Devani in new Sh1.6bn theft case

The state on Tuesday dropped the Sh2.4 billion theft case against oil tycoon Yagnesh Devani and immediately charged him afresh with stealing and conspiracy.

In the new case, Mr Devani is accused with seven others of charges varying from stealing, fraudulent disposition of mortgaged goods and conspiracy to defraud.

Abuse of office

However, Mr Devani was not present in court and chief magistrate Gilbert Mutembei had to issue summons requiring him to appear in court to take plea.

The withdrawal of the previous case against the trader means the warrant of his arrest which was in place also lapses.

The amount involved in the new theft case against Mr Devani is Sh1.6 billion.

Mr Devani, Mr Julius Kilonzo, Mahendra Pathak and Benedict Mutua are said to have stolen some 318,656 metric tonnes of Jet fuel valued at $365,974.05, an equivalent of Sh29.3 million belonging to the Kenya Commercial Bank. The incident occurred at Kipevu Oil Storage facility in Mombasa between April 23 and December 4, 2008.

The tycoon faced another charge of stealing 2,000 metric tonnes of automotive gas oil worth $215,934 or Sh17.3 million.

According to the prosecution, Mr Devani also stole jointly with others not before the court 418,134 metric tonnes of motor spirit premium valued at $438,031, an equivalent of Sh35 million.

On another count the businessman who has been on the run is accused of stealing $12,241,873.90 (Sh976 million) belonging to KCB.

He committed the crime with Mr William Mundia, Collins Otieno, Mahendra Pathak, Julius Kilonzo, Job Kangogo, Samson Waka, Patrick Ngare, Peter Muthungu and Triton Petroleum between July 31 and August 1, 2008 at KCB Moi Avenue Branch.

Mr Mutua who is chief technician at Kenya Pipeline Company faced additional charges of abuse of office, neglect of official duty and false accounting.

The magistrate gave the suspects Sh1 million cash bail each.

The case will be mentioned on July 16.