Thursday, July 28, 2011

High Court to rule on Dowans next month

The Legal and Human Rights Centre (LHRC) on Wednesday asked the High Court to summon directors of Dowans Holding SA for selling its plants to Symbion Powers contrary to orders of the court."Your Lordship, due to the court order of March 2, this year, the court directed the status quo of Dowans to remain as it is unless the court directs otherwise. 

"But we wonder why Dowans directors sold the plant to Symbion without asking for the court's permit," said Dr Sengondo Mvungi, for LHRC."They should appear before the court to tell us why they disobeyed the court's order and why the court should not punish them for such disrespect. 

"I have evidence which shows that Dowans was sold. It was reported by more than six newspapers," he explained.The request was supported by Mr Timothy Kahoho, a Dar es Salaam resident, who has also brought an action before the court, contesting the government's decision to Dowans 97bn/- for breach of contract. 


"Your Lordship, Dr Mvungi's prayer is very important because the selling and paying Dowans is the central issue in this matter. We are here to object the payment," Mr Kahoho submitted.Judge Emilian Mushi said the court would deliver its ruling next month.The Deputy Attorney General, Mr George Masaju, told the court that there were proceedings going on in London involving Dowans and judgement is expected on November 20. 

However, the judge said such case referred to by the Deputy Attorney General would not affect the proceedings he was presiding over.The Dowans took over a contract with Tanesco in 2007, from Richmond Development Company. Tanesco entered into the Emergency Power Supply Agreement with Richmond in June 2006.

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