Triton Oil scandal: Yagnesh Devani freed on Sh5 million cash bail 

Former Managing Director of Triton Petroleum Company Limited, Yagnesh Mohanlal Devani, has been released on a Sh5 million cash bail after pleading not guilty to 11 counts of fraud including fraudulently disposing of mortgaged petroleum products in September 2008.

The runaway tycoon has spent 13 days in remand after he was arrested by the Ethics and Anti-Corruption Commission (EACC) on alleged Sh7.6 billion Triton Oil scandal.

Milimani Magistrate Thomas Nzyoki ruled that the accused must either deposit a Sh5 million bail with two personal sureties or provide a Sh20 million bond with one surety of the same value.

The court approved his release on bail after reviewing a pre-bail report submitted by the probation officer, which recommended his release while awaiting trial.

In a court session on Monday, Devani's lawyer, Mwenda Bata, argued that the bail amount was excessively high. However, the court maintained that Devani would need to prove his inability to pay the cash bail if he wished to have the terms revised.

The court also prohibited the accused from leaving the country or contacting prosecution witnesses while out on bail.

“Let his passport be deposited in court. He is also barred from interfering with prosecution witnesses,” the Magistrate said.

The prosecution opposed his release, citing concerns that Devani posed a flight risk. They highlighted his history as a fugitive in the United Kingdom since 2009, following the issuance of an arrest warrant.

Extradition challenged

At the time, the suspect challenged his extradition from the UK by instituting multiple judicial proceedings. He was eventually only extradited in January this year following bilateral cooperation between Kenya and the UK.

The prosecution expressed fears that if granted bond, Devani might seek asylum in a country that lacks bilateral ties with Kenya, which could complicate the continuation of the case.

“It was only through bilateral cooperation between Kenya and the UK that the accused was eventually extradited and charged. The prosecution further pointed out that granting bond could lead to the accused seeking asylum in a country without bilateral cooperation with Kenya, making it difficult to proceed with the case,” the ODPP said.

The accused person however denied all the charges levelled against him and was detained at the Industrial Area Prison.

Devani is linked to the Triton scandal, which involved his company, Triton Petroleum Limited. As the executive chairman, Devani's company secured a lucrative contract to supply oil through a system meant to support local oil firms.

The scandal erupted in 2008 when Triton Petroleum was implicated in the fraudulent handling of oil products, resulting in losses of approximately Sh7.6 billion (around $70 million) to banks and investors, including Kenya Commercial Bank (KCB) and Fortis Bank.

An audit revealed that between November 2007 and November 2008, Triton Petroleum Limited unlawfully obtained 126.4 million litres of oil. Triton, which had no entitlement to the stocks, received the oil without authorisation from financiers, violating contractual agreements.

The Kenya Pipeline Company (KPC) breached its agreement with financiers, which stipulated that oil stocks could only be released with their consent. Furthermore, KPC provided false statements regarding these stocks, exposing itself to legal action from financiers and defrauding oil marketers.

The financial impact of the scandal was estimated conservatively at Sh60 per litre, despite the average market price being Sh100 per litre at the time. During the scandal, the Kenya Revenue Authority (KRA) demanded Sh4 billion in unpaid taxes and penalties from Triton.

Additionally, KRA sought Sh2 billion in unpaid corporation taxes for the period ending December 2007 and penalties related to storage at the Kipevu Oil Storage Facility in Mombasa.