Senators allege meddling in Sh16.5 billion edible oils probe, demand transparency

Senators have demanded clarity on the status of investigations into the controversial Sh16.5 billion edible oils scandal, with some alleging that high-level interference is obstructing the inquiry.

The calls come after the Kenya National Trading Corporation (KNTC) admitted that the country lost at least Sh6.5 billion in the controversial edible oils import deal.

Addressing the Senate, Marsabit Senator Mohamed Chute raised concerns over suspected tampering with evidence and procedural interference within the probe.

He claimed that despite ongoing investigations by both the DCI and EACC, certain KNTC employees implicated in the scandal remain in their positions, even as some employees were dismissed due to their alleged involvement.

The Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC) have been investigating the matter since last year, following concerns over alleged fraud and financial mismanagement.

According to Chute, taxpayer funds exceeding Sh6.5 billion were lost in unclear circumstances, with suspicions of fraudulent activity linked to two companies accused of overcharging KNTC.

"I am reliably informed of an ongoing tampering with evidence and processes in this investigation. This is improper and continues to raise eyebrows on the retention of staff involved in the fraudulent loss of more than Sh6.5 billion at the KNTC," Chute said.

Overcharging

Chute identified Multi Commerce International Limited and Charma Holdings Limited as the firms allegedly involved in overcharging.

He noted that investigations had shown both companies issued credit notes and were instructed to reimburse the state corporation.

Multi Commerce International Limited has reportedly been directed to refund Sh2.28 billion, while Charma Holdings Limited is expected to return Sh487 million.

Nandi Senator Samson Cherargei urged the EACC to clarify its role in addressing the alleged misappropriations.

"The allegations of misappropriation of Sh6.5 billion by KNTC must be looked at. We hope that the EACC will arrest all perpetrators of this KNTC heist,” Cherargei said.

Migori Senator Eddy Oketch advocated for a formal commission of Inquiry or a special committee to fully investigate the KNTC.

"It cannot be that people who have overseen the pilferage of billions of shillings are left in the office while those who have done the work of a whistleblower...are the ones who end up being sacked. We cannot allow this to continue,” he argued, highlighting concerns over systemic corruption within the agency.

The scandal has led to the arrest of a former KNTC managing director and other top officials.

With growing concerns about accountability, the Senate Committee on Justice and Legal Affairs, led by Bomet Senator Hillary Sigei, has been tasked with investigating the continued employment of KNTC staff suspected of involvement in the fraud.

Impartial investigation

Senator Chute highlighted specific individuals under scrutiny, suggesting they should step aside to allow an impartial investigation.

The committee is also expected to clarify the criteria behind the KNTC Board’s decisions on employee dismissals and retentions and to investigate cash withdrawals allegedly made via vouchers and cheques by individuals within the agency.

“I request they submit the names and identity numbers of the said individuals as well as furnish the Senate with details of how KNTC Board determined the dismissal and retention of the involved members of staff,” Chute said.

Further, the committee has been tasked with establishing a timeline for the reimbursement of funds by companies implicated in the scandal, including Multi Commerce International Limited and Charma Holdings Limited, which owe KNTC Sh2.28 billion and Sh487 million, respectively.

The investigation received further backing in October last year from President William Ruto, who ordered a probe into the financial conduct of three senior government officials accused of inflating prices on imported edible oil.