Oil tycoon Yagnesh Devani to remain in custody for 13 days

Businessman Yagnesh Devani leaves a Milimani court after he was acquitted in the controversial oil import scandal on February 12, 2024. [Collins Kweyu, Standard]

Tycoon Yagnesh Devani who has been charged with corruption in connection with the Sh7.6 billion oil scandal will now spend 13 more days in remand pending bail ruling.

Milimani Chief Magistrate Thomas Nzyuki ordered Devani to be remanded at Industrial Area Remand Prison and set August 19, for bail ruling.

The tycoon on Wednesday denied 11 charges of conspiracy to defraud, obtaining money by false pretense, and fraudulent disposition of mortgaged oil belonging to Emirates National Oil Company worth Sh7.6 billion.

Nzyuki ordered that a pre-bail report be filed before the court within the next seven days.

He said the report should detail persons related to Devani, their whereabouts, and the social behaviour of the accused person.

"The pre-bail report should be done with an element of a social inquiry. Find out persons related to him. Also, you need to find out about his behaviour, where the wife and the son are," he said directed.

The Director of Public Prosecution opposed Devani's release on bail arguing that he may abscond trial.

"For someone who absconded court for 16 years to a point extradition proceedings were done to compel him to come back to attend to his matters is a compelling reason to deny him bail," Prosecutor Jeremiah Walusala told the court.

Walusala said that the accused is facing serious offence of the irregular release of 126 million liters of petroleum products worth about Sh7.6 billion by Kenya Pipeline Company Ltd to Triton Petroleum Company Ltd in breach of a Collateral Financing Agreement involving Emirates National Oil Company (ENOC), which attracts stiff penalties.

"Arising from the past conduct of the accused, I believe that there are compelling reasons to deny 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," the prosecutor said.

But Devani's defence team led by Moses Kurgat urged the court to release him on bail saying the charges are bailable.

"Devani is a person who believes in fair judicial process and will abide by all conditions set by the court. He is a law-abiding citizen and will present himself as and when required," Kurgat said.

While seeking bail, Devani told the court that he was not interested in absconding court since he participated faithfully in the UK extraction proceedings.

Further, the tycoon undertook to fully cooperate with the probation officers and have the report filed in court in good time.

Yesterday's plea-taking had initially been opposed during the morning court session.

Kurgat told Magistrate Nzyuki that it wouldn't be appropriate to have Devani plead on behalf of Triton Petroleum Company because it was liquidated.

The tycoon was allegedly the managing director of Triton at the time the criminal offence was committed.

"The official liquidator should be in court to appear to take a plea on Triton," said Kurgat. The court heard that Devani is not the only director of Triton and the burden of the dispute should not be shouldered by him alone.

But state counsel Walusala urged the court to proceed with the plea-taking taking saying they are not aware of the company being under liquidation.

"There is no document or any pleadings shown to support his submission," he said.

This prompted the court to ask for information regarding ownership of Triton as of December 2009.

Nzyuki also asked parties who should be held responsible on behalf of Triton.

"Should it be the official receiver or the directors and who are these directors?" Posed the Magistrate.

As the details of this information are sought and tabled before the court, Nzyuki said he will proceed with the plea taking of charges facing Devani and defer those related to the company.

The court clerk then proceeded to read out the charges levelled against Devani.

He denied eleven counts levelled against him.

On count one, he was charged with fraudulent disposition of mortgaged goods.

It is alleged that Devani on September 5, 2008, being the Managing Director of Triton Petroleum Company Limited, together with others before the court being the mortgagor of 19,186.130 cubics (Diesel) with intent to defraud the mortgagee, Emirates National Oil Company (Singapore) Limited, disposed of a volume of 13,054,850 cubic meters valued at USD10,146,888.36 and Sh32,017,783.66 (totaling Sh1.6 billion ) of the said fuel to Total Kenya Limited without the consent of Emirates National Oil Company (Singapore) Limited.

He faced another count of conspiring to defraud Kenya Shell Limited of USD 2.2m and Sh7,059,201.59 by purporting that Triton Petroleum Company Limited had a volume of 4,449.42 cubic meters of diesel (AGO) held by Kenya Pipeline Company Limited at the Kipevu oil storage available for sale.