More staff at the Kenya National Trading Corporation (KNTC) were Thursday and Friday questioned over the Sh16 billion edible oil scam.
Officials said the staff including the CEO Pamela Mutua who was there for a further statement left the Directorate of Criminal Investigations offices after a grilling session.
Other staff and major suppliers in the scam were Friday December 22 expected to be grilled, sources said. The DCI and Ethics and Anti Corruption Commission (EACC) are investigating the saga.
Detectives 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 irregular award of tenders for supply and delivery of food commodities.
Read: KEBS Says Sh17 Billion Imported Edible Oil Safe for Consumption
“We are investigating to establish what happened, who were involved, and how much money was lost,” said EACC CEO Twalib Mbarak.
The commission added that it will 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.
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 Sh8.12 billion tender to supply vegetable oil and Shehena Company Limited to supply jerrycans of edible oil at Sh1.33 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.
Read Also: KNTC CEO Pamela Mutua Among Top Officials Arrested Over Sh16 Billion Food Importation Probe
However, three single administrative documents currently with the investigators each have different entries showing the discrepancies.
It all began when KNTC, which falls under the Ministry of Investments, Trade and Industry, got the go-ahead from Cabinet in October last year.
The Cabinet memo stated: “To address the cost of living, Cabinet approved a framework to position the Kenya National Trading Corporation as the anchor of state initiatives to create a price stabilizer for essentials household food items.”
“KNTC will leverage on its infrastructure and capacity to help stabilize price swings of essential items that are abnormal and against the public interest.”
Customs entry documents revealed that KNTC did not pay the following taxes: customs duty (35%), import declaration fees (3.5 percent), railway development levy (2.0 percent), agricultural food authority levy (20 percent), resulting in a total tax loss of 42.5 percent .
The money was however paid after the police commenced their probe. They will later send their probe file to the Office of the Director of Public Prosecutions with recommendations on the same, officials said.
EACC asked for various documents on the importation process. In a letter dated October 17, 2023, to Pamela,
EACC Director of investigations Pascal Mweu said: “The Commission is investigating allegations of corruption and embezzlement of public funds at KNTC through irregular award of tenders for supply and delivery of food commodities during the financial years 2022/2023 and 2023/2024.”
He asked for approved budgets) and procurement plan(s) for financial year 2022/2023 and 2023/2024, approved procurement requisitions Minutes of Board of Directors’ deliberations and approvals on procurement of food commodities and advertisements and/or invitation to bid or registration of suppliers for financial year 2022/2023 and 2023/2024.
Tender documents (bids) submitted by bidders and tender securities (bid bonds).
Appointment letters for tender opening and evaluation committee(s), tender opening registers), opening minutes and meeting attendance registers, tender evaluation minutes/reports and meeting attendance registers, professional opinions for all the tenders and letters of notification of intention to enter into a contract (award & regret letters) and acceptance letter are also needed.
Mweu also demanded performance securities (performance bonds), bank account numbers for all the companies engaged in the tender and all sales data and revenue reports for sale of the food commodities to local companies.
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