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- Mar 14, 2011
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Concern as investor takes over bus firm
By Lucas Liganga, The Citizen Chief Reporter
Dar es Salaam. The management of state-owned Shirika la Usafiri Dar es Salaam (UDA) whose total assets are valued at Sh12 billion, has reportedly been taken over by a private investor who has paid Sh285 million only for acquisition of 51 unallocated shares of the transport firm.
UDA, whose valuation was conducted in 2009 by Dar es Salaam-based Land & Property Consultants, has 120 permanent employees, a fleet of 20 buses, land and buildings, office furniture, equipment and machinery worth billions of shillings.
Investigations by The Citizen have revealed that the investor – Simon Group Limited – was supposed to pay a total of Sh1.4 billion for the 51 shares within a specified time after entering an agreement with UDA Board of Directors. The remaining 49 shares are owned by the government.
Sources in the transportation industry told The Citizen that the agreement between UDA and Simon Group Ltd was that the latter would pay 25 per cent of the shares within the first 14 days after the signing of the agreement, another 25 per cent payment within 120 days after the first payment and 10 per cent payments each month to the completion of the deal.
However, reports indicate that, Simon Group Ltd has bought only 12 per cent of the shares for Sh285million on February 25, 2011, and has never effected another payment to date, hence breaching the clause that required the investor to pay another 25 per cent within 120 days after the first payment.
Reports further indicate that on June 21 of this year, at around 7.30pm Simon Group Limited reportedly broke into the UDA general manager's offices at the firm's Kurasini headquarters and its management took up positions. The executive chairman of Simon Group, Mr Robert Simon Kisena, declined to talk anything about the issue, when we contacted him by phone yesterday.
"Come to the UDA offices tomorrow (today) and you will know everything, including how we got into the firm's offices. But call me first before you come," quipped Mr Kisena.
The chairman of UDA Board of Directors, Mr Iddi Simba, said in a telephone interview over the weekend that it was true UDA offices have been "invaded by the local investor" but the issue was being dealt with by the Consolidated Holding Corporation (CHC), which is the one charged with liquidation of public enterprises, divestiture and monitoring and evaluation of privatised entities, among other businesses.
"The Consolidated Holding Corporation convened a meeting that was attended by UDA management, its board of directors and Simon Group and it was agreed that CHC be the spokesman on the issue. CHC has full nformation," said Mr Simba.
"How did you get my private mobile telephone number?" fumed a senior official with CHC, Mr Nyaisa Makori, on Saturday before directing this reporter to get in touch with CHC top officials today on the issue.
Unconfirmed reports are indicating that the government has suspended the sale of unallocated UDA shares, saying it was done against procurement procedures.
The reports say the Attorney General has instructed relevant authorities to float the sale of the shares under the supervision of the CHC.
When contacted by phone over the weekend, the UDA general manager, Mr Victor Milanzi, confirmed to have been forced out of his office by one Mr Kisena of Simon Group Ltd. He noted that the issue has been reported to the police.
"The investor (Simon Group Limited) has decided to take the law into his own hands," said Mr Milanzi, declining to give details, saying the issue was being dealt with the UDA Board of Directors.
The Temeke regional police commander, Assistant Commissioner of Police (ACP) David Misime, confirmed to this newspaper there was a "management misunderstanding" at UDA headquarters at Kurasini.
"We are aware that there is a contractual misunderstanding regarding the running of UDA, but we have asked the two parties to sit down and sort out their differences before we take legal measures," said ACP Misime in a telephone interview yesterday.
Mr Misime added that the police have advised UDA and Simon Group Limited to resolve their differences amicably through relevant ministries and other authorities.
The deputy minister for Transport, Dr Athumani Mfutakamba, said yesterday he was not aware of the issue but promised to make a follow up before he can give a statement.
"I am in my constituency but thanks for the information. I will get in touch with relevant officials in my ministry… you can call me back on Tuesday afternoon when I will be in a position to give you the right answers," said Dr Mfutakamba who was speaking form his Igalula constituency, Tabora Region.
Note: Huyu bwana Mr Robert Simon Kisena, ndio aliyempiga ngwara OCD maswa wakati wa uchaguzi
Concern as investor takes over bus firm
By Lucas Liganga, The Citizen Chief Reporter
Dar es Salaam. The management of state-owned Shirika la Usafiri Dar es Salaam (UDA) whose total assets are valued at Sh12 billion, has reportedly been taken over by a private investor who has paid Sh285 million only for acquisition of 51 unallocated shares of the transport firm.
UDA, whose valuation was conducted in 2009 by Dar es Salaam-based Land & Property Consultants, has 120 permanent employees, a fleet of 20 buses, land and buildings, office furniture, equipment and machinery worth billions of shillings.
Investigations by The Citizen have revealed that the investor – Simon Group Limited – was supposed to pay a total of Sh1.4 billion for the 51 shares within a specified time after entering an agreement with UDA Board of Directors. The remaining 49 shares are owned by the government.
Sources in the transportation industry told The Citizen that the agreement between UDA and Simon Group Ltd was that the latter would pay 25 per cent of the shares within the first 14 days after the signing of the agreement, another 25 per cent payment within 120 days after the first payment and 10 per cent payments each month to the completion of the deal.
However, reports indicate that, Simon Group Ltd has bought only 12 per cent of the shares for Sh285million on February 25, 2011, and has never effected another payment to date, hence breaching the clause that required the investor to pay another 25 per cent within 120 days after the first payment.
Reports further indicate that on June 21 of this year, at around 7.30pm Simon Group Limited reportedly broke into the UDA general manager's offices at the firm's Kurasini headquarters and its management took up positions. The executive chairman of Simon Group, Mr Robert Simon Kisena, declined to talk anything about the issue, when we contacted him by phone yesterday.
"Come to the UDA offices tomorrow (today) and you will know everything, including how we got into the firm's offices. But call me first before you come," quipped Mr Kisena.
The chairman of UDA Board of Directors, Mr Iddi Simba, said in a telephone interview over the weekend that it was true UDA offices have been "invaded by the local investor" but the issue was being dealt with by the Consolidated Holding Corporation (CHC), which is the one charged with liquidation of public enterprises, divestiture and monitoring and evaluation of privatised entities, among other businesses.
"The Consolidated Holding Corporation convened a meeting that was attended by UDA management, its board of directors and Simon Group and it was agreed that CHC be the spokesman on the issue. CHC has full nformation," said Mr Simba.
"How did you get my private mobile telephone number?" fumed a senior official with CHC, Mr Nyaisa Makori, on Saturday before directing this reporter to get in touch with CHC top officials today on the issue.
Unconfirmed reports are indicating that the government has suspended the sale of unallocated UDA shares, saying it was done against procurement procedures.
The reports say the Attorney General has instructed relevant authorities to float the sale of the shares under the supervision of the CHC.
When contacted by phone over the weekend, the UDA general manager, Mr Victor Milanzi, confirmed to have been forced out of his office by one Mr Kisena of Simon Group Ltd. He noted that the issue has been reported to the police.
"The investor (Simon Group Limited) has decided to take the law into his own hands," said Mr Milanzi, declining to give details, saying the issue was being dealt with the UDA Board of Directors.
The Temeke regional police commander, Assistant Commissioner of Police (ACP) David Misime, confirmed to this newspaper there was a "management misunderstanding" at UDA headquarters at Kurasini.
"We are aware that there is a contractual misunderstanding regarding the running of UDA, but we have asked the two parties to sit down and sort out their differences before we take legal measures," said ACP Misime in a telephone interview yesterday.
Mr Misime added that the police have advised UDA and Simon Group Limited to resolve their differences amicably through relevant ministries and other authorities.
The deputy minister for Transport, Dr Athumani Mfutakamba, said yesterday he was not aware of the issue but promised to make a follow up before he can give a statement.
"I am in my constituency but thanks for the information. I will get in touch with relevant officials in my ministry… you can call me back on Tuesday afternoon when I will be in a position to give you the right answers," said Dr Mfutakamba who was speaking form his Igalula constituency, Tabora Region.
Note: Huyu bwana Mr Robert Simon Kisena, ndio aliyempiga ngwara OCD maswa wakati wa uchaguzi
