High Court directs BoT to pay Coast Textile

THE High Court in Dar es Salaam on Tuesday dismissed the application by Solicitor General, who was opposing execution proceedings over 145.9bn/- payments to Coast Textile Limited against Deposit Insurance Board (DIB) Director Isack Kihwili, the liquidator of FBME Bank.

Judge 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.

“I reject the application by the Solicitor General for stay of these proceedings and insist that the Director of Deposit of Insurance Board, Mr Isack Kihwili should appear in person to show causes why he has not satisfied the court decree,” he ruled.

The judge pointed out that the money, which is the subject of the decree is not the government money, but owned by FBME Bank, thus the Government Proceedings Act, as submitted by Principal State Attorney Jacline Kinyasi from the Solicitor General Office could not apply into the matter.

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

The judge further rejected the Solicitor General’s stay application in question because the court has already determined the matter. He said that had the office of the Solicitor General properly directed themselves with the applicable laws would have not taken the steps they took.

During hearing, the Principal State Attorney had told the court that though they were not opposing to the judgment given, FBME Bank ought to have filed a certificate to the Ministry of Finance through the Attorney General to effect to the payments in question since Mr Kihwili is a public servant.

She had further asked the court to halt the execution of the decree because they have filed a notice of appeal and applied for leave to appeal against the order given by Judge Mruma on May 20, 2022 requiring the DIB Director to pay the said amount.

In his response, the counsel for FBME Bank, Mr Joseph Rutabingwa, had submitted that the decision given by Judge Mruma on May 20, 2022 was final.

Mr Rutabingwa told the court further that there was no any appeal which was preferred against the judgment issued by the High Court on the matter, thus its execution of the decree has to proceed. He submitted that the money sought to be paid is not government’s money.

In such respect, he submitted, the Government Proceedings Act could not apply in the matter.

“The money involved belongs to FBME Bank Limited, which is under liquidation. Therefore, the government has no interest at all,” the advocate told the court.

He further submitted that what the office of the Solicitor General was doing was to delay the execution of the decree. “This is an act of disrespecting valid court judgment. This matter has already been determined by the court at various levels and insisted the amount should be paid,” he insisted.

On May 20, 2022, Judge Mruma ordered DIB Director, who was appointed by the Bank of Tanzania (BoT) as liquidator of FBME Bank, to pay such amount after granting an application for execution of the court decree filed by Coast Textiles, the applicant.

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

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