Devani to pay banks’ billions

The man at the centre of Sh7.6 billion Triton oil scandal has agreed to pay local banks.

Runaway businessman Yagnesh Devani entered into an agreement to pay Kenya Commercial Bank Sh2 billion and PTA Bank Sh780 million.

The agreement, dated March 16, will see a warrant of arrest issued for Mr Devani’s arrest and court cases withdrawn.

It would also see KCB lift a receivership over the businessman’s property.

However, this would only happen if Mr Devani meets part of his bargain.

The receivership of property of the businessman will be lifted as soon as Mr Devani pays his lenders as provided for in the agreement and the banks deem it fit to do so.

The agreement states: “KCB and the receivers will write to the police and/or the Attorney General withdrawing their respective criminal complaints against Yagnesh Devani and any other party and request that the criminal proceedings be formally withdrawn.”

Triton is expected to pay Sh100 million to the banks within 21 days of the agreement, while the remainder will be paid in six months.

The deed of settlement was drawn by Walker Kontos Advocates and is signed by Mr Devani through a lawyer in India and the banks’ advocates.

The agreement adds: “Triton is indebted to KCB in the principal sum of Sh2,022,184,810 outstanding as at December 16, 2008.”

“Triton and the guarantors hereby jointly and severally acknowledge and accept the KCB and PTA debt as demanded as being outstanding debt due to KCB and to PTA respectively,” it adds.

The KCB debt arose from a guarantee the bank gave to the oil company to the tune of Sh900 million, a Sh145 million overdraft and Sh950 million in invoice discounting.

The bank took over assets of the company when it failed to pay the money.

PTA also took similar measures.