Ms Anne Amadi, Chief Registrar of the Judiciary. FILE PHOTO | NMG
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MPs told that the farmers’ lender entered into five-year lease agreements with the Judiciary in 2012 that were never registered or executed.
The leases, drawn during the tenure of sacked chief registrar Gladys Shollei, have since been revoked by her successor, Anne Amadi.
The AFC said it did not initiate the leasing process but that the request came from Judiciary officials in Meru who were interested in taking over its building due to larger space and facilities.
Agricultural Finance Corporation (AFC) is demanding Sh48.65 million from the Judiciary in rent and service charge arrears for 11 property leased in a curious deal two years ago.
The Public Accounts Committee (PAC) was on Wednesday told that the farmers’ lender entered into five-year lease agreements with the Judiciary in 2012 that were never registered or executed.
The leases, drawn during the tenure of sacked chief registrar Gladys Shollei, have since been revoked by her successor, Anne Amadi.
“Indeed we are very aggrieved as AFC. We received a letter from Ms Amadi on March 7, 2014 indicating that the Judiciary was no longer interested in leasing our properties yet we had invested in structural changes and even moved out from Meru property to give them room.
“The only money we received is Sh10 million out of the first down payment of Sh21.6 million. This was to cater for three month deposit, rent and service charge,” AFC CEO Lucas Meso told the Ababu Namwamba-chaired PIC.
The committee is probing the spending of the Judicial Service Commission after a special report by Auditor-General Edward Ouko revealed massive misappropriation of funds.
Richard Nyachio, who conducted the forensic audit of the Judiciary, said the report revealed irregularities in the leasing of the 11 property for use as court facilities.
“The MD AFC and former chief registrar Ms Shollei entered into an agreement to lease the 11 AFC properties. The Judiciary was to pay Sh21.6 million rent for the first quarter, deposit and service charge.”
He pointed out that out of the 11 buildings leased by the Judiciary, 10 had no lease documents.
The House team found only Meru AFC property had a duly executed lease agreement. The AFC said it did not initiate the leasing process but that the request came from Judiciary officials in Meru who were interested in taking over its building due to larger space and facilities.
“Request to lease started from the Judiciary and Meru was first to express interest in writing. Ms Shollei then called me insisting that we meet to discuss the matter,” he said.
‘‘She inquired whether we had other spaces around the country. Then I wrote informing her that we had enough spaces in 18 branches that we could lease to the Judiciary,” Mr Meso said.
Property leased to the Judiciary include AFC buildings in Meru, Kakamega, Turbo, Nakuru and Kitale. “The next seven—Kimilili, Eldama Ravine, Kericho, Kabarnet, Ngong, Bomet and Nyahururu—we only have letters of offer that were executed.
We forwarded lease agreements to the Judiciary but they never returned,” Mr Meso said.
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