The Kenya National Trading Corporation (KNTC) is in the throes of a burgeoning scandal, with pivotal figures, including its CEO, Pamela Mutua, finding themselves under the microscope of the Ethics and Anti-Corruption Commission (EACC).
The issue at hand? A whopping Ksh. 16.5 billion edible oil importation scam that has not only thrown the corporation into disarray but also raised eyebrows about the integrity of certain banking entities.
KNTC's CEO under Scrutiny
Pamela Mutua, the Chief Executive Officer of KNTC, has been summoned by the Directorate of Criminal Investigations (DCI) over her alleged involvement in this multi-billion scam.
The crux of the matter revolves around companies, linked to the government, that were handpicked to procure edible oils via KNTC. The allegations suggest that KNTC conveniently sidestepped specific taxes, leading to a total tax loss of 42.5%.
If these allegations hold water, taxpayers stand to lose Ksh.6 billion, and the corporation's objective to provide affordable alternative products hangs in the balance.
High-Level Arrests and Financial Misconduct
Key officials at the KNTC have been apprehended over the scandal involving the import of 125,000 metric tonnes of cooking oil and fat. The importation, which was approved duty-free, ended up costing Ksh.17 billion.
The four companies that secured the deal were paid upfront, further intensifying the scrutiny. The High Court stepped in to halt the importation of the oil in June, following an application by the Law Society of Kenya (LSK).
Corruption at the Core
The ongoing probe by the EACC seeks to unearth the full details of this scandal and bring the perpetrators to justice.
This incident has brought to light concerns about deep-rooted corruption and financial misconduct within the ranks of KNTC and the involved banking institutions.
As the investigation unfolds, the spotlight will remain firmly on corporate governance within the KNTC and the banking sector's role in facilitating such a large-scale scam.