Nation held at ransom as Dowans corners Tanesco

[BAK]

Nation held at ransom as Dowans corners Tanesco

Saturday, 22 September 2012 09:04

By The Citizen Reporter Dar es Salaam Only the Court of Appeal can avert a looming power crisis as Tanesco petitions for a temporary injunction to prevent Dowans Tanzania Limited from collecting $65million (Sh103billion) awarded to it as damages for breach of contract. After its initial bid to block enforcement of the International Chamber of Commerce (ICC) ruling at the High Court of Tanzania failed, Tanzania Electric Supply Company (Tanesco) wants the Appellate Court to intervene to prevent potential power supply problems. These developments come at a time when a report by the public utility’s board of directors is talking about an impending energy crisis after a record low rainfall led to below optimal water levels in six hydropower dams across the country. According to the report, the dams have had very low water levels in recent months as rain continues to elude most parts of Tanzania. All dams are also grossly overused, according to the Tanesco board. In its petition to the Court of Appeal, Tanesco argues that if Dowans is allowed to collect the ICC damages, this will have such drastic consequences for the Tanzanian economy that the country might not recover. The power company’s application comes barely a week after the High Court rejected its request for temporary relief from the Dowans debt. Tanesco had asked the High Court to enjoin Dowans Tanzania Limited from collecting the Sh103billion until an appeal it intends to file to challenge these damages is heard and decided. The High Court decision left the door open for Dowans Holdings (Costa Rica) and Dowans Tanzania Limited to seize Tanesco’s assets and to take over its bank accounts to settle the debt. “If (this) application is not granted, we stand to suffer irreparable loss for that amount plus interest is (so) huge that if (it’s) collected it is likely to paralyse our daily operations and bring (us) to a standstill,” argued the company in its brief to the Court of Appeal. Counsel for Dowans Mr Kennedy Fungamtama said last week he has initiated moves to recover the amount the ICC ordered the public utility to pay the private company in November 2010 for unlawful termination of a contract to generate emergency power. Subsequent attempts by Tanesco to have the ruling reversed have failed. When Dowans moved to register the ICC ruling with the High Court last year, Tanesco filed a petition asking the very same court to set aside the billion-shilling award. In September last year, however, Justice Emilian Mushi dismissed the power company’s request and directed that the ICC damages be legally registered and enforced. Tanesco countered by filing a notice of its intention to appeal at the Appellate Court. At the same time, the power supplier asked the High Court to suspend Dowan’s payment until the nation’s topmost court rules on its appeal. High Court Judge Dr Fauz Twaib rejected the petition, saying his court did not have jurisdiction over Tanesco’s application. It is this decision that Tanesco feels must be reversed to avoid power generation problems and to keep the country’s economy from going into a tailspin. Attorneys for Tanesco, Mr Lugano Mwandambo, Mr Richard Rweyongeza and Prof Palamagamba Kabudi insist that the company and the public at large are likely to suffer irreparably if the stay of execution is not granted. “If the execution is allowed to proceed, the applicant’s ability to generate, transmit and distribute much needed electricity to the public will be adversely affected causing (a) serious power crisis and damage to the Tanzania economy,” they argue. The attorneys also argue that, should they win their appeal, it would be hard to get Dowans to give back the ICC award because they have no assets in Tanzania that could be used as surety. The power utility says the Court of Appeal could use its discretion to rule in its favour despite the fact that, under current laws, Tanesco’s notice of appeal does not preclude payments to Dowans. Despite the legal wrangling, Tanesco has taken initial steps to settle its ICC-mandated breach of contract debt to Dowans. The firm was in February forced to deposit $30million (about Sh45billion) to be held in escrow at the High Court of Justice in London until the Dowans matter is resolved.

 

[Mdondoaji]

Bubu Mzee Mwenzangu,

Hii kesi ya Dowans baadhi yetu tulishasema siku nyingi tusipokuwa makini tutakuja kugawa rasilimali za nchi kulipa hili deni. Tangu lilikuwa Billion 60 hadi 95 sasa hivi sijui limefikia Billioni mia ngapi. Dawa ya hili jambo ni wote kuwakamata wote waliotuingiza mkenge na hilo dubwana. Tuwalipe hao Dowans sijui Symbion waondoke zao sisi tuwakabe hawa Rex Attorneys, na mawaziri waliotuingiza mkenge. Vyenginevyo appeals is simply a waste of time. Kwa sisi tuliosoma huo mkataba ni kwamba Tanesco wamejitia kitanzi hawana namna ya kutoka. Hizo appeals ni delaying tactics kuongeza ukubwa wa hela za malipo hakuna lolote zaidi ya hilo.

 

[FJM]

Mdondoaji, Tanzania iko chini ya CCM, na tunajua CCM kama chama ndio wanatoa maagizo kwa serikali (ref bei ya mafuta ya taa vs uchakachuaji). Sijui ni kwanini kwa miaka yote NEC wamekuwa wanakutana lakini hawaoni hatari inayoinyemelea nchi! Na wala hawajesema chochote kuhusu Legal firms zilizohusika na hii mikataba. Badala yake wameendelea kuwapa 'rewards' hawa wanasheria. Hii ni hujuma ya uchumi.

Na ninavyoona, Dowans inaweza kuingia ukarasa mwingine mbaya beyong words!