the alleged interference. The committee, chaired by Bomet Senator Hillary Sigei, will assess the status of the EACC and DCI investigations and scrutinize the KNTC board’s decisions on staff dismissals and retainments, particularly those linked to the scandal.

Chute highlighted the need to investigate cash withdrawals made through vouchers and checks at KNTC and requested the submission of names and IDs of the individuals involved. He also called for the suspension of specific staff members, including the general finance manager, senior accountant, and finance officer, to ensure an unbiased investigation.

“It is crucial that the committee ensures the individuals mentioned step aside to facilitate the investigation,” Chute asserted. He emphasized the need for transparency and fairness in the disciplinary processes related to the case.

Additionally, the committee will look into the timelines and mechanisms for two companies directed to refund KNTC: Multi-Commerce International Limited and Charma Holdings Limited, which are reportedly expected to return Sh2.28 billion and Sh487 million, respectively.

Last month, the Senate Trade Committee uncovered that KNTC lost Sh6.6 billion from a total of Sh9 billion allocated for the importation of edible oils intended to help Kenyans cope with rising costs. The probe revealed that 797,564 20-litre jerricans were allegedly diverted and sold to two companies—Environ Pro and EnBV Kenya—for re-export.

Documents presented to the committee indicated that KNTC sold the jerricans at Sh3,028 each, significantly below the local retail price of around Sh5,000. The corporation had planned to sell them for approximately Sh4,800 to recover the costs associated with providing affordable edible oils.

Legislators sought clarity on how much was actually recovered from the sale of the imported cooking oil. KNTC admitted that the loss amounted to Sh6.6 billion and acknowledged that the process was “messed up,” pledging to learn from this incident.

The corporation reported generating Sh25.97 billion from the sale of 1,687,083 jerricans of cooking oil, which is nearly half of the 2.2 million jerricans that were to be imported under the initiative.

Tags: Bomet Senator Hillary SigeiDirectorate of Criminal Investigations (DCI)Ethics and Anti-Corruption Commission (EACC)Kenya National Trading Corporation (KNTC)Senate Trade Committee
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