Duale refutes Raila’s claims on Eurobond divertion

Majority Leader in the National Assembly Aden Duale has dismissed Cord leader Raila Odinga’s allegations that the government diverted funds from the Eurobond to personal accounts.

Duale asserted that Odinga’s claims that the money is stashed in foreign accounts and is being used to trade in foreign stocks for private gains are misguided and unfortunate.

He stated that contrary to the allegations, the government’s handling of the Eurobond has been commendable and transparent.

Speaking in Garissa Town, Duale said the fundamental objective of going for the Eurobond was to prevent the government from competing with the private sector in domestic borrowing, adding that they have looked elsewhere to source for more than Sh283billion.

He said that USD600 million was used to offset the loan that the Kibaki administration borrowed from local banks, with a further Sh53 billion going towards settling other loans.

He added that the remaining amount was not stashed in foreign accounts, as alleged by Raila, but put in the Central Bank of Kenya.

The Garissa Town MP called on the CORD leader to request to be issued with the relevant documents by Parliament for a better understanding of how the funds were used.

Duale told Odinga to respect President Uhuru Kenyatta and his Deputy William Ruto as the democratically elected leaders.

In his speech last week, Raila claimed that the Jubilee Government is trading the Eurobond to steal public funds that have been hidden in foreign accounts.

Odinga asked the government to come clean about the maintenance of foreign accounts to keep Eurobond funds.

Odinga had earlier accused the Jubilee Government of putting the country in a financial crisis by spending more than it could afford, borrowing too much and corruption.

He said the opposition stands ready to support measures that will put Kenya where it belongs and restore the economy.

“Jubilee is over borrowing, over spending and over stealing”, he quipped.

He further accused the Jubilee Administration of living beyond its means, adding that Kenya’s economy is underperforming.

“The truth is that our economy is underperforming while other nations in the continent are growing,” said Odinga.

He noted that Treasury Cabinet Secretary Henry Rotich had recently acknowledged that the country was facing a cash crunch.

“Jubilee told people that the economy was doing well yet we have increased debt and borrowing to five times more than when the grand coalition was in power,” stated Odinga.

He added that the market value has shrunk and foreign debt has overtaken domestic debt.

“We now spend 110 per cent, up from 4 per cent, to service foreign debt,” said Odinga.

“The government now wants to borrow outside so local banks can be serviced. Interest rates are at their highest and nobody is talking about the Eurobond. You would be a fool to borrow at those rates,” stated the Cord leader.

Odinga said that President Uhuru Kenyatta should provide Kenyans with a credible system to ensure their bank savings remain safe.

By Amos Sambu