Ksh 30B Edible Oil Fraud Rocks Government; EACC Targets High-Ranking Officials for Questioning
Ethics and Anti Corruption Commission (EACC) now estimates that the amount of tax payer’s money that has been embezzled in the edible oil scam could run into Ksh.30 billion, and not just the Ksh.16.5 billion currently being investigated.
This as the Senate Committee on Trade and Investment lamented deliberate frustrations by officials both at the Kenya National Trading Corporation (KNTC) and its parent Trade ministry in its quest to probe the scam.
Detectives both at the DCI and EACC are targeting senior government officials, believed to have had a hand in the multi-billion shilling plunder.
EACC is currently in the process of forensically examining documents availed to the commission by the KNTC.
The alleged embezzlement is believed to have taken place through the irregular award of tenders for supply and delivery of food commodities.
“We are investigating to establish what happened, who was involved, and how much money was lost,” said EACC CEO Twalib Mbarak.
The commission added that it would go after private, public, and proxy companies in the multi-billion shilling scandal. It has so far questioned the procurement heads among other senior officers drawn from KNTC lined up for grilling.
The Senate Committee On Trade and Investments who were on a fact-finding mission Thursday failed to make headway as those required to shed light on the multi-billion scandal were a no-show.
The legislators now say that since answers were not forthcoming from government officials, they will resort to seeking explanations from suppliers involved in the contentious importation.
“We will summon suppliers to this committee…they should come with documents on what they supplied and how much they were paid,” Kiambu Senator Karungu wa Thang’wa said.
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“The entire management of KNTC is not here…we are rescheduling this meeting again, and please note we are not just joking, we need time with you and we need seriousness.”
However, documents filed before the Senate indicated that KNTC single-sourced the companies contracted to import some 125,000 metric tonnes of the edible oil and set higher prices as opposed to what had been initially agreed on.
KNTC awarded Multi-Commerce FCZ a Ksh.8.12 billion tender to supply vegetable oil and Shehena Company Limited to supply jerrycans of edible oil at Ksh.1.33 billion.
On its part, the Kenya Revenue Authority (KRA) facilitated the subsequent imports. The National Treasury later issued a circular indicating the quantities of edible oils to be imported.
The consignment included 125,000 metric tonnes and jerricans, which meant that 6.9 million 20-litre jerricans were imported.
However, three single administrative documents currently with the investigators each have different entries showing the discrepancies.
Ksh 30B Edible Oil Fraud Rocks Government; EACC Targets High-Ranking Officials for Questioning
