Central Bank Chairman Mohamed Nyaoga who has sued Cord leader  Raila Ondinga for linking him to the Eurobond saga.


Central Bank Chairman Jairus Mohamed Nyaoga has sued Raila Ondinga over allegations that he is involved in an alleged loss of Eurobond billions.

In a suit filed on Monday, the Central Bank Chairman wants the court to compel Mr Ondinga to apologize publically failure to which he shall suffer consequences of his public slur.

He is further seeking unstated compensation and an order stopping the former prime minister from causing any further publication of alleged defamatory remarks.

On January 14 Mr Ondinga named persons of interest who included senior government officials whom he claimed had stolen the Eurobond funds instead of channeling it to development projects as the mystery behind the saga of deceit, collusion and cover up of the missing billions.

The alleged listed person of interest included: chief of staff and head of public service Joseph Kinyua, Treasury Cabinet Secretary Henry Rotich, PS Kamau Thugge, CBK director of financial markets John Birech, Moses Muthui, the manager of financial markets at the CBK, Controller of Budget Agnes Odhiambo, chief accountant at the National Treasury Bernard Muiruri Ndungu, the Accounting Unit at the National Treasury Julius Kilinda and former CBK governor Njuguna Ndung’u.

Mr Nyaoga, had initially threatened to sue Mr Odinga for linking him to the missing billions and claimed that maybe the former prime minister had confused his name with that of Mr Gerald Nyaoma, who he said was involved in the Eurobond negotiations.

“Unless restrained by Court Mr Odinga intends to continue or repeat the said unlawful acts, the words and representations complained of were made and published maliciously,” he said.

In his case documents, Mr Nyaoga claimed that the Ethics and Anti-Corruption Commission as well the Director of Public Prosecution recommended the closure of the file of investigations on Eurobond allegations without naming him on January 7.

He claimed to have had no access to Eurobond transaction or cover ups related to the missing billions as alleged.

This comes few days after Raila issued a detailed response insisting that he did not defame him and shall not apologize.

The Coalition leader in a response through his lawyer Paul Mwangi  claims that during all the time that the questions about Eurobond proceeds has been raised, Central Bank has ignored it and instead left it to the National Assembly.

Raila in what seems to be a pure contradiction, claims that Nyaoga has not attempted to ensure that the Bank fulfills its constitutional and statutory mandate to answer the questions on the discharge of its functions in the matters surrounding the Eurobond Saga.

“It is not clear which words uttered by Raila concerning Nyaoga and how he has been defamed, “said Mwangi in a response document issued on January 15, 2016.

According to Mwangi, it is also not clear whether Nyaoga by saying that he was not involved in that “saga” the Chair is denying his roles as the Chairman of the Board of Directors of (CBK) and also denying that there are duties placed on him by the constitution.

Raila in Response adds that as long as Nyaoga is in that office he still remains as “person of interest” In the Eurobond Saga.

In the letter addressed to Nyaoga’s legal team on Wednesday, Mwangi said Nyaoga was a “person of interest” in regards to the Eurobond saga questioning how the term is tantamount to defamation.

“It is not clear whether your client, by denying that he is a person of interest to the Eurobond saga is denying that there is authority that is bestowed on him by the Central Bank of Kenya Act and similarly denying that there are duties placed on him by the Constitution of Kenya, the Public Officer Ethics and the said Central Bank of Kenya.”

“It is unbelievable that in this day and age your client can contemplate legal proceedings from which he confidently expect a judicial outcome that would absolve him from all obligations placed on him by the Constitution and the Law.”

Mwangi said that Nyaoga’s mentioning, in Odinga’s presentation on the Eurobond saga last Friday, was attributed to the fact that he was the chair of CBK when the issue of Eurobond arose.