Investigations into the alleged loss of more than Sh6.5 billion in the edible oil fraud at the Kenya National Trading Corporation have taken a new twist with revelations of massive interference with the probe.
In the revelations that have since triggered a parallel probe by the Senate, lawmakers heard that top figures determined to cover up the racket are meddling in the probe.
The Ethics and Anti-Corruption Commission, the DCI and Senate have been investigating the con and obstruction of justice.
However, Marsabit Senator Mohamed Chute, who initiated the ongoing probe by the Senate Trade and Industrialisation Committee, has blown the whistle on current attempts to scuttle the investigations.
“I am reliably informed of the ongoing tampering with evidence and process in this investigation,” Chute said as he petitioned the Senate to investigate the new developments.
Chute said, the KNTC management has continued to retain the staff implicated in the scandal in which taxpayers lost more than Sh6.5 billion.
“This is improper and continues to raise eyebrows on the retention of staff involved in the fraudulent loss of more than Sh6.5 billion at the KNTC,” he said.
Speaker Amason Kingi directed the Senate Justice, Legal Affairs and Human Rights Committee to open investigations into the allegations of inference with the ongoing probe.
In the probe, the committee chaired by Bomet Senator Hillary Sigei will establish the status of the investigations by the EACC and DCI.
The panel will investigate the KNTC board’s decision to dismiss some staff and retain others, notably those implicated in the scandal.
The committee will furnish the Senate with details of how the KNTC board determined the dismissal and retention of the involved members of staff.
“[We will] investigate the cash withdrawals done through vouchers and cheques by individuals at the KNTC and we request they submit the names and IDs of said individuals,” Chute said.
The committee will also investigate why some staff members who may have been involved are still in office, thus potentially inferring with the probe.
They include the general finance manager, a senior accountant and a finance officer who were in office at the time the scandal rocked the agency.
“It is fundamentally important the committee directs members of staff mentioned above to step aside to allow investigations to be done,” Chute said.
[‘We must] “Establish how the disciplinary committee handling the matter is to be administratively fair and transparent in this very apparent compromise in procedure and give a sound report,” he added.
Further, the panel will investigate and establish timelines and mechanisms within which two companies directed to refund KNTC will settle the monies.
They include Multi-Commerce International Limited and Charma Holdings Limited, which were reportedly directed to refund Sh2.28 billion and Sh487 million, respectively.
Last month, the Senate Trade Committee unearthed how the agency lost Sh6.6 billion out of the Sh9 billion set aside for the importation of edible oils to cushion Kenyans from the high cost of the product.
The probe revealed that 797,564 20-litre imported jerricans were allegedly diverted and sold to two companies identified as Environ Pro and EnBV Kenya to be re-exported.
Documents tabled before the committee showed a 20-litre jerrican was sold by the corporation for Sh3,028, far below the local retail price of cooking oil.
In the period, a 20-litre container in Kenya was retailing for about Sh5,000. Under the programme, KNTC was to sell them for about Sh4,800 if it was to recoup the amount that had been channeled to providing affordable edible oils.
Legislators were keen to understand precisely how much was recovered from the sales of cooking oil imported under the programme.
The corporation acknowledged Kenyans lost Sh6.6 billion, that the process was “messed up” and said it would use this case as a lesson.
KNTC said it made Sh25.97 billion from the sale of 1,687,083 jerricans of cooking oil. This was almost half of the 2.2 million 20-litre jerricans that were to be imported under the programme.