THE variation of agreement for 105 million US dollars (about 300bn/-) loan allegedly used for construction of the Independent Power Tanzania Limited (IPTL) power plant in Dar es Salaam, was made without the consent of VIP Engineering and Marketing Limited.
This was said by VIP Company’s
International Independent Consultant, Mr James Rugemalira, when giving
evidence in the 1 trillion/- suit in which the local investment company
is suing Standard Chartered Bank and five other defendants for fraud in
IPTL.
Mr Rugemalira told Judge Salvatory
Bongole at the High Court in Dar es Salaam on Thursday that such
variation allegedly made by Mechmar Corporation (Malaysia) Berhad,
Wartsila Nederland BV and Danharta, was made twice in 2001 and 2003.
Led by international lawyer from
America, Mr Chris Provenzano, the prominent businessman narrated that
the first time his company learnt that Standard Chartered Bank was
claiming an interest in IPTL was in November 2005.
He testified that there was a letter
dated November 23, 2005 that was addressed to IPTL on the 105 million US
dollars loan facility agreement dated June 28, 1997, a document which
was also copied to the VIP Engineering and Marketing Limited, a local
investment company.
“When I received the letter, VIP and I
as a director of IPTL representing VIP, was not made aware before the
variation of loan facility agreement,” Mr Rugemalira told the court his
evidence during examination in chief.
The businessman testified further that
after seeing such assertion in the letter he wrote a polite reply,
cautioning Standard Chartered Bank that it would be illegal for
continuing to claim any interest in IPTL without obtaining consent of
the court or VIP Company.
According to him, the purposes of
sending such reply letter was to put on notice to Standard Chartered
Bank and all other persons copied to it that the affairs of IPTL were
under the control of the court since February 25, 2002 when VIP company
petitioned for winding up of IPTL.
Defendants in the suit are Standard
Chartered Bank, Standard Chartered Bank (Hong Kong) Limited and Standard
Chartered Bank (Tanzania) Limited.
Other defendants include Joint
liquidators of Mechmar Corporation (Malaysia) Berhad, Wartsila Nederland
BV and Wartsila Tanzania Limited. VIP Engineering Company, through a
team of more than ten lawyers from Tanzania and developing countries, is
suing the defendants for their alleged role in defrauding its interests
in IPTL affairs.
It demands 490.9m US dollars, for
allegedly fraud, conversion of rights and corporate waste. Apart from
the monetary compensation, VIP also seeks in the case which involves
biggest amount in the judiciary’s history, for a declaration that the
company and IPTL have suffered substantial loss and damages as a result
of the defendants’ actions and conduct.
The plaintiff is requesting the court to
declare that neither the Banks nor their agents have ever legally been
creditors of IPTL and defendants committed fraud, money laundering,
corporate waste and oppression, diversion of funds and conversion of
IPTL and VIP property, as a result of their conducts
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