CONTROLLER of Budget Agnes Odhiambo yesterday admitted that she approved the loan aimed at paying back debt to
"It is clear that the approval by the Controller of Budget was in conformity with the constitution and all the laws of
"I undertook a cost benefit analysis of the payment versus non-payment of the loans before approving it. From the information at hand, it was our opinion that failure to pay the debts would have far reaching consequences," She told the
She said in the process, the government incurred Sh1.2 billion additional cost on the loan due the extended repayment period and interest. Two weeks ago, the Jubilee administration found itself in a difficult situation when it was forced to pay Anura Perera Sh1.4 billion.
Perera is the man behind the
Perera has since issued fresh demands for an additional Sh3.05 billion. Odhiambo told the committee that the loan was to be paid in May this year but Treasury could not pay because it was yet issue the sovereign bond, which would have raised the amount. She said if the loan was not cleared it would have resulted in stalling the issuance of the bond which has been budgeted for in the 2013-14 financial year.
The Eurobond is set to be issued in June and part of the proceeds will be used to settle the syndicated loan and fund infrastructure projects. Odhiambo asked Parliament to launch investigations into the two contracts saying those found at fault should be prosecuted.
"The Controller of Budget requests Parliament to ensure that investigations into the two contracts are expedited. The investigations should seek to unearth the architects of the scheme and all parties found culpable should face the full force of the law," she said.
"All parties who participated in the entire process of designing and procuring the projects, negotiating and signing the contracts and ensuring that the contracts are performed should shed more light on this matter. The investigations should not take forever, let us reach finality and tell Kenyans what happened. Kenyans deserve the truth."
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