MP in push for Treasury to track Sh5trn stashed abroad
Nominated MP Godfrey Osotsi. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
- Godfrey Osotsi wants the Attorney-General to provide the details of individuals operating the suspicious accounts.
If recovered, the money will be enough to finance the country’s annual budget for two years comfortably without taxation and local and foreign borrowing to supplement the budget.
An MP wants the National Assembly to compel the Treasury to have an estimated Sh5 trillion of illicit cash stashed in foreign accounts repatriated to the country.
In a request for statement filed in the House, nominated MP Godfrey Osotsi wants Attorney- General Kihara Kariuki to give an undertaking when the government will honour previous promises to have the money injected back into the economy.
“The Attorney-General should provide the latest update on undisclosed funds in foreign bank accounts including in Switzerland, Japan and the United Kingdom and the details of the accounts held as well as the interest earned,” said Mr Osotsi.
Suspicious accounts
The nominated MP also wants the Attorney-General to provide the details of individuals operating the suspicious accounts.
“Kenya needs this money to meet its monetary and fiscal challenges, clear the ever-growing public debt, finance infrastructure projects and stabilise the economy. The fight against corruption should give more focus on recovery of money and property,” said Mr Osotsi.
If recovered, the money will be enough to finance the country’s annual budget for two years comfortably without taxation and local and foreign borrowing to supplement the budget.
In the current financial year, the government has budgeted to spend Sh2.79 trillion, which is less by about Sh200 billion what was spent in the 2019/20 financial year. The recovery will also boost the country’s commitments to settle public debt, estimated to be more than Sh6.2 trillion, thereby saving Kenyans from the current punitive taxation regime.
Mr Osotsi’s push comes after a recent survey by a reputable American think-tank National Bureau of Economic Research (NBER), reported that powerful individuals hold more than Sh5 trillion of illicit money in undisclosed foreign accounts.
Economist Tony Watima noted that despite relevant laws in place, including Mutual Legal Assistance Act and Proceeds of Crime and Money Laundering Act, the government remains helpless in having the monies returned to build critical infrastructure.
Corruption
“The country has proclaimed its tigritude in the war against corruption and illicit capital flight for too long now. It is the time to pounce and seize the dragon,” said Mr Watima, noting, “We can be dealing with the same thing day in, day out with no tangible results to complement the efforts.”
According to Mr Watima, the existing legal framework forms the basis for identification, tracing, freezing, seizure, confiscation and repatriation of such proceeds.
Mr Osotsi’s desire is based on the fact that under the Public Finance Management Act, the National Treasury is required to publicise and aggregate its sources of revenue to fund the national budget brought to the National Assembly.
