South Sudan’s Gai Deng Vows Tough Action as(East African Development Bank(EADB)Faces Explosive Corruption Claims
By Zippy Tumaini
The East African Development Bank (EADB) has been thrust into the spotlight after a Kenyan activist petitioned the East African Legislative Assembly (EALA), accusing the regional lender of entrenched corruption, conflicts of interest, and systemic governance failures.
Peter Odhiambo of the Justice Alliance tabled the petition before EALA’s Committee on Friday, chaired by Kennedy Musyoka Kalonzo. In his submission, Odhiambo described the bank as a “mafia-style cartel” that no longer serves the interests of East African citizens.
“This bank, whose vision was to foster development in our region, has become captive to a few people and will remain so unless EALA rises to the occasion,” Odhiambo warned.
He pointed to board members who have overstayed their terms, alleging that some have served for more than 18 years, borrowing money from the bank and then using their positions to write off the loans. Odhiambo also cited conflicts of interest involving senior officials, including past directors, and accused the bank of falsely invoking diplomatic immunity to evade scrutiny.
“In recent criminal cases, EADB has tried to invoke a non-existent diplomatic immunity. Kenya’s Ministry of Foreign Affairs has confirmed to the courts that immunity extended to the EADB is not absolute and cannot apply under the Vienna Conventions,” he said.
The activist further condemned what he called “scandalous legal fees,” noting that between 2016 and 2024, EADB paid USD 4.4 million to lawyers while failing to declare a single dividend to shareholders — the citizens of East Africa.
The allegations drew strong reactions from lawmakers. South Sudan’s representative Gai Deng expressed deep concern, promising that the Assembly will not let the matter rest.
“We are very shocked by this petition. The details that you have presented are so vast, and I think it will require us to do justice,” Deng said, adding that EALA has a duty to safeguard the credibility of regional institutions.
EALA members agreed that the claims raise serious questions about governance at the lender and pledged to probe the matter further.
For now, Odhiambo and the Justice Alliance are pressing EALA to launch a full investigation into EADB’s management, review the tenure of long-serving board members, and scrutinize the institution’s ballooning legal expenses.
The petition has opened one of the most dramatic chapters yet in the history of the regional bank, with lawmakers like Gai Deng insisting that East Africa cannot afford to look away.
