Zak Malang
JF-Expert Member
- Dec 30, 2008
- 5,404
- 234
Tripoli cautions Dar over $20m debt cash
The Libyan government has told the government of Tanzania it will consider unlawful any move to release $20 million (about Sh30 billion) from its account, meant to assist local investors, which is at the Tanzania Investment Bank (TIB).
The Libyan government issued notification to its Tanzanian counterpart in a November 2010 letter to the Ministry of Finance and Economic Affairs, copied to the Ministry of Foreign Affairs and International Cooperation, after a local company, MEIS Industries Ltd, claimed it has won an investment agreement with the two governments, for the construction of a cement factory in Lindi Region.
The $20 million held at the TIB Account Number 004-200-0002216-01 is accrued from a settlement arrangement between the two governments on how to settle a debt that Tanzania owes Libya.
Under the arrangement, on July 20, 2005 the Libyan government agreed to cancel interest and penalty interest on the money it is owed by Tanzania to the tune of $101,687,077.50.
On March 4, 2009, the two governments reportedly agreed that the $20 million-plus interest, which is held at the TIB, shall be advanced to MEIS Industries Ltd for the construction of the cement factory in Lindi region.
According to the understanding between the two governments, the arrangement was rescheduled through a debt swap where $20 million was earmarked for investment in Tanzania in sectors to be mutually agreed .
However, in its letter to the Finance ministry, the Libyan government said it was agreed that MEIS Industries Ltd should repay the loan plus accrued interest to the TIB account within the terms to be agreed upon between the two governments and the company.
It said the investment agreement was prepared and signed by the government of Tanzania, the TIB and MEIS Industries, and was sent to Libyan authorities for perusal and clarification.
The letter said the Libya informed Tanzania that it was not happy with the terms and conditions of the investment agreement and it would not be in a position to endorse it.It added that there has been no agreement signed between the two countries to that effect.
The letter stated that there were two copies of the intended investment agreement, in which one provides for guarantee by the government of Tanzania and the other one showing that the government has not issued guarantee for the money to be borrowed by MEIS.
"The Tanzanian government knew the nature of the arrangement to the effect that no agreement has been signed but it has not taken serious steps to rectify the anomalies," the Libya says in the letter signed by its general director of Loans and Debts Department, Mr Abdulhakim M. Elmisurati.
"It is our view that necessary steps should be taken by the government of Tanzania in order to set the atmosphere free from this embarrassing situation," says letter, a copy of which was seen by The Citizen.
Source: The Citizen 0f 31/1/2011
MY Take:
Kushtuka kwa Libya kunaonyesha kuna kitu mbaya ambacho serikali ya TZ au viongozi wake wakuu walikuwa wanataka kufanya, au tayari wamesha fanya.
Tusisahau TIB mkuu wake ni Peter Noni ambaye anatajwa sana katika scandali ya EPA na pia ndiyo msimamizi wa hela zilizodaiwa kurudiushwa na wale wezi wa EPA.
The Libyan government has told the government of Tanzania it will consider unlawful any move to release $20 million (about Sh30 billion) from its account, meant to assist local investors, which is at the Tanzania Investment Bank (TIB).
The Libyan government issued notification to its Tanzanian counterpart in a November 2010 letter to the Ministry of Finance and Economic Affairs, copied to the Ministry of Foreign Affairs and International Cooperation, after a local company, MEIS Industries Ltd, claimed it has won an investment agreement with the two governments, for the construction of a cement factory in Lindi Region.
The $20 million held at the TIB Account Number 004-200-0002216-01 is accrued from a settlement arrangement between the two governments on how to settle a debt that Tanzania owes Libya.
Under the arrangement, on July 20, 2005 the Libyan government agreed to cancel interest and penalty interest on the money it is owed by Tanzania to the tune of $101,687,077.50.
On March 4, 2009, the two governments reportedly agreed that the $20 million-plus interest, which is held at the TIB, shall be advanced to MEIS Industries Ltd for the construction of the cement factory in Lindi region.
According to the understanding between the two governments, the arrangement was rescheduled through a debt swap where $20 million was earmarked for investment in Tanzania in sectors to be mutually agreed .
However, in its letter to the Finance ministry, the Libyan government said it was agreed that MEIS Industries Ltd should repay the loan plus accrued interest to the TIB account within the terms to be agreed upon between the two governments and the company.
It said the investment agreement was prepared and signed by the government of Tanzania, the TIB and MEIS Industries, and was sent to Libyan authorities for perusal and clarification.
The letter said the Libya informed Tanzania that it was not happy with the terms and conditions of the investment agreement and it would not be in a position to endorse it.It added that there has been no agreement signed between the two countries to that effect.
The letter stated that there were two copies of the intended investment agreement, in which one provides for guarantee by the government of Tanzania and the other one showing that the government has not issued guarantee for the money to be borrowed by MEIS.
"The Tanzanian government knew the nature of the arrangement to the effect that no agreement has been signed but it has not taken serious steps to rectify the anomalies," the Libya says in the letter signed by its general director of Loans and Debts Department, Mr Abdulhakim M. Elmisurati.
"It is our view that necessary steps should be taken by the government of Tanzania in order to set the atmosphere free from this embarrassing situation," says letter, a copy of which was seen by The Citizen.
Source: The Citizen 0f 31/1/2011
MY Take:
Kushtuka kwa Libya kunaonyesha kuna kitu mbaya ambacho serikali ya TZ au viongozi wake wakuu walikuwa wanataka kufanya, au tayari wamesha fanya.
Tusisahau TIB mkuu wake ni Peter Noni ambaye anatajwa sana katika scandali ya EPA na pia ndiyo msimamizi wa hela zilizodaiwa kurudiushwa na wale wezi wa EPA.
