The sale of land owned by former Vice President Joseph Murumbi is undisputed.
North Mugor Limited purchased the land after 13 years, when most of the first bidders affected by the farm's squatter problem were withdrawn, according to Lucas Meso, Managing Director of the Agricultural Finance Corporation (AFC).
Two other bidders did not fulfill the counter offer of the company.
According to Meso, AFC received the entire 63.4 million Sh from North Mugor as payment for the 976-acre land that originated from the initial 2090-acre Intona Ranch.
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AFC, a financial institution for development projects that lends to individual farmers and businesses, took possession of the land after Intona Ranch secured a loan Sh. 8.6 million had been on loan on September 1
About 836 acres of land had been offered as collateral for the loan.
By August 20, 1989, the outstanding loan, plus interest, had risen to $ 24 million, and the company had no choice but to recall it.
Thirty years later, the country was sold to North Mugor Limited by its lawyers Kemboy & Co Advocates.
A human rights group, the Trusted Society of Human Rights Alliance, has recently accused AFC of undervaluing the country, noting that the public may have lost nearly 180.5 million schillings. The human rights lobby had also hinted at corruption and insisted that the company did not receive the full amount.
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However, AFC said the sale of the 976 Acres was due to two "professional" reports over a three-year period – May 23, 2012 and September 9 , 2015.
In the first valuation of Hectares & Associates, the total plot, 2,090 acres, was valued at a market value of 124 million Sh, while in another valuation of Highland Valuers Limited, the market value was 130 million Sh. The second appraiser also estimated the forced sale value, the auction price, at 97.5 million Sh. The Company states that North Mugor Holdings has accepted its counter offer on 16 September 2015, unlike two other bidders who have expressed interest.
The purchase agreement between the two was concluded on 19 October 2015 with the buyer, who made the required deposit of 15,860,000 Sh in two tranches.
The first tranche of Sh Sh. 9,860,000 was disbursed on September 25, while the second tranche of Sh Sh. 6 took place on November 6, 2015.
The MD further states that the balance of Sh47.6 million was received on November 16, 2015 through three transactions on one of its national bank accounts.
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Meso is now reading mischief about the renewed interest in the country. "It is clear that third parties that have no location in this matter have at all times attempted to evade the company of such property and have been hiding under the claims of adverse rights and ancestral rights. This activism should not be entertained, "he said in documents the Sunday Standard saw.
He said that three groups had filed various complaints on the property, and 99 members of the Moitanik clan had been assigned a part of the land of 1,089 hectares by a court settlement.
A second lawsuit filed by 358 members of Uasin Gishu was voluntarily withdrawn, while a third lawsuit was dismissed by Mr. Kitui Yiamboi. There were nine bidders early. According to the company, apart from North Mugor and two other bidders, most of the previously submitted bids were not pursued after the bidders had learned about the problem of the squatters.
The offer of North Mugor was initially lower than that of two other bidders, each of whom had offered to buy 976 acres of land for 60 million Sh. North Mugor had offered 50,000 Sh in the morning, which meant 48.8 million Sh.
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AFC responded with counter-offers to the three bidders. It wanted 63.4 million Sh from North Mugor. The company claims that most of the previously submitted offers were discontinued after customers learned that the property was heavily manned.
In 1998, the company's attempt to auction the land failed without bidders being found. As a result, AFC was forced to bid over its agency for the country. Meso said that Section 33 (2) of the Agricultural Finance Act gives the company the power to bid on its auction through an authorized agency.
It was declared the highest bidder, paying the company 28 million Sh for the land. It received the state title in May 2002.
The management saw many interested parties and feared the loss of public funds. It decided to recover money by divesting 976 acres. Meso said the many cases made it difficult for the company to sell the property at the earliest possible date, and explained why it had taken 30 years since the loan was given to Intona Ranch. "In this divestiture, the company acted as the parent and was determined, in accordance with the law, to make the best possible decision to ensure that public money is secured," he said.
The MD also said that the regime used to dispose of the land was the Agrarian Finance Act and not the Public Procurement and Waste Management Act.
"It is a misunderstanding and a misapplication of applicable laws to require the company to apply the provisions of the Public Procurement and Disposal Act to debt collection," said Meso.
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Country SeriesJoseph MurumbiAgricultural Finance Corporation