BY SAM ALFAN.
A farmers co-operative society wants two secured creditors of Mumias Sugar company ltd summoned to court and explain how it assigned their debt to a local lender.
Gakwamba Farmers society says in the application the chief executive officers of Propaco Bank, Eco-Bank as well as Victoria Commercial Bank should appear in court explain how the debts were transfered.
The farmers society through lawyer Danstan Omari said the court should be told how debts later ended up being assigned to Vartox Resources Inc.
Proparco, a French company and Eco Bank financed the ethanol and power plants at Mumias Sugar company.
The society argue that after thoroughly perusing documents filed by Vartox Resources Inc they have noticed some glaring inconsistences or lapses as to the manner in which Eco-Bank and Propaco transfered their liability to Victoria Commercial Bank and ultimately Vartox Resources Inc.
Omari argued that the notice to the borrower by Propaco dated October 4,2021 is not simultaneously executed by Propaco and Victoria Commercial Bank in all the places parties were supposed to execute in the said transfer or notice.
“The manner in which Propaco and Eco-Bank transfered liability to Victoria Commercial Bank and later to Vartox Resources Inc without disclosure of the consideration given whatsoever leave much to be desired,” Omari submitted.
