Youth fund sues over Sh150m fraud plot

By JOHN MUTHONI

The national Youth Enterprise Development Fund (YEDF) has moved to court accusing a micro-finance of plotting to swindle it Sh150 million that it had given a guarantee for a loan.

The youth fund, through its lawyer Tom Maina, moved to the court after the bank that was to receive the money as a guarantee for the loan that was to be given to Indo Africa and then accessed by the youths notified YEDF it had not received anything since last November.

Maina told High Court Judge Jonathan Havelock yesterday that the fund took up the matter after African Banking Corporation (ABC) pointed out that it had not received any money from Indo Africa.

Misleading bank

In the petition filed under certificate of urgency, the fund accused the the micro-finance institution of severally misleading African Banking Corporation that the money had not been released.

• .

  Keep Reading

• 
  Explainer: How to apply for Youth Enterprise Fund

The affidavit sworn by the funds acting Chief Executive Officer Catherine Akello Namuye, ABC became suspicious due to the long intervening period.

Catherine says that Indo Africa promised to rectify the same but it has not done anything to that effect so far.

The Youth Fund wants the court to freeze the accounts held by the micro-finance institution and compel it to refund all the monies advanced to it.