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[TD="class: contentheading"]IPTL could lose Sh200bn after liquidation order
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[TD="class: createdate"]Wednesday, 20 July 2011 22:51
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By Ramadhan Semtawa
The Citizen Reporter
Dar es Salaam. The liquidation of Independent Power Tanzania Limited (IPTL) ordered by the High Court last week could see the Malaysian firm lose over Sh200bn.The amount is held in an escrow account at the Bank of Tanzania (BoT) and would now be administered under the Registration, Insolvency and Trusteeship Agency (Rita).
IPTL has had a controversial power generation history since its establishment more than a decade ago, and was sued in 2002 by a local minority shareholder who sought dissolution citing conflict with the Malysian partners.
Judge Semstocles Kaijage granted the prayers of VIP Engeneering and Marketing Ltd against Mechmar Corporation Berhad and the receiver manager. The development introduces yet another twist that could herald the final operation days of the private firm whose multibillion shillings 100MW power supply contract with Tanesco was dogged by corruption allegations throughout.
Sources at BoT indicated there was currently a total of Sh207bn in the escrow account. IPTL was receiving Sh3bn in deposits every month, largely in capacity charges.When reached for comment yesterday, central bank Governor Prof Benno Ndulu said he could not issue any information on the matter as they were yet to receive the court orders. He said however the bank would enforce any directives as contained in the judgment.
The same position was echoed by the Rita chief executive Mr Philip Saliboko as reported in a section of the media yesterday. The official confirmed they have been appointed liquidators and would embark on the job as soon as appropriate. Speaking from Dodoma, Kigoma North MP Mr Zitto Kabwe who is the chairman of the Public Organisations Accounts Committee said the ruling was a welcome relief.
That is the beginning and the end of the IPTL story. My committee commends BoT for sticking with a resolution not to spend the escrow accounts money.The MP challenged Rita to hasten the liquidation process, fearing that the Malysian owners could rush to open an appeal at the International arbitration court.
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[TD="class: contentheading"]IPTL could lose Sh200bn after liquidation order
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[TD="class: createdate"]Wednesday, 20 July 2011 22:51
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[TD]
By Ramadhan Semtawa
The Citizen Reporter
Dar es Salaam. The liquidation of Independent Power Tanzania Limited (IPTL) ordered by the High Court last week could see the Malaysian firm lose over Sh200bn.The amount is held in an escrow account at the Bank of Tanzania (BoT) and would now be administered under the Registration, Insolvency and Trusteeship Agency (Rita).
IPTL has had a controversial power generation history since its establishment more than a decade ago, and was sued in 2002 by a local minority shareholder who sought dissolution citing conflict with the Malysian partners.
Judge Semstocles Kaijage granted the prayers of VIP Engeneering and Marketing Ltd against Mechmar Corporation Berhad and the receiver manager. The development introduces yet another twist that could herald the final operation days of the private firm whose multibillion shillings 100MW power supply contract with Tanesco was dogged by corruption allegations throughout.
Sources at BoT indicated there was currently a total of Sh207bn in the escrow account. IPTL was receiving Sh3bn in deposits every month, largely in capacity charges.When reached for comment yesterday, central bank Governor Prof Benno Ndulu said he could not issue any information on the matter as they were yet to receive the court orders. He said however the bank would enforce any directives as contained in the judgment.
The same position was echoed by the Rita chief executive Mr Philip Saliboko as reported in a section of the media yesterday. The official confirmed they have been appointed liquidators and would embark on the job as soon as appropriate. Speaking from Dodoma, Kigoma North MP Mr Zitto Kabwe who is the chairman of the Public Organisations Accounts Committee said the ruling was a welcome relief.
That is the beginning and the end of the IPTL story. My committee commends BoT for sticking with a resolution not to spend the escrow accounts money.The MP challenged Rita to hasten the liquidation process, fearing that the Malysian owners could rush to open an appeal at the International arbitration court.
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