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Posts Tagged ‘MYC4 CEO’

Kenyan Providers

KEEF

The matter to obtain a judgement on the award previously issued by the Arbitrator is pending in the High court.

The case was  mentioned  on 14th June 2016 where all parties appeared before the Judge.

MYC4 confirmed to the Judge that it had complied with previous directions.

The Judge gave some direction and another mention was set for 5th July 2016.

The CID /BFID is still awaiting the DPP’s  recommendation and the  way forward of the findings presented to his office in December 2015.

More update will be provided after and official communication from BFID/CID

     Keef

Milango

Myc4  lawyers  have since issued legal demand notice to Milango and its guarantors to pay MYC4 the outstanding loan balance within 21 days. Once the notice period is over the legal team will advise on the next steps depending on how Milango and the Guarantors will have responded. We will keep you posted on any new developments on the issue.

Milango

Yehu

Yehu has continued to pay to MYC4  on a monthly basis.

As advised  YEHU  had expressed interest to enter into a new and final agreement that is  reflective of the current situation to enable the clear the outstanding balance by paying a constant monthly repayment amount.Our legal teams are about to finalize the agreement.

Yehu logo

Jubilant Kenya Limited

Jubilant is working hard to keep its repayment plan to date. Jubilant signed an investment agreement with a new equity investor and capital inflow  is being processes after legal documentation has been successfully done.

See newspaper article here http://www.businessdailyafrica.com/Ex-banker-turns-desire-to-help-poor-into-microfinance-business/-/1248928/3247810/-/item/0/-/143wy7wz/-/index.html

Tanzania Providers

Mtaji

Mtaji has since reached Myc4 and  indicated that they have managed to realize some monies from  their debt collection exercise and will be transferring the same to MYC4.

MYC4 , as indicated earlier , is willing to enter into a new monthly repayment agreement to ensure that the outstanding balance is fully settled.

Mtaji

BELITA

Myc4 has since  listed  BELITA and the Directors with the CRBs as indicated earlier.

MYC4 has also increased its efforts through a debt collection agency(Quest Holdings Limites) and TAMFI in a bid  to ensure that the outstanding balance from BELITA is fully  settled.

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Dear Stakeholders,
Unfortunately, MYC4 has been taken hostage by one of our Providers, KEEF, who had an internal fraud last summer and since then have not paid any of their clients’ loans on MYC4.
Nevertheless, KEEF continues to operate. This is the good aspect of the situation. The bad and reason for Time Out is that they are allegedly using the MYC4 investors funds to finance their activities and they claim that they have no obligations towards us.
It’s going to be an uphill battle with KEEF and as the sum outstanding is significant, nearly 900, 000 € plus interest since June. Understandably, MYC4 needs to utilize all available resources in our team for this.
Furthermore, KEEF have filed a claim in the court against MYC4 alleging that they have no obligations and went ahead to request that MYC4 be prohibited from communicating about them and the situation. We have taken legal counsel and will also prepare for criminal investigation of KEEF’s board and management for misuse and speculation of the investors funds. All contracts made between KEEF and MYC4 are very clear on this.
In parallel to this we have to recover the delayed payments from Uganda and Tanzania and also from Milango in Kenya. It all takes resources and as its our foremost priority to secure the investors of MYC4 funds we have taken this step for a Time Out.
Our team in Nairobi headed by Titus and Jes are doing all in their power to rectify the situation and the investors best interest.
Mads Kjaer
CEO & Co-founder

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Keef MYC4 has highlighted severally, the challenges that have arisen as a result of issues within the provider KEEF. MYC4 would like to assure our stakeholders that we understand your concerns and frustrations because loans have defaulted, repayments are late and that the reassurances given by MYC4 coming from KEEF have not borne fruit. We apologize for this unfortunate situation. The situation is as a result of internal fraud amongst KEEF’s loan officers and in part KEEF’s decision to stop all operations pending investigations as opposed to a professional audit by a forensic team. MYC4 takes this opportunity to shed some more light on what is/has been happening between MYC4 and the provider KEEF. MYC4 has been working to recover payments from KEEF and the progress has been slower than we anticipated leading to defaults. In a meeting held on 10th September, MYC4 and KEEF agreed that KEEF will start repayments towards MYC4 in arrears and MYC4 would then allow KEEF to fund-raise on MYC4’s platform.

Daniel Kimani (KEEF GM) (Left) Titus Kuria (MYC4 GM) (Right)

Daniel Kimani (KEEF GM) (Left) Titus Kuria (MYC4 GM) (Right)

The loan repayments would create room for further disbursements and vice versa. This did not occur and in a subsequent meeting held on 26th November, KEEF confirmed that the funds would be transferred by 3rd December. Based on this agreement, MYC4 informed the investors on the expected repayments and KEEF’s anticipated return to the platform. MYC4 was assured that KEEF would keep their end of the bargain. That this did not culminate is regrettable. MYC4’s CEO Mads Kjaer has been in Kenya for the week and together with MYC4’s EAFR General Manager Titus Kuria have been personally following up on this matter. KEEF’s cooperation is not very forthcoming. It has been difficult for Mads and Titus to meet with KEEF’s management team as MYC4 received communication from KEEF’s legal counsel that all future correspondents and/or engagements including visitation to their offices must be arranged through KEEF’s legal counsel. MYC4 has urged KEEF to accept their obligations and responsibilities according to the binding documents agreed upon during the partnership; the Provider & Loan Administrator Contract; the key provision is that KEEF gave a 100% credit risk guarantee and the Deed of Guarantee and Indemnity; key provision is that KEEF set aside funds, that are 15% of the OLB. As at this moment, KEEF is in breach of the Deed of Guarantee and Indemnity as they should ideally have transferred funds amounting to 15% of the defaulted portfolio by the this week. MYC4 expects KEEF to deal with this matter amicably and professionally and should this not happen, as per the contract MYC4 reserves the right to request for the handover of all loan applicants files including loan securities and collateral of any kind and the full repayment of the portfolio and interest outstanding etc., conduct investigations and take legal and criminal action against KEEF as an organization, its executive management and Board of Trustees. KEEF’s legal counsel has informed us that their offices are closed until 5th January. With the festive season and as the year comes to an end, we shall be unable to accomplish much in the next two weeks. However, MYC4 is using this time to prepare and inform stakeholders connected to MYC4 and KEEF such as Standard Chartered Bank, the Association of Micro Finance Institutions of Kenya (AMFI) and other relevant partners. There shall be more updates as the situation unfolds.

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