Fate of ATCL head office building now in AG hands

THREE companies have asked the Attorney General (AG), Mr Frederick Werema, to intervene in a legal wrangle involving the payment of 1.26 million US dollars (about 2.02bn/-) to rescue the attachment and sale of the Air Tanzania Company Limited (ATCL) head office building.

They are Well worth Hotels and Lodges, trading as Kunduchi Beach Hotel and Resort, Leisure Tours and Holidays Limited and TBC (1998) Limited.

It is alleged that the three companies rendered various services to ATCL, but the latter company had not paid their claims totalling 1,264,592 US dollars.

Through Msemwa and Company Advocates, the companies have written some letters to the AG, seeking his intervention on the matter.

“We request for your intervention so that our client(s) be paid the above sum of money and avoid possible sale of ATCL building located on Ohio Street,” reads one of the letters in part.

Correspondence between the law firm for the three companies and various government institutions, including the AG, Ministry of Finance and ATCL itself, indicates that Well worth Hotels and Lodges was demanding 661,089 US dollars.

The documents further show that Leisure Tours and Holidays Limited, a tour operator, demands 477,503.38 US dollars from ATCL, whereas TBC (1998) Limited claims a sum of 120,000 US dollars from the troubled company.

At some point in time, one of the three creditors applied for attachment and sale of the ATCL building, but Judge Robert Makaramba of the High Court’s Commercial Division directed for valuation of the property situated in the city centre before issuing the order sought.

It is alleged that the debt for Leisure Tours and Holidays arose from car rental services provided by the tour operator company to ATCL, but the national flag carrier could not honour the invoices rendered for payment.

For its part, TBC (1998) Limited had been storing motor vehicles for ATCL at its bonded warehouse Number 232 situated in Mbagala Industrial Area since 2007.

The Commercial Court had also advised the creditors to look for alternative property for attachment to recover its claims.

But advocate Jerome Msemwa, who is representing the three creditor companies, informed the Registrar of the Court in his letter dated November 11, 2013 that after due diligence, it had been established that the judgment debtor (ATCL) had no other property except the one sought to be sold.

“In the circumstances, we humbly pray the process of sale to continue as we have already submitted the valuation report as ordered by the court,” the letter reads.

Daily News Tanzania.