Africa-Press – Tanzania. PROMINENT businessman James Rugemalira and VIP Engineering and Marketing Limited have filed an application, seeking for permission to institute and conduct private criminal prosecution against 11 persons, including Standard Chartered Bank, over 61tril/- losses to the government and the company.
The application has been filed at the Kisutu Resident Magistrate’s Court in Dar es Salaam.
According to a substituted services issued by Principal Resident Magistrate Huruma Shaidi, the parties are required to appear before the Court on November 10, 2021 for hearing of the application.
Other persons likely to face the criminal proceedings are Standard Chartered Bank (Hong Kong) Ltd, Standard Chartered Bank Tanzania Ltd, Standard Chartered Bank (Malaysia) Berhad, Wartsila Netherlands B.V and Wartsila Tanzania Limited.
The rest are Mr Sanjay Rughani, current Chief Executive Officer of Standard Chartered Bank Tanzania Ltd, Mr Samir Subberwal, the Managing Director of Standard Chartered Bank (Hong Kong) Ltd, Mr Abrar Anwal , who is the Managing Director and Chief Executive Officer of Standard Chartered Bank (Malaysia) Berhad.
In the same boat of respondents are Mr Bill Winters, who is the Chief Executive Director of Standard Chartered Bank, while Mr Hakan Agnevall is the President and Chief Executive Officer of Wartsila Corporation.
Mr Rugemalira has deponed an affidavit to support the application, stating that he is the International Independent Consultant of Independent Power Tanzania Ltd (IPTL) and a majority shareholder of VIP Engineering and Marketing Ltd (VIP).
He states that in 2005, well after the IPTL winding up proceedings had been commenced since February 25, 2002, Standard Chartered Bank (SCB), through its subsidiary Standard Chartered Bank (Hong Kong) Ltd (SCBHK) and Danaharta purportedly executed a “Sale and Purchase Agreement” (the “SPA”).
In that agreement, the businessman states, Danaharta (the Seller) specifically disclaimed “any representation or warranty with respect to the execution, legality, validity, enforceability, registration, perfection, priority, genuineness, sufficiency, collectability or value” of the Facility Agreement.
Under the SPA, SCBHK (the buyer) also, represented that it was aware of the conditions in and of the assets it had purportedly purchased and that it has assumed responsibility to be or become familiar with all the laws and regulations applicable to certain documentations, including the Share Charge Agreement.
“I believe, which belief is based on my being very conversant with the affairs of IPTL that MECHMAR conspired with Standard Chartered Bank and evaded payment of USD 4.2million as 4 percent Stamp Duty on the IPTL USD 105million, Loan Facility Instruments dated June 28, 1997,” reads part of the affidavit by Mr Rugemalira.
He stated that evading Stamp Duty is a criminal offence under section 73(2) (a) of the Tanzania Stamp Duty Act with the accrued interest compounding thereon at the rate of 26 per cent per annum since July 28, 1997 and by July 28, 2021 should have aggregated to more than USD 678,267,929.78, equivalent to 1.56tri/-.
According to him, continuing criminal offence is conspiracy by the Standard Chartered Bank Group in the evasion of payment of Tanzania Stamp Duty on the USD 105million IPTL Loan Facility Instruments, which should have been paid by not later than July 28, 1997 but has never been paid by July 28, 2021.
The businessman deponed that on March 17, 2021, while at the Segerea Maximum Remand Prison, he wrote to Magistrate in Charge of the Kisutu Resident Magistrate’s Court for summons to be issued so that he could make oral complaints and applications for permission to institute and to conduct private criminal prosecution.
According to him, such application aimed at recovering more than 61tri/- of Financial Assets that the Standard Chartered Bank Group and conspirators fraudulently obtained and or unlawfully converted and diverted from the United Republic of Tanzania and VIP Engineering and Marketing Ltd.
He stated that having read Professional Expert Report by Prof Palamagamba Kabudi dated August 12, 2014, Standard Chartered Bank groups cannot rely on the Loan Facility Instruments to claim any legal rights in IPTL since four per cent of the Tanzania Stamp Duty was not paid on the USD 105 million IPTL Loan Facility Agreement.
“Doing so without payment of the mandatory Stamp Duty is a Criminal offence under Section 73(2) (a) of the Tanzania Stamp Duty Act. Prof Kabudi also states in his Report that under Section 47(1) of the Act, unstamped documents cannot be admitted or acted upon by the courts of law and arbitration tribunals,” he stated.
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