Kenyan Treasury Says Eurobond Fraud Claims False, Misleading

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Kenya’s Treasury reiterated that proceeds from the nation’s debut Eurobond sale in 2014 hadn’t been stolen, as alleged by the nation’s main opposition leader.

The Auditor-General is carrying out a special probe into government ministries, departments and agencies, the Treasury said in a statement posted on its website. Former Prime Minister Raila Odinga demanded on Thursday the resignation of Treasury Secretary Henry Rotich and other officials and called for an independent forensic audit to trace where $999 million of the $2.82 billion of Eurobonds sold was deposited.

“Anybody who is sensible and well intentioned will be able to see that the claims that are now being made by the Former Prime Minister Hon. Raila Odinga are absolutely false and misleading,” the Treasury said.

The $999 million went into boosting the nation’s foreign-exchange reserves in the Federal Reserve Bank in New York, while its equivalent in Kenya shillings was deposited into a sovereign bond account at the central bank, according to the statement.

The transfers were conducted by JP Morgan Chase & Co. and Citigroup Inc., the Treasury said.

Odinga, leader of the Coalition for Reforms and Democracy party, also named 10 “persons of interest,” including central bank Chairman Mohammed Nyaoga, whom he said were involved in the saga. The central bank said allegations of misappropriation of Eurobond funds by its officials were false.

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