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{
"id": 683799,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/683799/?format=api",
"text_counter": 191,
"type": "speech",
"speaker_name": "Hon. (Eng.) Gumbo",
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"speaker": {
"id": 24,
"legal_name": "Nicholas Gumbo",
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"content": "(e) The fifth issue is on the Eurobond. The Auditor-General reported that net proceeds from the Sovereign Bond of US$1,999,052,872.97 out of the total amount of US$2 billion were received on 24th June 2014 and deposited into an offshore account contrary to Article 206 of the Constitution of Kenya and Section 17(2) of the Public Finance Management Act, 2012. The law requires that all the 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 without the authority of the Controller of Budget and also being applied for other purposes other than those for which the Sovereign Bond and other debt instruments were floated. Out of the balance of the offshore account of US$1,999,052,872.97 as of 2nd July, 2014, an amount of US$395,439,262.50, equivalent at the time to Kshs34,648,388,180.25, was on 3rd July 2014 transferred to the Exchequer to fund infrastructure projects and was accounted for under the 2013/2014 Financial Year. On 3rd July 2014, another amount of US$604,560,737.50 was withdrawn from the offshore account to fund the repayment of the syndicated loan, but was recorded in the books of 2014/2015 Financial Year. Authority of the Controller of Budget to incur expenditure was however not obtained. The statement of receipts into and issues from the Exchequer accounts for the 2013/2014 Financial Year, therefore, reflects only actual receipts from the commercial loan of Kshs34,648,388,180.25 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 US$1,999,052,872.97, equivalent at the time to Kshs173,917,599,948.39, into the Consolidated Fund during the year. The Committee held sessions with the CS for the National Treasury, the Controller of Budget and the Auditor-General to shed light on the matter. This has now become a controversial public issue in the country. Due to the overwhelming public interest in the matter, the Committee instructed the Auditor-General vide a letter written in early December last year, to conduct a special audit on the Eurobond. This report is still awaited and we are hoping it will soon be tabled in this House. The Auditor-General has indicated that the report will be presented to Parliament any time soon. The Committee will embark on examination of the same as soon as it is received. (f) The sixth issue is on pending bills. During the year ended 30th June 21014, a number of MDAs did not settle bills amounting to Kshs16,638,164,142, comprising of Kshs9,748,225,546 and Kshs2,685,969,026 under the Recurrent and Development Votes respectively and a further Kshs4,203,969,660 not classified, but were instead carried forward to the 2014/2015 Financial Year."
}