Sh7.6bn oil scam: Yagnesh Devani to be held at Industrial Area Remand Prison for 13 days
Businessman Yagnesh Devani will be held at the Industrial Area Remand Prison for the next 13 days pending a decision on whether to release him on bond after he denied charges of fraudulently disposing of mortgaged petroleum products in September 2008.
Anti-corruption chief magistrate Thomas Nzioki ordered the billionaire to remain in custody pending his ruling on the application, which was opposed by prosecutors who argued that he posed a flight risk.
In an affidavit, Mr Andrew Lekamparish said Mr Devani fled the country in 2009 after the Ethics and Anti-Corruption Commission (EACC) completed investigations into the Sh7.6 billion oil scandal.
“Arising from the past conduct of the accused, I believe that there are compelling reasons to deny Yagnesh Mohanlal Devani bail or bond, which include but are not limited to the fact that he is a flight risk and is likely to abscond and fail to attend court again if granted bail,” Mr Lekamparish said.
The investigator said Mr Devani fled the country after he and his company- Triton Petroleum was accused of irregular release of 126 million litres of oil in breach of a collateral financing agreement involving Emirates National Oil Company.
The prosecution told the court that the Directorate of Criminal Investigations (DCI) had to file extradition proceedings against Mr Devani in the UK but the tycoon opposed the application to the court of appeal in the UK.
State prosecutor Jeremiah Walusala opposed his release on bond saying Mr Devani evaded justice for 15 years claiming that the conditions were hostile to him and prison conditions were woeful.
Businessman Yagnesh Devani at Milimani Anti-Corruption Court on August 6, 2024.
Mr Walusala added that Mr Devani allegedly sought asylum to defeat justice.
Flight risk
Mr Devani, through lawyer Moses Kurgat, said his client was not a flight risk since he returned to Kenya after losing extradition proceedings in the UK.
He said Mr Devani challenged the deportation order in the UK because he believed in the rule of law and has since returned to Kenya to face justice.
“When he travelled to the UK, the government had not filed any charges against him and it wasn’t true that he was running away from justice. While in the UK, a criminal case was filed and the extradition proceedings were commenced and he vehemently opposed based he felt he was not going to get justice,” he said.
Mr Kugat said Mr Devani had sought asylum but had finally come to defend his innocence. He applied for his release on bond, saying he would not run away and that the prosecution had not provided compelling reasons to deny him bail.
He maintained that he was a law-abiding Kenyan and that his investments in the country amounted to between Sh30 billion and Sh40 billion.
Mr Devani was arrested on Tuesday, August 6 at his offices and taken to Milimani Law Court where the prosecution asked the court for more time to present the new charges against him.
He denied a total of 11 counts related to the 2008 Triton oil scandal.
The prosecution said Mr Devani released a total of 126 million liters of mortgaged petroleum products worth about Sh7.6 billion, without the consent of mortgage owners.
Mortgaged goods
He denied a total of 11 counts including fraudulent disposition of mortgaged goods, conspiracy to defraud and obtaining money by pretenses.
Triton is accused of disposing of 675.592 cubic metres of petroleum valued at Sh71 million ($550,020) to Total Kenya Limited without the consent of Emirates National Oil Company.
Another count stated that with intent to defraud Emirates National Oil Company (Singapore) Limited, Triton disposed of 13,054.850 cubic meters valued at $10,446,888.36 (approximately Sh1.3 billion) and Sh32 million of the said fuel to Total Kenya Limited without the consent of the Singaporean firm, who was the mortgagee.
The charge sheet stated that he committed the offence on September 5, 2008, in Nairobi being the director of Triton, an allegation he committed with others before who have already been charged.
Earlier, the court withdrew earlier charges brought against him following a request by the prosecution.
The prosecution said whereas Mr Devani was charged in January, his co-accused have been in court for the past decade and more than 24 witnesses testified in his absence.
The DPP is to present an affidavit stating the status of Triton as at 2009 when the offence is alleged to have been committed.
This was after Mr Devani declined to plead to the charges on behalf of the company, arguing that there were other directors of the company and the firm was under liquidation.
The magistrate asked for a pre-bail report to determine his character since he returned to the country, and the whereabouts of his son and wife, after his lawyer said his family reside in Kenya and he cannot, therefore, run away.
