Firm Sued Over U.S.$36 Million Double-Dealing
Dar es Salaam The government of Libya has instituted asuit against the Meis Industries Company Limited (MICL) together with a courtbroker, Mustafa Nyumbamkali, for swindling over Tsh57.3bn (about $35.97m).
In a suit lodged recently by the Embassy of Libya toTanzania in the High Court of Tanzania, both defendants are said to have hadwithdrawn the colossal sum from Tanzania Investment Bank (TIB) to the detrimentof the Libyan Government.
The said Libyan embassy has engaged two counsels, TaherMuccadam of Muccadam & Co. Advocates, and Gabriel Mnyele of Marando andMnyele & Co. Advocates, in executing Civil Case No. 225 of 2012 of the HighCourt ad Dar es Salaam for the purpose of recovering the monies been dishedfrom the account of the government of Libya within the said bank.
Accordingly, the MICL is alleged to have been credited with$17.36m in its account no. 004200000447902 by TIB within the same bank, whileMr. Nyumbamkali was also credited Tsh24.22bn ($15.21m) at his account no.011103026411 within the National Microfinance Bank (NMB) Temeke branch, Dar esSalaam, as well as Tsh5.34bn ($3.35m) paid to MICL as costs.
The lawyers for the Libyan government maintained that theirclient sustained loss in terms of foreign exchange amounting $17.36m andfurther loss in terms of local currency amounting Tsh29.57bn ($18.56m) therebytotaling Tsh57.35bn (about$36m).
Under any circumstances, the counsels for the Libyangovernment have sought refund of such monies to their client plus generaldamages not less than $200m.
Notwithstanding, the counsels have stressed that the Libyangovernment's claims against the company and court broker, jointly and severallyis for a declaration that a verdict of Judge Samwel Karua in Civil Case No. 124of 2010 be declared null and void and be set aside, together with the decreeand any subsequent rulings and orders emanating therefrom for having beenfraudulently obtained and for lack of service to it for the order to pay bothof them.
It should be noted that the MICL is a joint venture betweena businessman, Islam A. Saleh, who purported to entered into InvestmentAgreement with the Great Socialist People's Libyan Arab Jamahiriya forestablishment of a cement industry in Lindi, on one hand, and the Minister forForeign Affairs and International Cooperation, Mr. Bernard Membe, on the otherhand, who is said the service of Civil Case No. 124 of 2010 before Judge Karuato the Libyan Embassy was channeled through his ministry.
Minister Membe had on 3rd July, 2009, written a letter tothe Prime Minister of Libya, referring their conversation in respect of creditfacility of Tsh28.9bn (about $18.15m) laying in TIB as to be extended to thecompany for the proposed cement factory in Lindi.
An investigation conducted proves the money to belong to thegovernment of Libya held in TIB following failure of the government of Tanzaniato pay Libya for oil supplied in 1983 on credit basis.
Anyway, the counsels have stated in the plaint against thefirst two defendants that the company filed its suit on 13th September up to17th October, 2010, when Judge Karua gave his order of service of the suit tothe Libyan diplomatic office through Membe's ministry.
"The Ministry of Foreign Affairs and InternationalCo-operation has no power to serve Court Summons to anybody under the CivilProcedure Code, Cap. 33 Revised Edition 2002 of the Laws of Tanzania," thelawyers stressed in the plaint and further averred to be fraudulent move of thecompany in misleading the court and deny the plaintiff a right to defenditself, thus making all the proceedings null and void.
Notwithstanding, they said the suit was heard ex-partewithin very short time and judgment given within six days for the company todish the colossal money from TIB and further awarded general damages of $14m.