TPA risks losing 7bn/- to SPM contractor

FAUSTINE KAPAMA

DESPITE the Attorney General’s (AG) intervention, Tanzania Ports Authority (TPA) risks losing 7bn/- in a contract to replace the Single Point Mooring (SPM) at RAS Mjimwema in Kigamboni.

This follows the Court of Appeal decision to refrain from revising the findings of the High Court’s Commercial Division, which had ordered TPA to pay DB Shapriya and Company Limited 3,856,970.27 US dollars (about 7bn/-).

The AG had asked the court to act suo motu (own motion) through a complaint letter on the conduct of the proceedings that DB Shapriya had initially initiated against Leighton Offshore Pte Limited following a misunderstanding between them during contract execution.

However, in their ruling, Justices Sauda Mjasiri, Kipenka Mussa and Batuel Mmilla allowed one ground of objection raised by DB Shapriya, asking the court not to exercise its revision powers on the matter because TPA has alternative remedy of filing a suit against the decision.

Already four people, including former Director General with Tanzania Ports Authority (TPA) Ephraim Mgawe have been arraigned before the Kisutu Resident Magistrate’s Court in Dar es Salaam, charged with corrupt transaction involving over 8bn/- in the SPM tender deal.

Other accused are two TPA senior officials, Bakari Kilo (59), who was Director of Engineering and Theophil Kimaro (54), the former Procurement Unit Manager. Before the court was also 60-year old Managing Director of DB Shapriya, Kishor Shapriya.

It is stated that on September 30, 2010, TPA sealed the contract with DB Shapriya for the SPM replacement but DB Shapriya never executed the contract, rather subcontracted it to Leighton Offshore Pte Limited.

Apparently, there was a misunderstanding between the two parties, leading to Shapriya suing Leighton before the Commercial Court to realise the 3,427,017.90 US dollars, which allegedly arose from non-performance of the subcontract.

The suit was not contested by Leighton Offshore Pte Limited, who defaulted appearance and consequently on April 27, 2015, the trial court handed down a default judgment and decree in favour of Shapriya Company.

In the aftermath, Shapriya Company, initiated execution proceedings in attempt to realize the decretal sum from Leighton Offshore Pte Limited, the judgment debtor. Her efforts were futile on account of the unavailability of the judgment debtor.

As an alternative, the decree holder applied to the court to realise the decretal from TPA for allegedly holding some proceeds belonging to the judgment debtor. TPA was required to show cause as to why a portion of the debt should not be paid to the decree holder.

TPA refuted the debt in an affidavit filed in court. But after a hearing, the High Court was not satisfied that no good cause was shown and on May 11, 2016, Judge Latifa Mansoor ordered TPA to pay the decree holder the three million US dollars in satisfaction of the decretal sum