AfricaPress-Tanzania: TANZANIA Petroleum Development Corporation (TPDC) has repossessed one of its buildings, which were leased to Sacossa Limited without a valid legal agreement.
The company has also been ordered to pay accrued rent of 330m/- to allow TPDC to benefit from the asset which was used as a warehouse.
The Permanent Secretary in the Ministry of Energy Eng Zena Said, said on Tuesday in Dar es Salaam that, the recovery of the building was part of ongoing efforts by the government to repossess all its assets whose ownership is doubtful.
She said that the fifth phase government under President John Magufuli formed a special committee to verify the government assets in efforts to ensure that they are beneficial to the country.
The building located on Plot No 1022 at Mikocheni Industrial Area in Dar es Salaam was officially handed over to the TPDC yesterday.
The PS said that although TPDC has resolved the dispute with Sacossa Ltd, the company will be required to pay the accrued rent because it has been using the warehouse since 2006 to date.
“The verification of government assets is ongoing … our ministry is also involved by making follow up on our institutions to ensure that all assets with disputed ownership are being repossessed,” the PS said.
For his part, TPDC Managing Director James Mataragio said that his corporation owns various assets such as buildings and plots that’s why it formed a task force to ensure that they are properly managed.
“The task force was responsible for verifying all asserts whose ownership has caused legal disputes with other companies or institutions,” he said.
He said that TPDC being owner of Plot No 1022 located in Mikocheni Industrial Area, leased the building to Saccossa Limited to be used for business purpose but the company failed to pay the required rent.
Mr Mataragio noted that despite efforts undertaken by TPDC but the company failed to clear the debt adding that it could not evict the tenant due to various reasons including court’s injunction.
He said TPDC continued to take various steps among them holding meetings with the respective company which resulted into repossession of the building.
“It was also agreed that Sacossa Limited should pay the accrued rent of 330,240,000/- from February 2006 to May 2020,” Mr Mataragio said.
He further noted that the handover of the building was just part of the agreement reached between two parties adding that TPDC will make close prompt follow up to make sure that the payment is also cleared.
The DG assured that TPDC will ensure that all government assets are protected and being used for the benefit of the corporation and the nation in general.
A representative from Sacossa Limited who is also one of the directors Mr Donacien Kambamba said that his company will work on the government directives as stipulated in the agreement.
