Edible Oils Scam Unveiled: Azimio Coalition Demands Trade Secretary’s Resignation
As the edible oils scam unfolds and the country stands to lose billions of shillings on the importation of 125 000 metric tonnes of edible oils, the Azimio coalition is now demanding the resignation of Trade Cabinet Secretary Moses Kuria after documents linked him to the scam.
Documents in the possession of GossipA2Z indicate that, although there was no provision in the law requiring the Treasury CS to waive duty except for emergency relief goods, the Kenya Gazette Notice number Vol. CXXIV No. 250 was improperly used to import edible oils, as the notice itself covered the drought response initiative and not edible oils.
It is unclear why the tax collector used the incorrect gazette notice.
Instead of importing the oil directly from Malaysian or Indonesian manufacturers, additional evidence demonstrated that the Kenya National Trade Corporation contracted with a single company to import and sell it.
In a late-evening statement, Azimio criticized Kuria, accusing him of using insults to cover up his mistakes and stating that heads must roll.
The Azimio coalition also demands that President William Ruto explain his level of familiarity with the scandal and the measures he intends to take against those involved.
William Ruto must address the nation on what he knew about the scam and when he knew it, as well as what he intends to do about it.
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“Heads need to roll. Someone must assume accountability. Trade CS Moses Kuria should take the initiative and resign. “It cannot be business as usual to defraud afflicted citizens and then go on a rampage against the same citizens whose money has been stolen,” the statement reads.
In addition, the opposition demanded that the Kenya National Trading Corporation, which was tasked with overseeing the procurement, come clean and disclose whether they were coerced to defraud Kenyans.
“Azimio la Umoja is deeply disappointed but not surprised by what is now officially a grand scam involving the Kenya Kwanza administration secretly ordering the duty-free importation of thousands of tonnes of cooking oil through the Kenya National Trading Corporation at the beginning of this year,” Azimio explains.
“We are surprised, but not shocked, that KNTC, which was struggling financially and structurally at the time, never issued a competitive bid or invited local manufacturers to participate in the planned importation. The institution willingly served as a conduit and facilitator for this fraud.”
Among the local purchase order recipients is Shehena Trading Commodity Limited, which is wholly owned by Invest Africa – FZCO, a Dubai-free zone company. Mr. Wilfred Saroni, the chief executive officer, is closely associated with the trade and investment cabinet secretary.
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Multi Commerce FZC, a Dubai free zone-registered company reportedly owned by a prominent businessman with ties to a major new mall in Eastleigh, is a second company.
Customs entry documents in our possession indicate KNTC failed to pay the following taxes: customs duty – 35%, import declaration fees – 3.5%, railway development levy, and – 2.0% agricultural food authority levy – 20%, for a total tax loss of 42.5%.
Similar to KEMSA during the Covid-19 procurement scam, KNTC is currently unable to sell its overpriced inventory.
Taxpayers will incur a loss of Ksh.6 billion if the state corporation incurs losses and its goal of providing cheaper alternative products proves to be a mirage.
The politically connected importers, however, will smile to the bank with a $41 million (Ksh.5.6 billion) profit.
In a strongly worded statement, Azimio urged investigative agencies, in particular the EACC and Directorate of Criminal Investigation, to move swiftly to uncover the truth behind this fraud.
This should include Mr. Ruto, according to Azimio.
Edible Oils Scam Unveiled: Azimio Coalition Demands Trade Secretary’s Resignation
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