Consolidated Fund
Controller of Budget
JP Morgan Chase Bank
Kenya
National Assembly
National Exchequer
New York
Office of the Auditor General
PKF Kenya
Treasury

Sh250b Eurobond is ‘clean’, says audit

An independent auditor appointed to conduct a special audit on the receipt and disbursement of the Sh250 billion Eurobond proceeds has given it a clean bill of health.

PKF Kenya cleared the air over the expenditure of the proceeds of the sovereign bond, saying that there was “sufficient” evidence to show the money raised was eventually received into the Consolidated Fund.

The firm dispelled fears that there was misstatement “due to fraud or error” on the part of Treasury, and that the money raised could have been diverted.

“Treasury obtained authority of Controller of Budget in line with Article 206(4) of the Constitution and therefore met the requirements of the law,” states the report by PKF Kenya tabled in the National Assembly yesterday.

“In addition, Treasury received legal opinion from the Attorney General.”

The auditor said that though some Sh53.2 billion of the proceeds was paid directly from the offshore account towards settlement of a loan, Treasury obtained authorisation from the Controller of Budget.

The auditors said the loan repayment was done directly from a receiving account in New York banking giant JP Morgan Chase Bank, rather than from the National Exchequer account.

Treasury had been forced to conduct a special audit on the Eurobond after the Office of the Auditor General said there was insufficient audit evidence at the lapse of the 2015 financial year.

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