Kenya’s most infamous oil scandal has ignited a stunning new legal firestorm.
Yagnesh Mohanlal Devani, the embattled businessman at the heart of the Sh7.6 billion Triton Petroleum debacle, has filed a bombshell civil suit against Kenya Commercial Bank (KCB) and the Central Bank of Kenya (CBK), demanding a comprehensive forensic accounting of every shilling handled during the company’s 17,year receivership.
In a dramatic reversal of fortunes, Devani once the hunted is now the one on the offensive.
Through his legal team, he is demanding a full and transparent reckoning of all assets, disposals, recoveries, and expenses incurred by the receiver managers appointed under KCB’s watch since Triton was placed under receivership in December 2008, at the request of KCB and the Eastern and Southern African Trade and Development Bank, citing Triton’s inability to pay loans.
The suit raises explosive questions: What happened to Triton’s assets during nearly two decades of receivership? Were creditors and shareholders given a fair account? Who benefited, and how much was recovered?
In his court papers, Devani claims that there are no comprehensive accounts that have been rendered to shareholders since the company was placed under receivership.
The application alleges that there has been no clear disclosure on how Triton Petroleum’s assets were managed, disposed of, or how much was recovered during the period.
Devani further claims that expenses incurred throughout the receivership have not been adequately explained.
The businessman is also raising concerns over the conduct of the lenders and the regulator.
He accuses the banks of failing to account for assets under their control, while the receivers are alleged to have breached their fiduciary and statutory obligations.
The Central Bank of Kenya (CBK) is cited in the proceedings for allegedly failing to intervene despite its supervisory role over the banking sector.
The High Court has certified the matter as urgent and directed the respondents to file their responses within seven days.
Earlier, KCB had sued Triton for Sh2 billion for oil imports secured through various debentures, while Devani himself was sued for allegedly stealing Sh2.7 billion from the bank.
But with criminal charges now largely crumbling,the Sh7.6 billion EACC case was withdrawn after key witnesses, including former Energy Minister Kiraitu Murungi, were unwilling to testify, Devani appears to be pivoting aggressively to the civil arena.
At the peak of the scandal, Triton’s financiers, including KCB, Fortis Bank of Netherlands, Glencore Energy UK, and Emirates National Oil Corporation of Singapore, were left with paperwork and empty coffers.
Now, Devani’s audacious move threatens to pry open the books and expose what actually happened behind closed doors.
The lawsuit is set to send shockwaves through Kenya’s banking and regulatory establishment.
A forensic audit by PricewaterhouseCoopers had previously found that KPC irregularly released fuel in breach of the Collateral Financing Agreement,yet no full public accounting of the receivership period has ever been rendered.
Legal experts say the case could become the most consequential chapter yet in a saga that has defined corporate fraud in East Africa for nearly two decades.
If the court compels KCB and CBK to open their receivership books, it could expose uncomfortable truths long buried under legal proceedings.
The Triton saga, it seems, is far from over.
