Mudavadi dismisses Eurobond inquiry at Treasury

Amani National Congress leader Musalia Mudavadi. Mr Mudavadi has dismissed investigations into the use of proceeds from the Eurobond saying Ethics and Anti-Corruption Commission and Directorate of Criminal Investigation inquiries will unearth nothing. PHOTO | ROBERT NGUGI | NATION MEDIA GROUP

What you need to know:

  • Only a special audit would reveal how the billions of shillings were used, said Mr Mudavadi.

  • The Amani National Congress party leader described the way the National Treasury handled the Eurobond funds as “fraudulent”.

Amani National Congress party leader Musalia Mudavadi has dismissed investigations into the use of proceeds from the Eurobond.

He said the investigations by the Directorate of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC) would not unearth the truth behind the use of Sh250 billion.

Only a special audit would reveal how the billions of shillings were used, he said.

Mr Mudavadi was speaking at Friends Church in Kariobangi, Nairobi, on Sunday.

“Interventions by DCI and EACC will not unravel the corruption but act as a cover-up. The right office to investigate the illegal dealings is the Auditor-General who should carry out a special audit,” said the former Finance minister.

He described the way the National Treasury handled the Eurobond funds as “fraudulent”.

Mr Mudavadi said: “The Jubilee administration should tell Kenyans how the money was used without covering up. The National Treasury broke procedures of borrowing and handling of the money.”

“As a former Finance minister, I can tell you proceeds from external borrowing are regulated by strict procedures. Treasury undermined all of them in what appears to be deliberate obfuscation to circumvent accountability. All monies must be deposited in the consolidated fund first before any disbursement. The alleged offshore payments were irregular,” he said.

The government  is under pressure to explain how  proceeds from the Sh179 billion ($2 billion) and the tap sale of $750,000 (Sh66 billion by last year’s exchange rate) were used.