The Ethics and Anti-Corruption Commission (EACC) has arrested Yagnesh Devani, the principal suspect in the Ksh7.6 billion Triton oil scandal.
The suspect, who was apprehended from his offices in Nairobi, is currently at the cells in Milimani Anti-Corruption Court awaiting arraignment.
The arrest has been confirmed by EACC Spokesperson Eric Ngumbi.
Triton oil scandal
The Triton oil scandal dates back to 2008 when an audit revealed that stocks amounting to 126.4 million litres were irregularly and illegally released to Triton Petroleum Limited between November 2007 and November 2008.
According to the audit, Triton was not entitled to the stocks, nor did financiers authorise the release as required under contractual arrangements.
The audit revealed that the Kenya Pipeline Company (KPC) breached an agreement with financiers stipulating that financed stocks would only be released on the financiers’ authority.
Further, it was revealed that KPC also issued false statements regarding those stocks thus exposing itself t to suits by the financiers and defrauded oil marketers.
The amount in the scandal was calculated using a conservative price of Ksh60 per litre then, at a time when the average price was Ksh100 per litre.
At the height of the scandal, the Kenya Revenue Authority (KRA)Â informed banks and receivers who
attached Triton’s property of its claim amounting to Ksh4 billion in unpaid taxes and penalties by Triton.
Also, the taxman had revealed that it was seeking Ksh2 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).
At first, it was alleged that Triton enjoyed good political connections which it could have exploited to receive preferential treatment at KPC.
During the regime of President Daniel arap Moi, Triton clinched a lucrative contract to supply petroleum products to the Kenya Power and Lighting Company several times.
