Home KENYA New Details Emerge in Multi-Billion Oil Import Saga as Top Officials Arrested

New Details Emerge in Multi-Billion Oil Import Saga as Top Officials Arrested

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More details are now coming out about a controversial oil import saga that has seen senior officials in the energy sector arrested.

On Friday, detectives from the Directorate of Criminal Investigations arrested Daniel Kiptoo, Joe Sang, Mohamed Liban and Joseph Wafula.

During the operation, police say they recovered more than Ksh100 million in cash from their homes.

Central to the inquiry is the movement of the cargo of fuel reported to have been diverted to Kenya through unknown means. The fuel was supposed to move to Angola but it reached the Port of Mombasa.

The ship, described as MV Paloma, arrived in the country carrying over 60,000 metric tonnes of fuel. There are suspicions that the fuel might have come into the country through routes other than the official government channels used in importing oil products.

Sources claim that initially the fuel belonged to the Saudi company Saudi Aramco but changed hands after which it was bought by a local business.

It was alleged that the fuel was landed at the Port of Mombasa between March 27 and March 29.

The investigators suspect that such dealings would mean that the fuel was sold in the country in violation of the required procedures leading to a management problem in the oil sector.

The issue of pricing also raises suspicions on the part of the detectives with reports claiming that the fuel might have been priced at an excess of Ksh4 billion. A second shipment would increase the amount lost.

Detectives are also looking into whether the deal took advantage of a fuel shortage at the time. The shortage had been linked to delays in another shipment due to disruptions in the Strait of Hormuz.

At the same time, the quality of the fuel is also under question. Reports suggest it may not have met the required standards, including high sulphur levels.

The issue is said to have first been raised internally at the Kenya Pipeline Company before being reported to investigators.

The four officials were questioned for several hours at DCI headquarters in Nairobi as investigations continue.

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