- They later changed the stand and stated it should be turned into ethanol.
- The agency had earlier stated the cargo should be destroyed by burning or burying it in an exercise that would be supervised by experts.
Image: FILE
Kebs Managing Director Bernard Njiraini is among top officials who were, Tuesday, grilled by police over the sale of condemned sugar worth more than Sh163 million.
Njiraini and a number of managers including scientists based at Kenya Bureau of Standards were summoned to the Directorate of Criminal Investigations, who are conducting the probe in which condemned sugar was released to a trader who later repackaged and sold it to unsuspecting Kenyans.
Director of DCI Mohamed Amin said the grilled individuals were released on police bond pending further probe and action.
“The probe is ongoing for us to get to the bottom of this matter. They are all out on bond pending further action,” he said.
Detectives wanted to understand why Kebs officials changed their earlier stand on the cargo to allow it to the market.
The agency had earlier stated the cargo should be destroyed by burning or burying it in an exercise that would be supervised by experts.
They later changed the stand and stated it should be converted into ethanol.
The process of turning the product into ethanol can only be done at four agencies, which include Kenya Wines Agency and Agro-Chemical and Food Company Limited (ACFC).
Police said there is a gazette notice that elaborates on how such a product should be released to the agencies for conversion.
However, the agencies mandated to handle the sugar did not follow the procedures, police said, adding no taxes were paid to the government.
Those arrested and grilled said they were ordered to release the sugar and have it transported to Thika via SGR where it was to be repurposed.
This followed an opinion from the office of the Attorney General.
After Kenya Revenue Authority got a request from Kebs to have the cargo turned into ethanol, the taxman wrote to the AG seeking their opinion on the same.
The AG explained the steps to be followed to convert the cargo to ethanol, which was apparently not followed in the latest developments.
Police recovered 14 out of 20,000 bags of the original sugar condemned as unfit for human consumption.
Some staff from KRA were on May 16, grilled by the police handling the matter.
They argued that the security seals to the containers carrying the cargo were removed without their consent.
At least eight suspects who had been arrested over the sale of condemned sugar were released on police bond pending further probe.
The suspects included businessmen and a senior KRA deputy commissioner.
This came as it emerged that one Faith Kiara a commissioner for intelligence, strategic operations, investigations and enforcement ordered the release of the sugar.
In a letter dated April 28, 2023, to Vinepark Limited, the official said the consignment was detained to pave the way for further investigations and it had been found that the consignment was purchased via private treaty at a value of Sh1,000 per 50kg bag.
“We also note that your company was not the original owner of the consignment, and as such, the sales value inclusive of taxes was payable, a letter signed by Kiara reads in part.
“We have further noted a demand letter was issued by Customs & Border Control department but there is no evidence of settlement of the same. Pursuant to the provisions of section 135 of EACCMA, kindly proceed to make the settlement within 30 days. In this regard, the detained consignment is hereby released to you."
This was in response to the consignment, which was detained at Kings Commodities Limited warehouses located at Makongeni, Thika- along the Thika-Garissa Highway.
However, no taxes were paid and this is part of the contention the investigators are looking into.