Tobiko clears Treasury officials of Eurobond fraud claims

Treasury officials were Tuesday handed a reprieve after the State prosecutor ruled it has no evidence linking them to theft of funds from the Sh250 billion Eurobond.

Director of Public Prosecutions (DPP) Keriako Tobiko accepted the recommendation of two investigative bodies to bring the inquiry to a closure and asked the Auditor-General to conduct a special audit on the development projects funded by the Eurobond cash.

The investigation started in December 1 after the DPP instructed the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) to inquiry into the Opposition’s claims that the government could not account for the money.

“Upon independent review of the evidence gathered in the inquiry file and the resubmitted file, I have found no evidence to support the allegations about the alleged misappropriation of Sh250 billion or any part thereof,” Mr Tobiko said.

“Further, I have found no evidence disclosing any criminality on the part of any government officials. In the premises and as matters stand now, there is no evidence upon which a prosecution may ensue.”

Kenya tapped international markets for the first time in June 2014, with investors snapping up its debut five- and 10-year debt.

The Sh250 billion was raised in two tranches and spent in the financial year 2013/2014 and 2014/2015.

Opposition leader Raila Odinga reckoned that the government could not account for Sh10 billion of the Eurobond proceeds.

READ: Raila now takes the Eurobond battle to top American banks

Mr Odinga has claimed that a good amount of the money never actually reached Kenya and was diverted into people’s pockets, and did not finance any public projects locally.

The Eurobond proceeds were spent in the fiscal years 2013/14 and 2014/15.

The International Monetary Fund, the Central Bank of Kenya and the Controller of Budget have all previously backed Treasury on the Eurobond cash saying that it had accounted for the money.