Tanzania: Judge maintains his neutrality in BoT case

Dar es Salaam, Tanzania.

High Court Judge Wilfred Ndyansobera has refused to disqualify himself from execution proceedings involving Bank of Tanzania (BoT) Governor and FBME Limited Statutory Manager over 92bn/- payment.

Judge Ndyansobera ruled last Friday that he has no blood relationship with any of the parties and knows no one in the proceedings.

He pointed out, therefore, that any move for his recusal from conducting the proceedings, as a judge, would go against his oath. He further said that the reasons advanced by advocate and BOT employee Karim Rashid for him to disqualify himself from the matter over his impartiality and bias lacked any legal merit.

Mr Karim had alleged that the Central Bank lost trust on the judge for ordering separate hearing of the two actions, one filed by the BoT and the other by FBME Bank Limited to oppose the execution proceedings, while there was an another order consolidating them.

In his ruling, however, the judge pointed out that claim was baseless, pointing out that, “there are two types of consolidation, complete and total consolidations. In these proceedings, there is partial consolidation, meaning that the two actions will be heard together, not jointly.

” Advocate Joseph Rutabingwa, for the Costal Textiles Limited, had strongly opposed the BOT application, arguing that the move by Mr Karim was nothing but a mere tactic to delay determination of proceedings to ensure that the execution of the decree is not effected at any cost.

He told the court that the conduct by the counsel for the BoT was aimed at interfering with the mandate of the court as at the present stage no hearing has been conducted to justify his claims relating to the impartiality and biases of the judge.

“Mr Karim appeared in court on September 15, 2016 and obtained an ex-parte interim order. I hope he should have ashamed himself on that conduct and assist the court to proceed and conclude the proceedings, instead of ensuring the decree holder does not enjoy the fruits of the verdict,” he said.

In the execution proceedings, Deputy Registrar Projest Kahyoza ordered BoT Governor Professor Benno Ndulu and Statutory Manager with FBME Bank Limited to show cause how the decree dated July 25, 2015, given by Judge Aloysius Mujulizi should be satisfied or else the two be jailed.

The execution of the decree originates from a civil case that was decided against FBME Bank Limited after selling landed property, including a plant owned by Coast Textiles Limited, which was later transferred to Five Star Investment Limited following a dispute relating to an overdraft facility.

Records show that the BOT, which was not part to the original proceedings, is linked in the matter after taking over the management of FBME Bank Limited after it was implicated in money laundering crimes in Cyprus.

On December 31, 2015, the court issued a garnishee order, directing BoT Governor to attach accounts belonging to FBME Bank Limited in execution of the decree for payments of 92,265,023,140/- , which include principal sum and interests.

Following the order, BoT filed, requesting the court to investigate into legal the ownership and, or status of the fund held in the two bank accounts and eventually lift and set aside the garnishee order.

Reasons advanced were that the FBME Bank Limited was currently managed by BoT, thus having interest on its affairs and no attachment could be made in respect of those accounts, which are legally known as Statutory Minimum Reserve Account and no any third party could claims interests therein.

The court was told such accounts are opened for specific purpose and could not be attached until when the banking operations of a particular financial institution extinguishes. In its ruling, the court agreed to lift the garnishee order but without exonerating BoT to satisfy the decree.

It noted that FBME Bank Limited was operating smoothly its business in Tanzania though they were under the management of BoT and was getting profit out of the daily transaction and that the profit was kept in different accounts apart from the ones that were thought to be attached.

As a result, the court ordered BoT Governor and the statutory manager of FBME Bank Limited to appear before the court personally to explain how they will pay the decree holder, Coast Textiles Limited.

Source: Daily News