Monday, July 31, 2017

Chinese firm given 14 days to pay 70bn/-

FAUSTINE KAPAMA
A LOCAL Company, ST. Martin Co. Limited, has given a Chinese firm, China Railway 15 Bureau Group Corporation, 14 days to pay them over 70bn/- for consultancy services offered on construction of 10,000 houses countrywide for Tanzania People’s Defence Forces (TPDF) staff members.

“With this letter we demand that you pay our clients the amount demanded within 14 days short of which our instruction is to file a suit against you for recovery of the amount and general damages at your own costs as to reputation and costs,” reads part of the latter by Great Harvest Attorneys.
In its demand notice dated July 21, 2017 for 35,300,000 US dollars payments, the law firm briefly explains that sometimes in 2008, ST. Martin Co. Limited held a series of meetings with the Chinese firm in Loyang-Hanen Province regarding the project relating to construction of the houses in question.
“Your Managing Director one Mr Xu Dongkun wrote to our client an invitation letter dated February 27, 2008 listing officers from our client’s office to visit China to deliberate on the said project,” the demand letter to the Managing Director of China Railway 15 Bureau Group Corporation states.
It is stated that the officials of the consultancy company, Mr Gerald Warioba, Mr Yohana Nyakibari and Mr Abihud Nalingigwa, were listed in the said invitation letter and they duly visited China in pursuit of the project in question.
After the visit, according to the demand letter signed by advocate Kenneth Maganga, such Tanzanian officials invited the Chinese delegation to come to Tanzania and have negotiations with the Ministry of Defence and National Service.
On December 24, 2008, it is stated, ST. Martin Co. Limited organized a tripartite meeting with China Railway 15 Bureau Group Corporation and the ministry regarding the construction of 10,000 houses for the TPDF staff members.
“From your company, the said meeting was attended by all the delegates from China and Mr Li Chaoyun, the then Deputy General Manager was the signatory to the resolved agreed terms of reference on behalf of China Railway,” the demand letter further states.
Among deliberations, it is stated, China Railway 15 Bureau Group Corporation would execute the construction project that is building of standard houses for TPDF. That was bonding onto the parties to the meeting.
The law first stated that unfortunately since the Chinese firm secured the project and obtained the technical drawings from ST. Martin Co. Limited, dropped all the communications and opted to execute the project under the mask of MCC20, a company that is an alien to the negotiations to the project.
Interestingly, it is alleged, such company (MCC20) comes from the same Loyang-Hanen Province. “Be informed that our clients have done thorough investigations on the link between your company and MCC20,” the demand letter further reads.
The demand letter adds, “(Our clients) have all the details evidencing that the said company (MCC20) is just a mask behind which you are hiding. You have so far constructed 6,000 houses for a hefty amount.”
Recently, China Railway 15 Bureau Group Corporation disassociated itself with the project that it is not aware of it and was not concerned anyhow as it did not ex ecute such project for construction of the houses.
“Your allegations are not only untrue, but also undermine the reputation, credibility, brand, good name and image of China Railway 15 Bureau Group Corporation to the public of United Republic of Tanzania and People’s Republic of China,” a response letter to ST. Martin Co. Limited states.
Through Mzizima Law Associate Advocates, the Chinese firm also gave 14 days to a local Consultancy Company to write an apology for what it termed as “justifiable accusations” relating to the project.

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