Beruflich Dokumente
Kultur Dokumente
Dr Kamau THugge
Principal Secretary National Treasury
Nairobi
Please look at the attached spreadsheet which is crafted from both the AUDITOR GENERAL'S REPORT
2013/14 and BUDGET IMPLEMENTATION REVIEW REPORT 2014/2015 in respect of accounting for
the proceeds of the Euro Bond. The following emerges.
1. Total amount of sovereign bond is stated as $2,000,000,000.00
2.
3.
4.
$395,439,262.50
infrastructure.
5.
This amount is accounted for in the WRONG FISCAL PERIOD namely in FY2013/14 instead of the
year when it was received and due to be accounted for as an exchequer receipt.
6.
obtained.
9.
Curiously if you add what was spent on repaying the syndicated loan and the amount that was
transferred to the exchequer to fund infrastructure, you arrive at a neat figure of
EXACTLY
uso 1,ooo,ooo,000.00.
10. The above two reported uses of the proceeds of the euro bond receipts leave a balance of
C)
, is what is feeding
GAP
Equivalent to
in
the
audited
2. -
you still
D 15-, _,
accounts
for
financial
. -
Year
2013/14
of
.25,
It's clear from these figures that purported exchange Losses are so small and do not
justify blat ant breach of the Constitution as has happened in this case.
c.
d.
e.
3.
4. Some of the big questions you must be prepared to be confronted with by Parliamentary
Committee are the following
a. First you need to clearly explain the phenomena of
to address the
widely held perception that these are no different from Slush Funds maintained by the
Governing Elite to siphon off public monies through circumventing the laid down
Constitutional provisions of Article 206(1)(A).
b. Secondly, you need t o st ate clea rly t he specific PUBLIC FUND where the Eurobond
money was deposited and whether that PUBLIC FUND was created by an Act Of
c.
2.6.6.
Failure
to
transfer
proceed
s from
the
Sovereig
n Bond
to the
National
Exchequ
er
Account
Available information indicates that net proceeds from the Sovereign Bond of USO
1,999,052,872.97 out of the total amount of USO 2,000,000,000 .00 were received on 24
June 2014 and deposited into an offshore account, contrary to Article 206 of the
Constitution of Kenya and Section 17(2) of Public Finance and Management Act, 2012
which requires that all money raised or received by or on behalf of the National
Government be paid into the Consolidated Fund . There is the risk of proceeds being
appropriated with
Out of the balance in the offshore account of USO 1,999,052,872 .97 as at 2 July 2014 an
amount of USO 395,439,262.50 (Kshs.34,648,388,180.25) was on 3 July 2014 transferred to
the Exchequer to fund infrastructure projects and was accounted for in 2013/2014 financial
year. On the same date of 3 July 2014 another amount of USO 604,560,737.50
(Kshs.53,201,344,900.00) was withdrawn from the offshore account to fund the repayment
of the syndicate loan but was recorded in 2014/2015 financial year books. Authorit
The Statement of Receipts into and Issues from the Exchequer
Account for 2013/2014 therefore reflects only actual receipts
from commercial loan of Kshs.34,648,388,180.25 out of the net
proceeds from the Sovereign Bond as a result of failure to pay
the full amount of the net proceeds from the Sovereign Bond of
USO 1,999,052,872.97 (Kshs.173,917,599,948 .39) into the
Consolidated Fund during the year.
I have however, not qualified my audit
opinion on the Exchequer Account for
the year ended 30 June 2014 on the
basis of this matter due to the fact that
the balance of actual net proceeds
from the Sovereign Bond is correctly
reflected in the Off-Shore Account and
in the Central Bank of Kenya Special
Account.