Partners fall out over TRA deal FAUSTINE KAPAMA Daily News; Sunday,June 22, 2008 @00:02 Former Chief of Protocol Ambassador Abubakar Rajab and a director in the Vice-Presidents Office (Constitution - Union Affairs) Mary Peter, have entered into conflict with their co-shareholder Alfred Lyimo over mismanagement of a company they formed to collect revenue data for the Tanzania Revenue Authority. Their misunderstanding culminated into a legal suit at the High Courts Commercial Division under which their company, Neco Data Limited - of which Ambassador Rajab and Ms Peter claim to hold majority shares are suing Mr Lyimo and two other defendants, demanding, among others, payments of 1.78bn/-. Other defendants in the suit were the Tanzania Revenue Authority (TRA) and Necor Zambia Limited. In his defence, however, Mr Lyimo raised a counter claim, demanding that Ambassador Rajab and Ms Peter should not interfere with him during the operations of their company. He also asked the court to order the company to pay him 60m/- for defamatory publication and costs of establishing the project and that he should be paid $1,500 per month as allowances since April 2006 until payment in full and other general damages are assessed by the court. In the suit, Neco Data Limited demanded 500m/- from the TRA being payments for work done under the contract, 500m/- damages from Necor (Zambia) Limited for breach of contract, another 389,299, 680/- from Lyimo for also breach of contract and that Necor Zambia Limited should be restrained from interfering into the affairs of the contract. Before commencement of hearing of the case, Neco Data Limited withdrew the suit, but Mr Lyimo decided to pursue his counter claim. Hearing of the matter comes on July 9, before Judge Katherine Oriyo. Mr Lyimo is accusing Ambassador Rajab and Ms Peter of sidelining him from the company. He claims further that on April 25, 2006, Ms Peter wrote a letter, informing him about the termination of his services from the company and in May 2006, the company unjustifiably published a public notice that he was no longer their employee - and that Necor Data would not be liable of any transaction done by him. It is alleged that in 2004, the TRA advertised a tender on the project to computerize direct input for customs operations under the implementation of automatic system for the customs data acronym. Mr Alfred Lyimo and William Mkude agreed to venture into the tender and approached Necor (Zambia) Limited for the purpose. The duo invited Ambassador Rajab and Ms Peter who had shown interest into the project. On January 14, 2005, they met and resolved, among others, to form the Necor Data Company to implement the project and that Necor (Zambia) Limited would bid and offer 50 per cent of shares to Necor Data Limited. Mr Lyimo claims that he spent his own money and time to travel and communicate with the parties until they won the tender on May 2, 2005. However, after commencement of the project, Ambassador Rajab and Ms Peter allegedly high jacked the contract from Necor (Zambia) Limited by interfering with the daily operations. It is alleged further that Ambassador Rajab appointed himself as chairman of the company, while Ms Peter appointed herself the director and secretary to the board of the company. According to Mr Lyimo, no shareholders meeting was convened to elect board chairman ever since the incorporation of the company. He alleged that the changes were done without the resolution by the company members and were illegal and detrimental to the interest of other shareholders. Other shareholders of the company are Mr Mkude, who had also sued the ambassador and Ms Peter, demanding 500m/- in damages.