Raila wants 10 quizzed on Eurobond affair

What you need to know:

  • Raila demanded the resignation of National Treasury Cabinet Secretary Henry Rotich, Principal Secretary Kamau Thugge and Chief Accountant Bernard Muiruri Ndung’u, allegedly for covering up the Eurobond scandal.
  • In all, he named 10 top officials of the Treasury and the Central Bank of Kenya as “persons of interest” but two immediately warned that they would sue him over his allegations.
  • He alleged that the officials received instructions to hide the theft of Eurobond billions through money laundering by a network of top Jubilee officials working together with intermediaries in London, New York, South Africa and Qatar.
  • Mr Odinga has narrowed down on Sh87 billion, which he said was banked at the Federal Reserve Bank of New York and he is demanding an explanation from the bank and from the lead transaction advisors, JP Morgan Chase Bank, South Africa branch, on how that money was moved and spent.

Opposition leader Raila Odinga is pointing an accusing finger at the leadership of the Jubilee administration as the shadowy hand behind what he dramatically described as the “grand robbery of Kenya”.

He demanded the resignation of National Treasury Cabinet Secretary Henry Rotich, Principal Secretary Kamau Thugge and Chief Accountant Bernard Muiruri Ndung’u, allegedly for covering up the Eurobond scandal.

In all, he named 10 top officials of the Treasury and the Central Bank of Kenya as “persons of interest” but two immediately warned that they would sue him over his allegations.

“The scheme (alleged theft of Eurobond billions) is so elaborate, so thick and so reckless that we believe these officers acted for or on instructions from bosses higher up the Executive ladder,” claimed Mr Odinga.

'MONEY LAUNDERING'

He alleged that the officials received instructions to hide the theft of Eurobond billions through money laundering by a network of top Jubilee officials working together with intermediaries in London, New York, South Africa and Qatar.

Mr Odinga has narrowed down on Sh87 billion, which he said was banked at the Federal Reserve Bank of New York and he is demanding an explanation from the bank and from the lead transaction advisors, JP Morgan Chase Bank, South Africa branch, on how that money was moved and spent.

Though he made his case with passion, there was no direct evidence of theft but questions about how and when money was moved between banks.

LEGAL BATTLES

On Thursday, some of the officials denied his allegations and threatened to sue him for making “outrageous claims”.

Central Bank of Kenya chairman Mohammed Nyaoga was furious, threatening to sue Mr Odinga.

He said that he should not be confused with Mr Gerald Nyaoma, who negotiated the Eurobond with the CBK.

“The allegations constitute reckless impunity and is a serious affront on my character and I will be taking action so that I can vindicate my character,” said Mr Nyaoga.

“I have built my profession for over 31 years, so how can somebody with a microphone wash it away in five minutes? I would expect a leader of the stature of the former Prime Minister would interrogate the facts before giving them out.”

The President’s Chief of Staff and Head of the Civil Service, Mr Joseph Kinyua also criticised Mr Odinga in a statement sent to the Nation by his lawyer, Mr Ken Ogetto.

He denied “in the strongest terms possible”, that he was aware of an alleged scandal involving the Eurobond money.

“Hon Raila’s attempt to link Mr Kinyua to this imaginary scandal is the product of a malicious and reckless political witch-hunt, which will not pass unchallenged,” said Mr Ogetto.

He also demanded that Mr Odinga retract the “baseless and unwarranted allegations”, failure to which he would institute legal action against the Cord leader.

Central Bank later issued a statement defending its staff against accusations of wrongdoing.

“The allegations that CBK officials were involved in any misappropriation of these funds have no basis.

Mr Mohamed Nyaoga was appointed as chairman of the CBK Board on June 19, 2015 and had no access to or participation in the Eurobond matter,” said the statement.

The bank said it had provided all evidence regarding the receipt and disbursement of the funds and termed Mr Odinga’s allegation against its staff as “erroneous”.

Former CBK Governor Njuguna Ndung’u, who was also named as a person of interest, warned of a “big battle”.

“I am no longer the Central Bank of Kenya Governor. In fact, do not publish things that are not factual. This is going to be a big battle,” he said.

EACC REPORT

On Thursday, the Ethics and Anti-Corruption Commission released a report, which concluded that there was no evidence of wrongdoing.

EACC said it had reached that conclusion after its investigation, interviewing more than 50 officials in the Treasury and CBK.

Earlier in the day, Mr Odinga threatened that if no action was taken, he would reveal the names of people he claimed to be the beneficiaries.

“We are convinced that we are in the middle of a great con game, treachery and thievery by the agents of the Kenyan State working in cahoots with international actors.

We are, therefore, making demands to prevent a repeat and ensure the criminals are apprehended and punished,” he said during his press conference at the Serena Hotel in Nairobi.

“In the Eurobond saga, we are staring at theft of public resources on a scale never seen before in our country. The size and scale of money at stake at USD1 billion dwarfs all previous scandals in Kenya,” he said.

Mr Odinga claimed the Treasury and the CBK misled Kenyans on the whereabouts of the Eurobond billions.

Among the people he named as persons of interest are Mr Kinyua, National Treasury CS Henry Rotich, Dr Thugge, Mr Ndung’u, Prof Ndung’u, Mr Nyaoga, and CBK’s Financial Market’s director, Mr John Birech.

Others are CBK’s Financial Markets manager Moses Muthui, Controller of Budget Agnes Odhiambo and Mr Julius Kilinda of the National Treasury’s Accounting Unit.

DEMANDED RESIGNATIONS

The ODM leader said Mr Rotich, Dr Thugge and Mr Ndung’u should resign and be prosecuted for devising a plan to cover up the loss of public funds.

He also accused them of failing to deposit “immediately and in full” the Eurobond proceeds in the Consolidated Fund and failing to seek the approval of Mrs Odhiambo before withdrawals.

“They should resign immediately and be arraigned in court for deliberately misleading the (National Assembly’s) Public Accounts Committee and taxpayers that the Eurobond proceeds were paid in full into the Consolidated Fund,” he said.

But Dr Thugge said no money was lost and hoped that when Auditor General Edward Ouko presents the 2014/2015 report ,the truth will come out.

“We have explained many times. The Controller of Budget has confirmed that all the money came to the CBK except payment to the syndicated loan.

The Auditor General confirmed the bank statements of the money in JP Morgan and Citi. I believe when the Auditor General comes up with last year’s report, he will reach the same conclusion that all the money went to CBK.”

Additional reporting by Otiato Guguyu