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Tanesco challenges ICC on Dowans

Discussion in 'Jukwaa la Sheria (The Law Forum)' started by EMT, Feb 17, 2011.

  1. EMT

    EMT JF-Expert Member

    Feb 17, 2011
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    17 February 2011

    Tanzania Electric Supply Company has filed a petition challenging the International Chamber of Commerce (ICC) ruling, awarding 94bn/- to Dowans which was commissioned to generate emergency power in the country.

    The petition filed at the High Court on February 9, this year challenges the validity of the award, saying the arbitration was not conducted fairly.

    Contacted, Tanesco Managing Director William Mhando confirmed that his company had filed the petition because it was not satisfied with the ICC ruling.

    “We did not contravene the law. Filing the petition is among people’s basic rights and we used our right effectively,” Mhando said.

    Mhando clarified the statement by the minister of Energy and Minerals William Ngeleja as saying that Tanesco had the option to pay the money or seek alternative ways.

    Tanesco in its petition requests the Court to set aside the award citing eleven grounds of misconduct, among which is failure by the arbitrators to consider the petitioners’ evidence on lack of capacity to contract by Richmond Development Company LLC thereby erroneously interpreting sections of the Law of Contract Act.

    Tanesco also claims that the arbitrators misconduct themselves on the face of records by their erroneous interpretation of Public Procurement Act 2004 and failure to consider legal obligation of the petitioner, Ministry of Energy and Minerals, the Richmond Development Company which was the Company behind the non existent Richmond Development Company to comply with the Public Procurement Act 2004 thereby wrongly accepting that the ministry had the capacity through the government negotiation Team to contract outside the procurement Act 2004.

    Tanesco is alternatively seeking to have the award remitted to the arbitrators for reconsideration, citing the awarding of USD19, 955,626.71 on account of invoices for power supplied while the reconciliation by the parties in the course of hearing, it was agreed that after setting off the amount previously paid to the respondents in advance, the petitioner was entitled to a set off of a sum of USD 4,871,052.19.

    The ICC ruling on the arbitration referred to it by Dowans, has ignited a major public debate.

    In his speech broadcast live on radio and television on February 5, this year, President Kikwete said he was not for or against payment of the 94bn/- compensation awarded to Dowans by the ICC.

    He said the issue was legal and the government would do everything possible to ensure that the penalty was successfully challenged so as to spare taxpayers the need to bear the burden of paying the money.

    He also declared that he neither had shares in Dowans nor did he know the firm, adding that he was not protecting ‘friends’ alleged to be having a stake in the company.

    The president said he did not want to comment on the issue any further because the CCM Central Committee, which he chairs, had already given an official party stand over the issue.

    “I agree with those who say that we should not hasten to pay Dowans all those billions of shillings,” he added.

  2. Ndachuwa

    Ndachuwa JF-Expert Member

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    Good move although done lately to please negative reactions from citizens
  3. Nyambala

    Nyambala JF-Expert Member

    Feb 17, 2011
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    Yaani wanakumbuka shuka kumekucha?
  4. SMU

    SMU JF-Expert Member

    Feb 17, 2011
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    Ngeleja na Mwanasheria mkuu kwa nafasi zao walisema tulipe! Ngoja tuone hizi sarakasi itaishia wapi.
  5. Nanren

    Nanren JF-Expert Member

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    Si ajabu hii ni sinema. Wanapeleka mahakamani, halafu mahakama ikiamuru Dowans walipwe mafisadi watakuwa wamejisafisha. Watachukua pesa iliyohalalishwa na mahakama yetu.
  6. Babu Lao

    Babu Lao JF-Expert Member

    Feb 17, 2011
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    Kama ni hivyo Ngereja na Werema wanasubiri nini kujiuzuru!! Hapa nahisi kuna harufu ya chezo linataka kuchezwa!
  7. EMT

    EMT JF-Expert Member

    Feb 18, 2011
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    Geresha tuu hii
  8. K

    KIDUNDULIMA JF-Expert Member

    Feb 18, 2011
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    Inanamaana Ngeleja na Mwanasheria mkuu walishauriana na nani mpaka wakasema tulipe?
  9. EMT

    EMT JF-Expert Member

    Feb 20, 2011
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    Presha ya watu ndio imefanya wachallenge ICC. Kwa nini wasingeraise those arguments during the arbitral proceeding? Hakuna kitu hapo. They just want to show the pubic that they tried.