The Ethics and Anti-Corruption Commission (EACC) detectives have arrested businessman Yagnesh Devani, linked to the Kes 7.6 billion Triton Oil scandal.
In a statement, EACC Spokesman Eric Ngumbi revealed that the detectives took Devani to the Milimani Law Courts.
“The Ethics and Anti-Corruption Commission (EACC) has arrested Mr. Yagnesh Devani, the principal suspect in the Kes.7.6 billion Triton Oil scandal, this morning,” he said.
The 2008 Triton scandal was allegedly orchestrated by Devani’s company, Triton Petroleum Limited, which 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 liters of oil were irregularly and illegally released to Triton Petroleum Limited.
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The company was not entitled to the stocks, and financiers did not 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.
Similarly, KPC issued false statements regarding those stocks, exposing itself to lawsuits by the financiers and defrauding oil marketers.
According to Capital News, the scandal’s financial impact was calculated using a conservative price of Kes 60 per liter when the average price was Kes 100 per liter.
During the height of the scandal, the Kenya Revenue Authority (KRA) claimed Kes4 billion in unpaid taxes and penalties from Triton.
Additionally, KRA sought Kes2 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 allegedly enjoyed significant political connections, potentially exploiting them for preferential treatment at KPC.
