FBME Bank liquidation takes new turn

DAR ES SALAAM: THE liquidator of FBME Bank in Cyprus is waiting for the final report of approved creditors and depositors of the lender before deciding the amount to be remitted.

The liquidator, after a final approve, will remit the amount to the Deposit Insurance Board (DIB), which is under the Bank of Tanzania (BoT), the country’s central bank.

Among the creditors is Coast Textile Limited, a local company, which is claiming over 145.94bn/- from DIB Director, Mr Isack Kihwili, in execution of a decree given by the High Court in 2015.

This was revealed last Friday at the High Court in Dar es Salaam before Judge Salma Maghimbi on a hearing of an application whereby Mr Kihwili was called upon to show cause why he should not be sent to prison as a civil prisoner for disobeying the order requiring him as liquidator of FBME to satisfy the decree in question, the subject or application for execution.

Advocate Joseph Rutabingwa, for Coast Textile Limited, requested the Court to set another mention date while the parties are contemplating the arrangements by the bank’s liquidator in Cyprus to effect the payments to the DIB Director.

The Judge set the hearing date to March 6, 2024 in the event an amicable solution is not reached as regards the settlement of the decree.

Previously, another Judge of the High Court Amir Mruma directed Mr Kihwili to comply with the notice issued, requiring him in person and not by representative to show up and give reasons as to why he has not complied with the decree of the court issued over seven years ago.

The judge pointed out that the money, which is the subject of the decree is not government money, but owned by FBME, thus the Government Proceedings Act, could not apply into the matter.

According to him, the Solicitor General should not confuse a decree which is issued against the government and a decree which is against an individual, whose property is in the custody of a public officer, like Mr Kihwili, who is holding the money on account of being the liquidator of FBME.

Last May, Judge Mruma ordered the DIB Director, who was appointed by BoT as liquidator of FBME, to pay such amount after granting an application for execution of the court decree filed by Coast Textiles Limited, the applicant.

The judge pointed out that as per section 3 of the Civil Procedure Code, the decree of the court is the formal expression of an adjudication which so far as regards the court expressing it, conclusively determine the rights of the parties with regard to the matter.

The company applied for execution, requesting the sum of 145.94bn/- be realised from the DIB, the liquidators of FBME, the default of which the Director of Board be held accountable.

Coast Textiles Limited, a local company, decided to seek court intervention after the failure by FBME, whose operations were taken over by the BoT, to implement the judgment given by Judge Aloysius Mujulizi in 2015 on such payments.

Related Articles

Back to top button