Kapinga
JF-Expert Member
- Nov 20, 2007
- 727
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Bank orders sale of Irishman's Tanzanian house
Sunday, August 24, 2008 - By Kieron Wood
A bank in east Africa has ordered the sale of the home of a Kilkenny businessman who failed to pay back a business loan of more than three quarters of a million dollars.
The Commercial Division of the High Court of Tanzania ordered the sale of the home of Reginald Nolan to settle a decree for $758,656 in favour of Stanbic Bank of Tanzania.
Yono Auction Mart was directed to issue a 30-day notice before selling the home - in Ada Estate in Kinondoni District, Dares Salaam - ending a long-running dispute.
Judge Laulian Kalegeya had originally ruled in favour of the bank in April 2002, ordering the sale of the house. Nolan filed an application for stay of execution of the decree but, in 2003, Justice John Mroso dismissed the application.
Nolan then sought a reference of the decision, but the court rejected that application. The Irishman then filed an application for an extension of time to lodge another appeal.
Nolan's lawyer, Hillary Mkatte, said the bank had obtained the judgment by fraud, by concealing the fact that the guarantee had been varied.
Advocate Victoria Makani, for the bank, said the court could not grant a stay of judgment as there was no pending appeal, and any appeal would be unlikely to succeed.
Nolan's firms were involved in a series of projects in Tanzania, including a fish processing plant in Zanzibar and a 10,000 square kilometre prawn farm on the Rufiji River delta. More than 35,000 villagers were to be moved to make way for the $200 million project.
The African Fishing Company (AFC), which was jointly owned by Nolan and Dublin solicitor Brendan Liddy, a non-executive director, employed 250 workers at the fish processing plant, its main office and aboard its ten ships, but it encountered financial problems.
The proposed voluntary winding-up of the company in March 2002 was temporarily halted by the Commercial Division of the High Court. Stanbic Bank asked that any winding up be conducted under the court's supervision.
The bank also asked the court to replace the appointed liquidator, Haroun Guido Mahundi, the former inspector general of police, who it said was an interested party. The company's loans were secured on a number of fishing vessels, including the MV Maendeleo II, the MV Heather and the MV Highlander, as well as a lobster processing plant and premises in Malindi, Zanzibar.
The holding company, Tannol Holdings, was said to owe $100,000 rent on its premises in Dares Salaam when the company collapsed.
Marine surveyors commissioned by the bank to value AFC's assets reported: '‘Although nine of the ten advertised vessels are described as being in ‘good condition', three of them - namely MFV Cape York, MFV Edan and MFV Connie - had already capsized and sunk, and two others - namely MFV Cape Howe and MFV Debbie -were stranded aground."
The surveyors said MFV Connie did not belong to AFC and that none of the ships had valid flag certificates, seaworthiness or safety certificates. The bank said AFC's total debt was about $4.5 million, while the estimated market value of the assets was only $1.2 million.
Sunday, August 24, 2008 - By Kieron Wood
A bank in east Africa has ordered the sale of the home of a Kilkenny businessman who failed to pay back a business loan of more than three quarters of a million dollars.
The Commercial Division of the High Court of Tanzania ordered the sale of the home of Reginald Nolan to settle a decree for $758,656 in favour of Stanbic Bank of Tanzania.
Yono Auction Mart was directed to issue a 30-day notice before selling the home - in Ada Estate in Kinondoni District, Dares Salaam - ending a long-running dispute.
Judge Laulian Kalegeya had originally ruled in favour of the bank in April 2002, ordering the sale of the house. Nolan filed an application for stay of execution of the decree but, in 2003, Justice John Mroso dismissed the application.
Nolan then sought a reference of the decision, but the court rejected that application. The Irishman then filed an application for an extension of time to lodge another appeal.
Nolan's lawyer, Hillary Mkatte, said the bank had obtained the judgment by fraud, by concealing the fact that the guarantee had been varied.
Advocate Victoria Makani, for the bank, said the court could not grant a stay of judgment as there was no pending appeal, and any appeal would be unlikely to succeed.
Nolan's firms were involved in a series of projects in Tanzania, including a fish processing plant in Zanzibar and a 10,000 square kilometre prawn farm on the Rufiji River delta. More than 35,000 villagers were to be moved to make way for the $200 million project.
The African Fishing Company (AFC), which was jointly owned by Nolan and Dublin solicitor Brendan Liddy, a non-executive director, employed 250 workers at the fish processing plant, its main office and aboard its ten ships, but it encountered financial problems.
The proposed voluntary winding-up of the company in March 2002 was temporarily halted by the Commercial Division of the High Court. Stanbic Bank asked that any winding up be conducted under the court's supervision.
The bank also asked the court to replace the appointed liquidator, Haroun Guido Mahundi, the former inspector general of police, who it said was an interested party. The company's loans were secured on a number of fishing vessels, including the MV Maendeleo II, the MV Heather and the MV Highlander, as well as a lobster processing plant and premises in Malindi, Zanzibar.
The holding company, Tannol Holdings, was said to owe $100,000 rent on its premises in Dares Salaam when the company collapsed.
Marine surveyors commissioned by the bank to value AFC's assets reported: '‘Although nine of the ten advertised vessels are described as being in ‘good condition', three of them - namely MFV Cape York, MFV Edan and MFV Connie - had already capsized and sunk, and two others - namely MFV Cape Howe and MFV Debbie -were stranded aground."
The surveyors said MFV Connie did not belong to AFC and that none of the ships had valid flag certificates, seaworthiness or safety certificates. The bank said AFC's total debt was about $4.5 million, while the estimated market value of the assets was only $1.2 million.
