Tanzania: Judge Disqualifies Herself Out of 92bn/ - Payments' Case - Wor'Out Media

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Tuesday, March 7, 2017

Tanzania: Judge Disqualifies Herself Out of 92bn/ - Payments' Case


HIGH Court Judge Ama Munisi has disqualified herself from conducting the execution proceedings involving the Governor of Bank of Tanzania (BoT) and Statutory Manager with FBME Bank Limited, over payments of 92bn/- earlier decreed as a sum to be paid to Coast Textiles Limited (CTL).

The judge took the stance last week, following an application argued by Advocate Joseph Rutabingwa, for Coast Textiles Limited, after his client had lost confidence on her. However, Judge Munisi pointed out that the reasons advanced for her disqualification were insufficient.

But, referring to two complaint letters filed by the company's Managing Director, Mr Sudhir Lakhanpal, the judge ordered that the case files involving the matter should be sent to the Judge in Charge of the High Court for reassignment to another judge, who would take over the conduct of the proceedings.

Advancing submissions to support his client's position, Mr Rutabingwa had explained that Coast Textiles Limited was concerned on the way two applications; one of them filed under certificate of urgency was being handled.

The advocate submitted that both applications sought ex-part and inter-parte hearing. According to him, on September 15, 2016, Advocate Karim Rashid, for BoT, appeared ex-parte and obtained a ruling before the application was endorsed for hearing.

In both applications, he submitted, Coast Textiles Limited raised some grounds of objections and some point in time, he had applied the same as 'disposed' by way of written submissions and requested for security to avoid coming with an empty decree, but nothing was taken into consideration.

"My client thinks that justice cannot be seen to be done before your court. My client is of the view that he has not been fairly treated and therefore, the matter be placed before another judge for determi nation," the advocate submitted.

In response to the submissions in question, advocates for the BoT and that of FBME Bank, Angelister Naashon, had told the judge that the allegations given were not only false, but also fabricated claims against the court and themselves as counsel for the opposing parties.

"This court should take action against the advocate who is behind all these false accusations against it and the counsel for the other parties. An advocate has a duty to the court and his client.

The duty to the court is paramount to assist it to reach a just decision," Mr Rashid submitted. He pointed out that disqualification of a judge was a judicial process whereby a person applying for it must demonstrate potential bias on the judge.

According to him, no such demonstrations have been made by Advocate Rutabingwa. In the execution proceedings, Deputy Registrar Projest Kahyoza, has ordered BoT Governor, Prof 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 should be taken to prison.

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 overdraft facility.

Records show that BoT that was not part to the original proceedings is linked in the matter after taking over the management of FBME Bank Limited, having been implicated with money laundering crimes in Cyprus in order to protect Tanzanian customers.


On December 31, 2015, the court issued a garnishee order directing the governor of BoT 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.

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