Treasury Cabinet Secretary Njuguna Ndung’u has until May 29 to appear before MPs.
He is expected to answer queries as to why the East African Development Bank has been remitting millions of shillings to a UK-based lawyer in unclear circumstances.
In the event of failure, the CS faces a fine of Sh500,000 and other sanctions for failing to respond to the questions raised by MPs over EADB’s activities.
The Finance Committee of the National Assembly chaired by Molo MP Kuria Kimani wants the CS to shed light after it emerged the bank has sent a whopping Sh330 million (2.4m USD) for the past four years.
Kimani said on Thursday that they have been patient with the CS over the question about the banks’ activities that was asked by Matungulu MP Stephen Mule back in March.
“We wrote several letters to NT Cabinet Secretary on March 16, March 30, and April 2 but he has requested for postponement three times. The last opportunity we accorded the CS expires today,” the MP said.
Standing Order 42 requires CSs to respond to questions within 30 days.
“I risk being accused of failing to get responses on this critical matter,” Kimani said.
Among the concerns, beyond the remittances to the UK lawyer, is that the bank’s directors have served for 13 years yet the law requires they serve one term of five years.
The East African Development Act, which guides the operations of the EAC Community-owned bank, sets a single term of five years.
“We are informed the directors have been there for 13 years. We, therefore, don't take it kindly that such a question remains unanswered.”
“On May 29, we extend one last courtesy to appear without fail. If that doesn't happen, we will invoke a summon,” the Molo MP said.
MP Mule, who sought the response, said: “We will remain patient. We need to get to the bottom of this issue. Kenya is losing a lot of money. We need to protect the interest of Kenya.”
He decried that the National Treasury has taken the issue casually.
“ I am afraid the same issue is being experienced in other states.”
Among other issues is that Kenya has not received a single dividend for the last 13 years, yet the same should be paid every year.
