Cord ‘takes steps’ to force US central bank to release Eurobond details

The opposition Coalition of Reforms and Democracy (Cord) says it has taken steps to compel the Federal Reserve Bank of New York to release details on the movement of $999 million Eurobond proceeds deposited in its accounts.

Cord leader Raila Odinga, without disclosing details, said the measures would ensure full disclosure by the US central banker.

“We expect the steps we have embarked on will compel the Federal Reserve Bank of New York to give a full account of where the Eurobond proceeds went after they were deposited in that account,” Mr Odinga said Thursday.

“It is our expectation that the bank will come out clearly and demonstrate that it was not a party to what is clearly an elaborate money laundering scheme by producing bank statements detailing movements of the Eurobond proceeds.”

Cord has previously claimed that the money that was moved from JPMorgan Chase Bank branch in New York to the Federal bank in September 2014 cannot be accounted for. But Treasury said that the money was deposited in a Central Bank of Kenya (CBK) account in the New York Federal bank with the CBK simultaneously crediting a government account in Nairobi with Sh88.5 billion.

Mr Odinga also dismissed explanatory statements provided by the Treasury and the CBK , saying that they are mere spreadsheets and write-ups and not bank statements.

He demanded that CBK produce statements showing receipt of the money in Nairobi.

“The CBK knows that money transfer, receipt and instructions for such transactions are accompanied by Swift Code transfer forms including MT103, MT 202 and MT 502. These forms are missing in all the claims that have been putting out.”