Businessman Yagnesh Devani will be held at Kilimani police station for one day after a Nairobi court allowed the prosecution to detain him ahead of being charged afresh over the 2008 oil scandal.
Mr Devani was arrested on Tuesday August 6 at his offices and taken to Milimani law court where the prosecution asked the court for more time to present the new charges against the oil tycoon.
Chief magistrate Thomas Nzioki directed Mr Devani to be held at Kilimani police station until today (Wednesday) when he will be charged with the oil scam in which he is alleged to have fraudulently sold mortgaged petroleum.
The magistrate rejected an application by defence lawyer Hilary Kiplagat for the release of Mr Devani on bond.
But the prosecution said the oil tycoon was brought to court on a warrant of arrest.
In the scandal, Mr Devani’s firm, Triton Petroleum Company Limited, is accused of releasing thousands of tonnes of petroleum, which had been mortgaged, without the consent of mortgage owners.
The prosecution intends to bring 11 counts including fraudulent disposition of mortgaged goods, conspiracy to defraud and obtaining money by pretences, against Mr Devani.
Triton is accused of disposing of 675.592 cubic metres of petroleum valued at Sh71 million ($550,020) to Total Kenya Limited without the consent of Emirates National Oil Company.
Another counts stated that with intent to defraud Emirates National Oil Company (Singapore) Limited, Triton disposed of 13,054.850 cubic meters valued at $10,446,888.36 (approximately Sh1.3 billion) and Sh32 million of the said fuel to Total Kenya Limited without the consent of the Singaporean firm, who was the mortgagee.
The charge sheet stated that he committed the offence on September 5, 2008, in Nairobi being the director of Triton, an allegation he committed with others before who have already been charged.
The arrest comes after the Director of Public Prosecutions (DPP) Renson Ingonga made an application in court to separate Mr Devani’s case from that of other accused persons, who have been on trial for the past decade.
The DPP through senior principal prosecution counsel Eliphas Ombati said section 87(a) of the criminal procedure code provides for withdrawal by the prosecution at any stage before a judgment is made.
Mr Ombati said Mr Devani did not plead to the charges alongside his co-accused and 24 witnesses have testified in his absence.
“CR. No 1151 of 2009 is at an advanced stage and its pending mention for filing of submissions by parties on case to answer,” Mr Ombati said.
The prosecutor said no prejudice will be occasioned to the other accused persons or even Mr Devani and his firm if the matter is withdrawn.
Mr Devani was charged on January 23, 2024, after being on the run for more than a decade and was freed after depositing Sh1 million cash bail in court.