CORD leader Raila Odinga has once again come out to blow the whistle over the use of contentious Eurobond by the Treasury after claims that Sh140 Billion could not be accounted for.
In June 2014, the Government approached the International market to try and raise Sh150 Billion needed to fund various projects.
The Government later received higher bids than it needed and ended up getting Sh200 Billion as a loan, which would be paid with a 6.6% interest per annum.
This money was broken down into two sections; a five-year Sh50 Billion bond which would be paid at an interest rate of 5.88% per annum and a further Sh150 Billion bond attracting a 6.88% per annum interest to be paid in 10 years.
At the end of 2014, the Government reportedly borrowed another Sh75 Billion bringing the total amout that it owed the Eurobond to Sh275 Billion.
According to Treasury, Sh60 Billion was used to service a loan that the Ministry had secured from some banks, while Sh196.9 Billion was used for infrastructural projects.
This money was spread across different state departments including Department of Infrastructure which received Sh64 Billion while Ministry of Energy and Petroleum got Sh21 Billion.
Sh15 Billion was pumped into the Water and Irrigation department, Department of Planning was given Sh44 Billion whereas that of Agriculture received Sh14 Billion. The rest was apparently used to support 2014/2015 budget.
However, Treasury Cabinet Secretary Henry Rotich has been put on the spot by the Opposition to give specifics of the projects that were funded by the money.
This prompted Director of Public Prosecutions to order for investigations into the bond in the next 10 days.
