Gakwamba Farmers Corporative limited has filed an application seeking the CEOs of Propaco Bank, Eco-Bank and Victoria Commercial Bank summoned to appear in court over the Mumias sugar debt.
Through lawyer Danstan Omari, the farmers want Proparco and Eco-Bank CEOs summoned to give evidence on the manner in which their banks assigned their respective debts to Victoria Commercial Bank and ultimately Vartox Resources Inc.
The Mumias farmers argue that after thoroughly perusing documents filed by Vartox, they have noticed some glaring inconsistences or lapses as to the manner in which Eco-Bank and Propaco transferred their liability to Victoria Commercial Bank and ultimately Vartox Resources Inc.
“The notice to borrower by Propaco dated 4th October 2021, is not simultaneously executed by Propaco and Victoria Commercial Bank at all the places the parties were supposed to execute the said transfer and/or notice,” Said Omari.
Non-disclosure
Omari added that the manner in which Propaco and Eco-Bank transferred liability to Victoria Commercial Bank and later to Vartox without disclosure of the consideration given whatsoever leave much to be desired.
The farmers want Victoria Commercial Bank CEO Yogesh Patani to be called for cross-examination so that he can shed the light on the prudence of Non-performing Assets (NPA) assignment transaction.
The CEO also needs to be put to task as to what circumstances and at what consideration value he further assigns the debt to Vartox which is a non-banking foreign body.
The hearing of the various applications filed contesting the leasing of Mumias Sugar Co. assets to Sarai Group has been concluded. Sarai was the lowest bidder of the lease.
Justice Alfred Mabeya will deliver the judgment on notice.
