Rotich doctored bond accounts, Raila now says

Coalition for Reform and Democracy (Cord) leader Raila Odinga on Friday said the National Treasury doctored accounts to hide the loss of Eurobond money.

In a statement, Mr Odinga said Treasury Cabinet Secretary Henry Rotich was hoodwinking the public by understating domestic borrowing by Sh140 billion.

He said in the Budget Review and Outlook Paper for the 2014/2015 financial year, development expenditure was Sh508 billion.

This was financed by Sh266 billion raised domestically and Sh240 billion foreign financing.

Mr Rotich had said Sh25 billion was used to fund development budgets in 2014 and Sh171 billion spent this year.

“No money was lost. We have told the ministries that received the money to put together details on how it was spent and this will be provided in a few weeks,” Mr Rotich told journalists at Treasury Building on Friday.

But Mr Odinga said the foreign financing component was raised from programme and project loans of Sh220 billion and external grants of Sh27 billion without the Eurobond proceeds.

“According to your report, the only project the Eurobond financed is the external debt amortisation to the tune of Sh75 billion. Without the understatement of domestic revenue, the government’s accounts will not balance,” Mr Odinga said.

He added that the Sh75 billion spent in this financial year and Sh35 billion for last year was the only amount from the Eurobond proceeds, leaving Sh140 billion unaccounted for.

Mr Rotich gave ministries three weeks to provide details of the spending.

It is not clear how they will pinpoint specific projects since ministries receive money in lumpsum.

For instance, out of the Sh270 billion appropriated for the development vote this year, Sh36 billion came from partners, Sh63 billion from other government revenues while Sh171 billion came from Eurobond proceeds.

MONEY DISTRIBUTION
However, Mr Odinga said project data was usually compiled before funding and that Mr Rotich could not say he did not have information about the programmes funded by the Eurobond money.

According to figures presented by Treasury, the Ministry of Transport got Sh14.9 billion, the Environment Sh3.8 billion, Energy Sh2.9 billion while Agriculture got Sh3.1 billion for 2013/2014 financial year.

In the 2014/2015 fiscal year the Lands Ministry got Sh9.1 billion, ICT Sh2.9 billion while Sports got Sh1.2 billion of the Eurobond money.

State Department for Planning under the Devolution Ministry received Sh44.5 billion while Education got Sh6.2 billion.

Department of Infrastructure received Sh49.3 billion, Science Department Sh8.9 billion while Department of Water and Regional Authority and Agriculture received Sh11 billion each.

Tourism Department received Sh2.6 billion.

Controller of Budget Agnes Odhiambo confirmed that Sh196.9 billion was moved from the sovereign bond account at Central Bank of Kenya to the exchequer account.

Meanwhile, Mr Odinga accused the government of raising taxes on basic goods “to recover the stolen Eurobond cash”.

“The price of mineral water has been increased by Sh10 a bottle. Similar taxes have been imposed on cigarettes, beer and soda to replace what was stolen,” he said in Bumala Township, Busia County.

Mr Odinga accused Mr Rotich of disrespect.

He said a leader of his stature could not be invited to a CS’ office. “I will continue exposing people who fleece the public,” he said.

Mr Odinga questioned the source of former Devolution CS Anne Waiguru’s wealth. “How can a civil servant like her buy a Sh150 million house?”

He was accompanied by Governor Sospeter (Busia), Deputy Governor Kizito Wangalwa (Busia), Kasipul Kabondo MP Sylvanus Osele, Matayos MP Geoffrey Odanga and Woman Rep Florence Mutua.