The National Social NASSIT and Insurance Trust (NASSIT) have been accused of giving out a debenture facility of Le41,422,500,000 to Sierra AKKER Agriculture Company Ltd. at the terms of TTB + 100bp in 2014. This, the report notes, was over a period of four years accumulated interest of Le2,738,200,188 for which not a cent has been paid to NASSIT.
NASSIT, on their part, have told the auditors that the company made the first quarter interest and principal repayment of US$2.5 million and subsequently sought for a deferment on the repayment for a year in order to get the company fully functional.
The request for such payment was however not accepted and the company is also not repaying the loan as required. The Management of NASSIT further claimed that it had scheduled an emergency shareholders’ meeting for January 2019 to discuss this matter.
The Technical Audit Report dismissed Management’s response and notes however their indifferent attitude regarding the investment in Sierra Akker, which has been viewed as absolute dereliction of duty.
The Report recommends that management endeavour to collect all monies due it from Sierra Akker and discontinue any investment relationship with the company.