KNTC Boss Pamela Mutua Grilled Over Ksh.16.5B Edible Oils Scandal.
The Kenya National Trading Corporation (KNTC) Chief Executive Officer Pamela Mutua was on Tuesday grilled at the Directorate of Criminal Investigations (DCI) over her alleged role in the Ksh.16.5 billion edible oils scandal.
Ms. Mutua is among senior officials of the State agency who were arrested on Monday evening and spent the night in police custody.
In June this year, it emerged that companies owned by people with links to the government were single-sourced to procure edible oils through KNTC.
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.”
However, a document filed in the National Assembly showed that KNTC single-sourced companies contracted to import 125,000 metric tons of edible oil.
Among the companies awarded the local purchase order were: Shehena Trading Commodity Limited, 100% owned by Invest Africa – FZCO, a company registered in a Dubai free zone, headed by a Wilfred Saroni, who was said to be a close associate of Cabinet Secretary Moses Kuria.
Another company is Multi Commerce FZC, a company registered in a Dubai free zone that is reportedly owned by a prominent businessman associated with a major new mall in Eastleigh.
Customs entry documents revealed that KNTC did not pay the following taxes: customs duty (35%), import declaration fees (3.5%), railway development levy (2.0%), agricultural food authority levy (20%), resulting in a total tax loss of 42.5% .
Like KEMSA during the COVID-19 procurement scam, KNTC is now stuck with overpriced stock that it cannot sell.
Taxpayers will lose Ksh.6 billion if the state corporation losses and its objective of offering cheaper alternative products is hot air.
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