CORD points at anomalies, mischief in Eurobond ‘expenditure’

CORD points at anomalies, mischief in Eurobond ‘expenditure’

The Coalition for Reforms and Democracy (CORD) has expressed dissatisfaction with the response by the National Treasury over the Eurobond issue.

In the statement to newsrooms, CORD leader Raila Odinga said that the documents detailing how the Eurobond was used reinforced their concern that the entire transaction was a huge scam.

“We demonstrated in our letter to the National Treasury that the only way the government has been able to accommodate all the Ksh250 billion Eurobond in its budget accounts is by understating domestic borrowing for FY 2014/15 by Ksh140 billion; from Ksh250 billion to Ksh110 billion,” said Odinga.

“In Item 18 of the statement, the National Treasury reproduces the same entries from the budget outturn that we used to demonstrate this, but omits the understatement of domestic borrowing,” added the CORD leader.

Odinga said the Treasury’s account of how the more than Ksh 250 billion shilling Eurobond cash was used still does not add up noting that the documents released by CS Rotich have revealed that Sh140 billion from Eurobond proceeds are still unaccounted for.

In a statement, the former Prime Minister termed CS Rotich’s data as mischievous saying he should also release documentation for domestic revenue for government’s accounts to balance.

Odinga claimed the documents show all externally funded development expenses amounting to Ksh247 billion were accounted for without the Eurobond, saying it only paid for external debts totaling Ksh75 billion.

ODM party leader wondered how the Treasury funded projects using the foreign monies yet it does not have ready records to back their claims calling for a thorough audit into the expenditure.

“The National Treasury reports that the National Government FY 2014/15 development expenditure was Ksh508 billion, made up of Ksh266 billion domestically financed and Ksh240 billion foreign-financed expenditure,” read the statement in part.

“The only item that the Eurobond proceeds financed in FY 2014/15 as per the National Treasury’s financial report is external debt amortization (repayment of principal) to the tune of Ksh75 billion. This and the Ksh35 billion the National Treasury records as spent in FY 2013/14 totals Ksh 110 billion, leaving Ksh140 billion unaccounted for.”

CORD now wants the National Treasury to explain these glaring accounting anomalies.

CORD also wants value for the money audit immediately be instituted to look into the expenditures and projects funded ministry by ministry in which case, with each ministry explaining how the money was spent and show the projects the money was spent on.