The controversy surrounding 20m US dollars (about 31bn/-) owned by Libyan Government has taken a new turn after M/S Mohamed Enterprises Tanzania Limited (MeTL) filed two applications before the Court of Appeal, challenging payments of the money to MEIS Industries Company Limited.This time around, MeTL is seeking for stay of all orders authorizing such payments to M/S MEID and that the court should review its ruling given by a panel when determining an application for revision of High Court proceedings regarding the matter.
The two applications have been filed under certificate of urgency on grounds that MEIS Industries Company, through court broker Mustafa Nyumbamkali, was fighting and acting hastily, to ensure the disputed money, now lying at the Tanzania Investment Bank (TIB) and National Bank of Commence (NBC) is credited to the company's account."If this is implemented, the substratum of the application will be gone and it will be rendered useless. As of Friday evening (July 22, 2011), the order to credit had been already served to (TIB) and garnishee order served to (NBC)," reads part of pleadings filed on July 26, 2011.The MeTL is seeking for orders that the decree and an order directing TIB to pay MEIS Industries Company, 20 million US dollars and a garnishee order served unto the NBC be put in abeyance, pending the determination of the application for review of the ruling of the Court.Alternatively, MeTL is asking that if the money has been credited to the account of MEIS Industries Company, the latter be ordered to deposit the same with the Registrar of the High Court, through a Bankers Cheque or be returned to the TIB and NBC, Corporate Branch.
In its ruling dated July 21, 2011 sought to be reviewed, two Justices of Court, James Bwana and Bernard Luanda, "struck out" the application for revision lodged by MeTL, challenging dismissal of its objection by the High Court over release of the money to MEIS Industries Company.The two justices ruled, among other things that "as the objection was dismissed for want of prosecution, the remedy available is to file a suit and not to challenge by way of revision. Once the objection is dismissed, there is no room for an appeal against that decision."
However, the third Justice in the panel, Sauda Mjasiri, gave a dissenting ruling after observing several irregularities in the High Court proceedings, including the order for hearing the case exparte and the dismissal of objection proceedings.The other irregularity was non involvement of the government of Tanzania in the matter, following her participation in the signing swap debt agreement involving the money, with Libyan government. She, therefore, ordered the proceedings of the High Court to be quashed.
She further directed the setting aside of the exparte judgement and the decree issued in favour of MEIS Industries Company and ordered the matter to be heard afresh before another High Court Judge.The MeTL believes that its application for review of the majority ruling of the court has great chances of succeeding and that if that happens, the whole proceedings, inclusive the High Court's judgement and decree, would be quashed.
On October 27, 2010, High Court Judge Samwel Karua ordered the Government of Libya to pay to the company the said 20 million US dollars and 14 million US dollars as general damages for breach of a contract involving construction of a cement factory in Lindi Region.It is claimed in the suit that the government of Tanzania owes the Libyan Government a sum of 101,687,077.50 US dollars. As a result of successful negotiations between the two states, a debt swap agreement was sealed on July 20, 2005.
The Libyan government agreed to cancel interests and penalty and opted for a debt swap of 40m US dollars, emanating from the said 101,687,077.50 US dollars. The two countries agreed that two accounts be opened in local banks, one at National Bank of Commerce and another at TIB.Each account was credited with 20m US dollars. It was agreed further that the amount deposited would be invested in project mutually agreed by the two countries.
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