Dar bank takes CRB chair to court over unpaid loan

FAUSTINE KAPAMA

THE Commercial Bank of Africa (Tanzania) Limited has filed a suit before the High Court against Board Chairperson with Contractors Registration Board (CRB), Ms Consolata Ngimbwa, and four other defendants, demanding repayment of over 885m/- loan facility.

In the suit, which is before Judge Eliezer Feleshi, other defendants are VC Tanzania Limited, Christom Ngimbwa Sebastian, Sherekwa Ngimbwa and Sherekwa Katisha. The case has been set for ruling on preliminary points raised by defendants on July 15.
The defendants have, however, denied the claims and any responsibility and have raised some grounds of objections, seeking dismissal of the suit. They claim that the Bank has no cause of action against Christom Ngimbwa Sebastian, Sherekwa Ngimbwa and Sherekwa Katisha defendants.
Further, the defendants claim the court lacked jurisdiction to entertain the suit, the case is bad in law for being preferred under wrong name of the Company and under non existing contracts and for suing Sherekwa Ngimbwa and Sherekwa Katisha defendants, who are same person as different persons.
On August 26, 2010, VC Tanzania Limited, which was trading in name of Electric International Company Limited, applied for the loan and the Bank duly approved facilities whereas Christom Ngimbwa Sebastian executed as security a property on Plot No. 228 at Jangwani Beach area in Kinondoni Municipality.
It is alleged that the Bank advanced in terms of Bid Security 171m/- to enable the Company undertake certain construction works with respect of New Matemwe and Mwande Secondary and extension of Chaani Secondary school. Such security was valid for a period of six months.
Further to such arrangement, it is alleged that on September 22, 2010, the Company was extended a Guarantee facility of 1bn/- secured by the same mortgage with certificate title number 38626, as well as property on Plot No. 325 situated on Mbezi Beach area with title number 55399. The two titles are in the name of Christom Ngimbwa Sebastian.
The property with title number 38626 was to be stamped to secure 807m/-, while that with title number 55399 was to be stamped to secure 236m/-. The facility, according to the plaint of the suit, was valid for 12 months.
It is stated that Consolanta Ngimbwa, who happens to be the wife of Christom Ngimbwa Sebastian, allegedly executed spouse consent with respect to both assets of mortgages.
The facility was further secured by legal charge over the Company’s assets. Vide credit facility letters, the Bank agreed to restructure the Company’s overdraft cum guarantee facility in term loan to the tune of 562,738,000/- at the interest of 23 per cent per annum.
The facilities were to be repaid in a period of four years period in equal instalments of 11,723,800/-.
The plaint of the suit shows that despite the Bank’s goodwill exhibited in the restructuring of the facilities in order to facilitate for smoother repayment, the Company has breached the covenants to pay monthly instalments as agreed, as of March 5, 2015, the outstanding sum stood at 826,101,297/-.