Tuesday, 17 March 2015

NEWS:High Court says no to forcing additional information out of VIP Engineering Ltd

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INNOCENT-THE BLOGGER-BOY

High Court of Tanzania
The High Court has refused to
order the VIP Engineering and Marketing Limited to provide any more information on people interrogated in the 787bn/- case involving the Independent Power Tanzania Limited (IPTL).
 
Judge Salvatory Bongole ruled against Standard Chartered Bank PLC, Standard Chartered Bank (Hong Kong) Limited, Standard Chartered Bank (Tanzania) Limited and Joint liquidators of Mechmar Corporation (Malaysia) Berhad after considering arguments presented by parties to the matter.
 
 He held that the order by the court given on January 27 this year, in respect of other defendants in the matter, Wartsila Nederland BV and Wartsila Tanzania Limited, who had pressed for the same answers, also applied to the banks and joint liquidators of Mechmar Corporation.
 On that order, Judge Bongole said: “Allowing further submission will not be within the spirit of disposing fairly of this suit or save costs.” 
 
The judge said having taken into consideration the request by the defendants and objection in affidavit in answering those interrogated, he found that allowing further submissions at this stage shall cause protraction of the suit, which was not in the spirit of the law.
 
 Judge Bongole pointed out that he had granted leave sought by the defending companies and directed VIP Engineering Company to deliver to them those interrogated in writing. The judge noted that many bundles of documents had been delivered along with an affidavit in answer containing objections according to the law.
 
 “At this stage, with the huge bundles supplied, may I state that the respondent (VIP Engineering) has sufficiently supplied the documents sought and for the documents requested, but not supplied, shall if the applicant may deem right, be requested in cross-examination during trial,” the judge said.
 
 During the plea hearing by Banks, Counsel Michael Ngalo, for VIP Engineering and Marketing Limited, had submitted that the application by Bank groups for those interrogated was prolix, scandalous, oppressive and not exhibited bonafide.
 
In addition,  it has been filed in total abuse of court process, he argued.
 Ngalo submitted that the application in question was prematurely lodged as what the Bank groups were seeking were nothing other than “a fishing expedition of evidence that would be produced in court during the trial.” He said they were intended to derail the process of the court in hearing and determining the main case in time. 
 
In his submission to support his clients’ application, Advocate Gasper Nyika, for the Bank groups, had contended that, among other things, the company had not answered those interrogated as ordered by the court and the answers given were not as sufficient as required.
 
He cited one of those interrogated who required the company to provide an answer on who, other than Standard Chartered Bank, was currently the project financier or lender of IPTL. But the response from VIP Engineering and Marketing Limited was different from what the question wanted, he said.
 
 However, in his response, Ngalo maintained that his client provided sufficient answers to those interrogated, notably on the issue whether Standard Chartered Bank was the financier of IPTL. The VIP Engineering Company responded that there was none currently and the Bank was not a lender.
 
 “My client provided the answer in clear terms that he does not know who the project financier is at the moment and that Standard Chartered Bank is not the lender of IPTL. What answer other than that do you need? You cannot choose what answer my client should provide to suit your requirements,” he declared.
 
 In the main case, VIP Engineering Company is suing the defendants for their alleged role in defrauding its interests in IPTL affairs. The company has sued all the defendants, demanding 490.9m US dollars, for alleged fraud, conversion of rights and corporate waste in dealing with its interests in IPTL. 
 
 Apart from the monetary compensation, VIP Engineering Company also seeks for the court to declare that the company and IPTL have suffered substantial loss and damages as a result of the defendants’ actions and conduct.
 
 The plaintiff is also requesting the court to declare that neither the Banks nor their agents have ever been legal creditors of IPTL. Further, the plaintiff asked it to declare that the defendants committed fraud, money laundering, corporate waste and oppression, diversion of funds and conversion of IPTL and VIP Engineering Company property, as a result of their conduct.
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