Court finds Devani has case to answer in Sh1.5b jet fuel scam

Businessman Yagnesh Devani is accused of the irregular disposal of 451,572 metric tonnes of automated gas oil, jet fuel, and motor spirit premium.

A court has found businessman Yagnesh Devani and former finance manager of Triton Petroleum Company Limited Mahindra Pathak have a case to answer in connection with the 2008 Sh1.5 billion Kipevu jet fuel scam.

Milimani Principal Magistrate Robinson Ondike ruled that Devani, his company Triton Petroleum Limited, and Pathak, have a case to answer after the prosecution proved fraud charges beyond reasonable doubt, warranting the accused to present their defense.

Devani, Pathak, and a former KCB employee, Peter Muthungu, are alleged to have played a role in the theft of 318.656 metric tonnes of jet fuel, valued at Sh1.5 billion, from Kenya Commercial Bank (KCB). The fuel was allegedly taken from the Kipevu oil refinery in Mombasa in 2008.

“After evaluating the evidence on record, I find that the prosecution has tendered sufficient evidence to prove the criminal charges against all the accused persons in this case. Accordingly, I place them on their defence,” ruled Ondike.

In the ruling, the court found that evidence from over 24 witnesses overwhelmingly tied Devani, Triton Petroleum Limited, Pathak, and Muthungu to the theft. The magistrate also ordered Devani, who has been tried in absentia, to appear in person on January 20, 2025, to defend himself in the fraud charges against him.

Devani’s legal team opposed the ruling, arguing that it was unjust for him to defend himself after being tried in absentia for the past 16 years. However, Magistrate Ondike maintained that Devani and his company had never been removed from the charge sheet and that since he was now available in the country, he must stand trial.

The ruling comes just a few months after the court rejected an application by the Director of Public Prosecutions (DPP), Renson Ingonga, to have the case against Devani and Triton Petroleum dismissed.

In August of this year, Ingonga had sought to end the case under section 84(a) of the Criminal Procedure Code, claiming that Devani had never formally pleaded to the charges alongside his co-accused, and most witnesses had testified in his absence.

The court, however, refused to terminate the case and ordered the case to proceed to its logical conclusion.

The charges against Devani stem from allegations that he stole jet fuel purchased with funds provided by KCB to his company, Triton Petroleum. This loan facility was intended to enable Triton to purchase the highly flammable petroleum product.

Devani is also accused of the irregular disposal of 451,572 metric tonnes of automated gas oil, jet fuel, and motor spirit premium, valued at USD 9,019,630 (approximately Sh1.47 billion), which had been mortgaged to KCB.

In another count, he is accused of stealing 418.134 metric tonnes of motor spirit premium, valued at USD 438,031.10 (Sh56.7 million) belonging to KCB Kenya. It is alleged that he was assisted in committing the offences by  Pathak and Mathungu.

The alleged offences took place between April 23 and December 4, 2008, at the Kipevu Oil Storage facility in Mombasa.

Devani then fled to the United Kingdom following the Sh7.8 billion Triton oil scandal while his co-accused were charged. An arrest warrant was issued against him. Despite his absence, the State proceeded with the case.

After more than a decade on the run, he was charged on January 23, 2024, and was freed on a cash bail of Sh1 million.