SA 'investor' leaves without paying 1.8bn/- debt



Quote Originally Posted by SEBASTIAN MRINDOKO
7th June 2010 @ 12:00

MYSTERY is still overwhelming over the recovery of 1.8bn/- debt as rental arrears belonging to Local Authorities Pensions Fund (LAPF) which the South African 'investor' bolted out of the country without settling. The firm, African Sky Hotels and Resorts, which owes LAPF over 1.8bn/-, was running the popular Millennium Towers Hotel in Dar es Salaam before suddenly leaving the country without clearing its rental bills.

The LAPF Director General, Eliud Sanga, told the 'Daily News' today that the firm which became LAPF tenant for a long time, had problems paying rent, repaying the loan that we (LAPF) gave it, and paying other related running costs of its own hotel. Since the South Africa firm has been reluctant in paying back the debt, LAPF has decided to hand over the issue to the Attorney General because it will involve some legal matters. Also the Ministry of Foreign Affairs and International Co-operation will also be involved because the debtor is a foreign firm.

"There are international laws binding while dealing with defaulting foreign firms, thus it is significantly important to involve the Attorney General and the Ministry of Foreign Affairs and International Co-operation," Sanga said. He said that the defaulting tenant is G.K. Hotels and Resorts, a subsidiary of African Sky Hotels and Resorts, which the management of LAPF (owners of the building) forcefully evicted back in November 2007 because of the rent issue. "A South African Company has been playing delaying tactics in filing a petition at the High Court, Land Division to dispute an attempt by LAPF and its property managers (Gimco Africa Property Managers Limited) to evict them from the building," he said.

He said a South African firm filed a suit No. 35 of 2007 at the High Court (Commercial Division), questioning the decision to evict them without following the contract's clause on arbitration. He said also that the High Court Tanzania (Commercial Division) appointed Lameck Mfalila, (rtd) judge from Court of Appeal, to carry on the arbitration between the LAPF and the South African investor. However, the arbitration between the two parties fell apart and there was no more talks intended to settle the debt.

Sanga added the defaulting firm will be supposed to pay the debt and all the other costs from the point when LAPF started requesting the firm to pay back the money to the point when the matter will have been settled. The debt in question constitutes 1.2bn/- in rent arrears for the hotel premises within the Millennium Towers complex in the city, and over 600m/- in accumulated cash loan payments plus a 28m/- electricity bill dating back to last year.
Bado serikali CCM na JK inawakumbatia wawekezaji uchwara wa kutoka nchi za nje ambao interest zao ziko kwao - Lini hiki chama kitawalipa Watanzania gharama ya kuwabebesha mzigo mkubwa wa kodi na hasa kwenye hili jinamizi la EAC.