Raila warns Kenyans of yet another “government scandal”

Cord leader Raila Odinga has raised a red flag to investors and Kenyans of yet another Eurobond issue by the government.

In a warning statement on Sunday, Raila said the Jubilee Government had proposed to issue the bond to be listed on the Irish Stock Exchange by last Friday.

Raila cautioned transaction advisers and potential foreign investors against participating in the second Eurobond issue in as many years as he revived allegations that almost $1 billion from a sale of the securities in 2014 is still unaccounted for.

Whistleblower

Raila was the first to blow the whistle on the first sale when he alleged that some of the proceeds from the sale of $2.82 billion of Eurobonds two years ago were misappropriated.

However, the Central Bank of Kenya and the Treasury insisted that the money was received and spent on various projects.

Their sentiments were echoed and supported by the International Monetary Fund (IMF) who in May this year, said Kenya had accounted for the $2.8 billion (Sh280 billion) Eurobond money in the same manner that other countries do.

Raila Odinga in January this year after he pointed out an accusing finger at the government over the Eurobond. (Photo: Nation Media Group)

According to Raila, the government and more specifically the National Treasury failed to deposit Net Proceeds of the Eurobond amounting to US$1,999,052,872.97 (KSh.173,917,599,948.39) into the Consolidated Fund as required by law.

“Of greater concern and more troubling is that the Government of Kenya has to date failed to deposit or remit Net Eurobond proceeds amounting to USD 999,018,457.60 into the Consolidated Fund (“National Exchequer Account”) maintained at the Central Bank of Kenya,” reads the statement.

Kenyans to pay

Raila further that the country Kenya is at risk of sovereign default and in the event of harsh and painful Sovereign Debt Restructuring, Kenyan taxpayers face the risk of paying for the tough fiscal conditions that are likely to be imposed by private creditors and investors who subscribed to the 2014 Eurobond.

The government is yet to fully respond to these latest claims by the Cord leader who is known to have raised red flags on scandals he alleges the government has been involved in; the recent being the Northern Water Collector Tunnel project on Murang’a County.