The Kenya National Trading Corporation (KNTC) Managing Director Pamela Mutua among other KNTC officers and bank officials were today arrested and grilled for hours at the Directorate of Criminal Investigations (DCI) in connection to the h16.5billion edible oil scandal.
They are expected to be arraigned to face economic crime and abuse of office charges on Wednesday this week.
In a sting con-current raid, the suspects were picked from the KNTC offices and bank respectively before being interrogated for hours at DCI headquarters along Kiambu Road.
Investigations reveal that the probe is set to reveal how KNTC managed to secure funds and whether the import of edible oils and sugarcane among other items was done in a proper manner.
“We are investigating whether money was lost. We want to establish how KNTC secured funds and whether the import of the food items which include edible oils and sugar among other items was done in a proper way.” A detective privy with the probe intimated to The Informer Media Group.
Upon completion of their investigation, the DCI is expected to forward a case file to the Office of the Director of Public Prosecution (ODPP) for the next step.
This comes after last month, the anti-graft agency (Ethics and Anti-Corruption Commission-EACC) launched a probe into the alleged embezzlement of public funds at the KNTC through the irregular award of tenders and delivery of food commodities for the financial year 2022/2023 and 2023/2024.
In a letter signed by the director in charge of investigations Paschal Mweu, the anti-graft agency requested the corporation to provide how they approved the budget and procurement plans for the financial year 2022/2023 and 2023/2024.
“To facilitate the investigation, kindly provide us with all the original documents listed below in relation to the procurement of the food commodities.” The letter which is copied to KNTC Managing Director Pamela Mutua read in part.
President William Ruto ordered investigations into the finances of three senior-ranking government officials implicated in the loss of millions through the inflation of prices of edible oils.
Through his own initiative, the head of state negotiated a contract with the cooking oil manufacturers on the understanding that this would bring down the cost of the 125,000 metric tonnes of edible oil which was part of a strategy to tame the high cost of basic commodities.
Ruto later reported the three officers inflated the price by an average of $7 per litre, thus negating the original intention of Kenya importing the cooking oil.
Former Trade and Industrialization Cabinet Secretary Moses Kuria defended the questionable deal saying it was above board.
Recently while being grilled by legislators in parliament, Agriculture Cabinet Secretary Mithika Linturi indicated that millions were lost.
A nine months’ investigative exposé by The Informer Media Group published and broadcasted less than a fortnight ago revealed a blow by blow account how the lucrative multi-billion tenders were dished out to a select few companies without competitive tendering process.
As Mutua and other suspected accomplices were being grilled at Mazingira House, a heated session before Senate played out as senators demanded for physical confirmation of the whereabouts of the claimed Sh16.5billion edible oil imports.
The Senate Committee on Trade and Investment Committee which is carrying out a parallel probe was forced to adjourn prematurely until Senators are shown the location of imported cooking oil brought into the country by KNTC to cushion Kenyans from high prices.
It emerged top officials within the Ministry of Trade and Investment are still unaware of the location of the imported cooking oil.
Irate senators chased away Trade and Investment Cabinet Secretary Rebecca Miano had appeared before the committee accompanied by the Principal Secretaries and heads of departments in the ministry to disclose the whereabouts of the imports.
Miano was unceremoniously forced out after she requested the committee to shelve the matter as the KNTC MD failed to appear as she was arrested by DCI sleuths and was being grilled at the time.
“The Managing Director was yesterday summoned by the DCI and she is still there
Senators decried that they are being taken in circus over the matter accusing KNTC MD for failing to physically establish if indeed the cargo came in and was indeed were stored at the warehouse during their visit in Industrial Area.
“I felt like our inquiry wasn’t welcomed and everything is being done to frustrate our investigations to make sure that the matter goes undetected. If we can prosecute the oil we go for Christmas, I will not be able to sit in these meeting.” Busia Senator Okiya Omtatah.
Kiambu Senator Karungo Thangwa said the session could not continue without a physical confirmation that the oil imports were indeed in the warehouses.
“We need to see this oil, I’m sure even the Cabinet Secretary may not be sure if the imports are still in the warehouse. Let’s just dismiss this meeting so that this department can take us with the seriousness that is deserved.” Thangwa said,
Samburu Senator Steve Ltumbesi insisted that the matter should not be taken lightly as there might be loss of hundreds of millions of shillings through inflation of prices of imported edible oil.
“If it will force us to call the former trade minister, then I think we will have to do that because Kenyans are asking us where is the cheaper oil that you promised?” Ltumbesi posed.
A whistleblowing document filed in the National Assembly shows that the KNTC contracted Multi Commerce FZC for Sh8.12billion to supply vegetable oil and Indian white rice while Standard Petroleum won a Sh5.5billion deal to supply rice, red kidney pinto beans, cooking fat and fertiliser.
On the other hand, Lamar Commodity Trading was awarded Sh2.7billion tender to supply NPK fertiliser while Charma Holdings Limited was awarded a Sh2billion tender to supply edible vegetable oil.
Others are Makram Imports and Export Limited with a Sh1.88 billion tender for the supply of Indian raw white rice, Shehena Company Limited to supply jerry cans of edible oil at Sh1.33billion and Nutrivine Sh187.5 million to supply rice.
While appearing on the floor of the House, former Trade, Industry and Investments Cabinet Secretary Moses Kuria absolved KNTC from any wrongdoing.
Kuria is now serving as the CS for Public Service, Performance and Delivery Management. He was succeeded by Miano in the Trade docket.
