Senior advocate decries defendant’s remarks in $195m lawsuit

TANZANIA: HIGH Court senior advocate Michael Ngalo has stated that it is the court’s prerogative to determine whether a case has merit or not.

Mr Ngalo said in a telephone interview yesterday that dismissing a suit and court proceedings before their conclusion is, from a legal standpoint, unjustified.

He made the remarks in relation to the $195-million lawsuit filed by Pula Group and Pula Graphite Partners against Patrice Motsepe and his associated companies for allegedly breaching a non-compete clause in an agreement signed between the two parties.

A non-compete clause is a legal agreement that restricts an employee from working for a competitor or starting a similar business after leaving their job.

Reacting to comments made by Motsepe, Pula Graphite Chairperson and former US Ambassador to Tanzania, Charles Stith, condemned the dismissal of the suit and court proceedings by the Chairperson of African Rainbow Minerals (ARM).

“I was stunned that Patrice would attack the suit and court proceedings in such a derogatory manner. For him to describe the main suit filed by Pula as ‘rubbish and absurd’ is simply unbelievable. At the very least, he owes an apology.”

“Mr Motsepe was quoted during the Annual General Meeting (AGM) of his company, African Rainbow Minerals (ARM). He should be more careful when discussing financial matters, ensuring that he presents balanced facts concerning the company,” Mr Ngalo added.

He reiterated that only the court has the authority to make decisions on any application, proceeding, or hearing and that ultimately, the court will determine whether to dismiss the case or rule in favour of the aggrieved party.

The High Court (Commercial Division) has consistently ruled in favour of Pula Graphite Partners, dismissing all objections raised against the suit.

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When asked by a shareholder about the lawsuit and the ruling, Motsepe described them as “rubbish” and “absurd”.

However, the High Court (Commercial Division) is set to deliver a ruling on further appeals in February next year.

Pula Group and Pula Graphite Partners filed the $195-million lawsuit last year against Motsepe and his associate companies, accusing them of violating a non-compete clause in the agreement signed by the two companies.

Billionaire Patrice Motsepe, who chairs ARM, criticised the Tanzanian firm Pula Graphite Partners for initiating the $195m (R3.4bn) lawsuit against his company, dismissing it as groundless and nonsensical.

The lawsuit was filed after Pula Graphite, which is owned by Charles Stith, the former US Ambassador to Tanzania, accused ARM and its sister company African Rainbow Capital Holdings (ARCH) of breaching a confidentiality agreement regarding a proposed joint venture to develop a graphite mine in eastern parts of Tanzania.