Clients fights ATCL for 2.01bn

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The three firms ? Leisure Tours and Holidays, Wellworth Hotels & Lodges Ltd and Tanzania Bags Corporation (1998) Limited (TBC) ? demand a total of USD 1,182,595.38 (2.01bn/-) from the troubled ATCL as payments for various services offered in the past.

However, the value for the said building was perched at 12bn/- by 2013 and the value is likely to have increased.

Air Tanzania

The three firms reached the decision after ATCL and the government (Ministry of Transport) had failed to honour the agreement reached between ATCL and the companies in September last year to have the debt settled between October and December in the same year.

Leisure Tours and Holidays claimed about USD 477,506.38 while Wellworth Hotels & Lodges Ltd demanded USD 661,089 and TBC claimed USD 44000.

The companies which are being represented by Msemwa & Company Advocates wrote to the High Court requesting to auction the said building after ATCL?s failure to honour the agreement.

In the letter dated January 8, this year which was signed by advocate Jerome Msemwa to the Court Registrar requested the court to auction ATCL building which is situated along Ohio Street in the City.

The letter says interalia: ?Despite the consensus on the implementation of the judgment of the court reached on September 17 last year, where ATCL was given until or before December 31, last year to repay the debts, until now the debt is not settled.

In the letter the debtors also requested the court to appoint an auctioneer in order to sell the intended building, to recover their money.

Reached for comment, the Minister for Transport Dr Harrison Mwakyembe, said he could not comment on the matter as he was outside the country.

?I cannot comment on that matter because I am outside the country. It does not make sense to me commenting on such matters as I am outside Tanzania. My Deputy and Permanent Secretary can comment on such issues,? he said while hanging up the phone.

Transport Ministry Permanent Secretary, Dr Shaban Mwinjaka asked this reporter to text him and responded: ?I am on holiday in Tanga. I will talk to you next week when I am back in the office.?

On February 11, 2013, principal judge Robert Makaramba ordered ATCL to evaluate the cost of the building. By then the cost stood at 12bn/-.

In the vein, the three firms had reached an agreement to settle the issue outside the court where ATCL is said to have accepted to pay the amount within three months time from October, November and December last year. However, ATCL is yet to honour its obligation.

By Karama Kenyunko, The Guardian

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