IPTL, PAP file for 50bn/- cost security deposit

INDEPENDENT Power Tanzania Limited (IPTL) and Pan African Power Solutions (T) Limited (PAP) have filed, demanding payment of about 50bn/- as security for costs.

In an application lodged before the High Court’s Commercial Division in Dar es Salaam last week, the applicants seek orders for payment of 22,880,006 US dollar security, pending determination of proceedings challenging the enforcement of a foreign verdict for payment of 376bn/- in favour of Standard Chartered Bank Hong Kong Limited and Standard Chartered Bank Malaysia Berhard.

Advocate Joseph Makandege, who doubles as IPTL and PAP Company Secretary and Chief Counsel, has sworn an affidavit to support the application whose hearing is set before Judge Barke Sahel on October 10 this year.

The application was lodged under certificate of urgency last week.

In the affidavit in question, Mr Makandege who currently acts as Executive Chairman and Managing Director of IPTL and PAP, states that the two banks, respondents, are corporate citizens of and domiciled in Hong Kong in the Peoples’ Republic of China and Malaysia, respectively.

“None of them is registered in the country or own any property, let alone an immovable property, or asset or has a known registered establishment in Tanzania, within the local limits of the jurisdiction of this court,” reads the affidavit.

He stated that as of to date none of the principal officers of the respondent banks has signed or verified any document or pleading, be it in proceedings for enforcement of the impugned judgment or counter affidavits filed in opposition to the applicants proceedings to set aside registration of the judgment.

As a result, the advocate states, the principal officers could hardly be bound by the pleadings filed, or take charge of the consequences arising from and critically reflected, the respondents are apparently conducting themselves with a view to eventually evade the consequences.

Mr Makandege states that the counsel for the respondents who drew and filed the proceedings for enforcement of the impugned judgment has not exhibited to the court or to the applicants any document instructing and authorising him to institute and act as such for and on their behalf.

“The countries wherein the respondents are reportedly incorporated and domiciled do not have any reciprocal arrangements with Tanzania for enforcement of decisions of their respective courts, which may guarantee recoverability of the applicants’ costs of litigating the proceedings,” he states.

According to him, the monetary value of the claim the respondents seek to recover from the applicants being over 168,800,063.87 US dollars (over 376bn/-) is huge and costly to litigate, adding that the applicants have not obtained any legal aid or anyhow been exempted from payment of legal fees.