According to the Managing Director George Kubai, the Ethics and Anti-Corruption Commission took over the case for investigation, but the corporation has already given up on recovering the money.The corporation claims that it investigated the traceability of the fraudsters using its internal machinery through the regional and branch offices
The Agricultural Finance Corporation is facing a high number of loan defaulters, some of whom sources say used fake documents to secure loans running into millions of shillings, this is according to an insider who spoke to The Weekly Vision in confidence. He said Ksh.22, 661,000 was advanced to 13 farmers in Kapsabet.
Our source indicates that the Corporation advanced the amount against various collaterals in the form of title deeds which appeared fraudulent, adding that the Corporation’s management filed six cases in Court against the fraudsters and judgment was entered in favour of the Corporation but for some strange reason they have not acted to recover the money.
However, execution of the warrants issued had not been made casting doubt on the recoverability of the money advanced to the farmers. However, according to AFC management led by Managing Director George Kubai, the Ethics and Anti-Corruption Commission took over the case for investigation, but the AFC has already given up recovering the money.
The corporation claims that it investigated the traceability of the fraudsters using its internal machinery through the regional and branch offices. Due to their expiration, it is currently not possible to execute the aforementioned warrants. The corporation is in a difficult position to apply for new warrants because it cannot identify the individuals against whom they are supposed to be executed, according to AFC, which also added that it has accounted for the cases as bad and doubtful debts.
The source also reveals that the directors’ loans of Ksh.44, 929,000 including loan arrears of Ksh.4, 138,000 and Ksh.2, 058,000 due from two former Directors of the Corporation had not been recovered.
Although the Management engaged an advocate to charge securities that guaranteed these loans due from former directors, the securities had not been executed as of 30th June 2020. The corporation is also owed Ksh. 25,594,418 by ex-staff that have been outstanding for a long period. Management has not disclosed measures taken to recover the long outstanding loans.