Heads have started to roll in the controversial Sh17 billion edible oil scandal after detectives arrested and questioned key officials at the Kenya National Trading Corporation (KNTC).
Among those arrested last night by the Ethics and Anti-Corruption Commission (EACC) include KNTC chief executive officer Pamela Mutua who was picked up from her house and taken for questioning.
Also arrested are bank officials who handled transactions for the questionable deal which has seen tax payers lose Sh17 billion in what had been framed as a cheap edible oil importation deal only to end up being another money-making venture for corrupt government officials and tenderpreneurs.
Sources within the security sector say that detectives have trained their eyes on businesswoman Mary Wambui, a senior state house official and cabinet secretary, who will also be brought in for questioning in order to explain their role in the scam.
In a letter on January 20, 2023, Treasury PS Chris Kiptoo approved the importation of 125,000 metric tonnes of cooking fat and oil by the corporation duty-free for a period of a year.
President William Ruto personally ordered investigations into the scam after he discovered that state officials and tenderpreneurs had inflated the price of the cooking oil meant for importation in order to lower the cost of living by $7 per litre.
The 125,000 litres of cooking oil imported under the scheme were initially meant to cost Sh9 billion. The consignment ended up costing Sh17 billion. And as if that was not enough, the four companies that landed the deal were paid up front.
KNTC single-sourced the companies contracted to import 125,000 metric tonnes of edible oil.
KNTC awarded Multi Commerce FCZ a Ksh.8.12 billion tender to supply vegetable oil and Shehena Company Limited to supply jerricans of edible oil at Ksh.1.33 billion.
The High Court blocked the importation of the oil in June following an application by the Law Society of Kenya (LSK), arguing that the decision to allow the Kenya National Trading Corporation (KNTC) to bring in the commodity duty-free was irrational.
