What Henry Rotich told graft detectives on Eurobond cash

National Treasury Cabinet Secretary Henry Rotich has given ministries that benefited from Eurobond cash a three-week ultimatum to file reports on how the money was spent.

Mr Rotich revealed this when he appeared before the anti-graft detectives on Saturday.

This revelation means the probe on Eurobond proceeds might take longer than expected, said one of the officers involved in the investigations.

Director of Public Prosecutions Keriako Tobiko last Tuesday gave the team 10 days to conclude the probe.

Both Rotich and his Principal Secretary Kamau Thugge were grilled by the anti-graft detectives as the biggest corruption investigation got under way.

They recorded statements with the Ethics and Anti-Corruption Commission (EACC) team set up to probe graft claims linked to the controversial Sh250 billion Eurobond transaction.

Thugge was the first to face the joint team of detectives from EACC and Directorate of Criminal Investigation (DCI) on Friday.

More top Treasury officials are expected to be questioned this morning following Tobiko's directive.

Sources said Thugge spent almost six hours at EACC offices in Integrity Centre where he left at about 7.30pm.

More officials, including the investment secretary and bank managers who handled the transaction, are set to face the team that includes officers from Economic Crimes Unit.

The investigators are supposed to establish if there was any criminal offence that was committed in the whole process.

It has been reported that proceeds of the bond were banked in an offshore account contrary to the Constitution.

CORD leader Raila Odinga has claimed Sh140 billion cannot be accounted for.

The Treasury has said that Sh52.5 billion ($600 million) was used to pay a syndicated loan and the balance of Sh197 billion lumped with other funds before being disbursed to the various ministries and agencies.

During questioning, Thugge and Rotich are said to have insisted no money was lost in the transactions.

The CS, who led the transaction, told the officers that the goals for issuing the bond were met.

These, he said, included to diversify external sources of funding for Government projects, achieve lower interest rates, build international reserves, and stabilise the shilling.

EACC CEO Halakhe Waqo confirmed some bureaucrats involved in the transactions have been questioned and had recorded statements.

"The response by the officers so far invited has been positive and the commission expects the local aspects of the investigations will speedily be concluded," Waqo said.

"In this regard, the officers whose time schedules for proving information are yet to be reached are asked to adhere to the same," he added.

The team of at least 20 detectives has six days to give the preliminary report on any criminal element in the transaction.

The team headed by deputy head of operations at Directorate of Criminal Investigation Mr Patrick Kiswii was moved to EACC and ordered to swiftly probe the complaint.

The detectives said they may need expert advice if they find the matter complicated.

The officers have been asked to give a preliminary report on their findings and if need be, they can ask for an extension of the time to finish their probe.

The two agencies had apparently started investigations following complaints and adverse reports that the proceeds were misused.

Opposition leaders have argued official statutory reports were giving contradicting figures and asked the National Treasury to publish details on Eurobond transactions within two weeks.