Eurobond debators accuse gov’t of withholding Eurobond details

Private sector players, students and members of the public who attended a debate on the controversial Eurobond issue held on Thursday evening at the University of Nairobi have faulted the government for failing to release crucial information on the 250 billion shillings Eurobond kitty.

In a move aimed at demystifying the matter, the Kenya Private Sector Alliance organized a platform at the University of Nairobi that saw top government officials and economists engage in a debate to shed more light than heat.

Here, the unanswered questions and concerns on the Eurobond issue were raised once more and according to participants, there was a failure to genuinely and convincingly inform the public about the processes, terms and even parties that were involved in the Eurobond transaction.

Even though the panelists unanimously ruled out the possibility of Eurobond proceeds having been stolen, it was evident that a clear breakdown of how the funds were utilized has not been provided.

One student faulted the government for failing to address the Eurobond queries straight head-on.

Treasury Permanent Secretary Dr. Kamau Thugge, who was present, however, was quick to assure participants and Kenyans in general that no cash raised through the Eurobond issue has been stolen.

This came even as Central Bank of Kenya came out to dispute claims that the proceeds of the Eurobond floated in 2013 were lost after being held in foreign accounts.

In a statement published in the local dailies, the CBK said it opened a U.S. dollar account at JP Morgan Chase Bank, New York in June at the request of the Treasury to receive the initial proceeds of the Eurobond.

The Central Bank further said the account was subsequently closed in September 2014,  after 999 million US dollars – equivalent to 88.4 billion shilling was drawn down from the account and transferred to the government’s account.

In response to claims over illegal payments to foreign parties, the CBK has said it can, on behalf of the government, pay an external party using resources in the government’s foreign currency account.