Tanesco - We can't pay Dowans!

nngu007 · 2011-10-21T13:11:48+00:00

The Citizen (Dar es Salaam) Bernard James 18 October 2011 Tanzania Electric Supply Company (Tanesco) says it would not afford to pay $65 million (nearly Sh110bn) in compensation it has been ordered to pay a private power generating company. In court papers filed to appeal against a High Court judgement that withheld the compensation, Tanesco argues that its operations could be severely affected by the huge payment owed to Dowans Tanzania Limited and Dowans Costa Rica. The Citizen learnt yesterday that Tanesco filed in the High Court an application seeking to temporarily suspend enforcement of the award of the International Chamber of Commerce (ICC) pending determination of an appeal to challenge the High Court judgement. "If execution is allowed, the applicant's ability to generate, transmit and distribute the much needed electricity will be adversely affected, causing a severe power crisis and damage the Tanzanian economy," the public power utility argues. The company further argues that it stand to suffer irreparable loss for the reason that the amount involved in the case was colossal, and if collected is likely to paralyze its daily operations. Though law firms Rex Attorney, FK Law Chambers Advocates and the support of a seasoned lawyer and the dean of the Faculty of Law at the University of Dar es Salaam, Prof Palamagamba Kabudi, Tanesco argues its intended appeal against the ICC award stands a greater chance to succeed. They said it raises serious points of law, which need to be determined by the Court of Appeal before the execution need can be allowed. Attempts to register the award was met by stiff opposition from Tanesco, politicians and civil society organisations, who argued that the order was contrary to public policy and amounted to economic sabotage. However their respective cases have failed.The filing of the application comes after Justice Emilian Mushi dismissed late last month Tanesco's petition that challenged the award issued in November against the company for breach contract in 2008. Justice Mushi declined to interfere with the ICC findings, which he said, adequately addressed the case. He went further to order that the award be formally registered and be an enforceable decree of the court. Though Tanesco admits that a notice of intention to appeal against the order is not a bar to execution, it argues that the facts of its case were strong enough to justify the court to exercise its discretion to temporarily suspend execution of the order.

Thread starter nngu007
Start date Oct 21, 2011

nngu007

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Oct 21, 2011

nngu007

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Oct 21, 2011

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Tanesco - We can't pay Dowans!

nngu007

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Kamundu

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