High Court orders Sahara Media Group to wind up

DAR ES SALAAM: THE High Court Commercial Division has ordered the winding up of Sahara Media Group Limited, a Tanzanian company engaged in mass media, press services, advertising, and publicity.

Judge Dr Mwajuma Kadilu made the ruling after granting a petition filed by the company, supported by an affidavit from its Principal Officer, Steven Diallo, along with the company’s Memorandum and Articles of Association, a certificate of name change, an extract from the Board of Directors’ resolution, tax demand notices from the Tanzania Revenue Authority (TRA) Mwanza, and audited financial statements for 2023 and 2024.

In her ruling, Dr Kadilu said the company is no longer commercially viable, with debts outweighing its assets and no ability to settle liabilities.

“…having been proved that the petitioner is in significant loss and unable to pay debts, winding up is the appropriate course,” the judge said.

“I am satisfied that Sahara Media Group Limited qualifies to be wound up. Consequently, this petition is allowed.” She appointed Advocate Alex Mgongolwa of Excellent Attorneys (Roll No. 782) and Advocate Frank Mwalongo of Apex Attorneys (Roll No. 1118) as joint liquidators.

Under Section 297 of the Companies Act, the liquidators will serve for three months, exercising all powers granted under the law, subject to court supervision.

The court directed that the petitioner forwards a copy of the order to the liquidators, the Commissioner of TRA, and the Registrar of Companies for registration under Section 290 of the Companies Act.

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Dr Kadilu also prohibited any disposition of company property, transfer of shares, or alteration in membership from the commencement of the winding up, in line with Sections 287 and 288 of the Act.

The liquidators are tasked with taking custody of all property and claims belonging to the company under Section 302, and to submit a final report to the court upon completion, including adjustment of creditors’ rights, as provided under Section 307.

The petition presented evidence of the company’s inability to pay debts, including outstanding tax liabilities of 97,746,606/-.

Financial reports showed a loss of 3,934,269,231/- in 2023 and significant losses over the past five years.

The company’s operations were heavily constrained, with 80 per cent of revenue directed to tax liabilities, leaving it unable to meet long and short-term financial obligations.