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March 2015 DailyNews; A SOUTH African Company operating AMI Hospital or Trauma Centre at Msasani area in Dar es Salaam, African Medical Investment Tanzania Public Limited, is bankrupt and has surrendered to the High Court to be wound-up.
In a petition filed last week before the High Court’s Main Registry, the company alleges that it has been incurring losses in terms of billions to the extent of having several outstanding liabilities and debts which are now exceeding its ability to pay to different creditors.
“The petitioner (African Medical Investment Tanzania Public Limited) incurred a net loss of 1.146 million US dollars in the year ended February 28, 2013, while in the year ended February 28, 2014, the petitioner incurred a net loss of 775,000 US dollars,” reads a section of the petition document.
It is stated that the company was also required to pay outstanding dues to institutes, notably the National Social Security Fund (NSSF) and the Tanzania Revenue Authority (TRA) and individuals as well as depositing with the courts substantial amount of money.
According to the petition, given the value of the assets of the company and the amount of money owed to it by creditors, there was no way it would be able to raise enough funds for paying them as well as meeting her obligations.
“The petitioner is anxious that unless winding up is done by the court for the purposes of protecting all creditors, there will be no fair and just repayment of the debts by using available assets, which might be taken by few creditors leaving others with nothing although are of same legal status,” it is stated.
African Medical Investment Tanzania Public Limited alleges that the winding up order by the court would accordingly protect all categories of creditors and ensure that winding up is fairly, justly and equitably conducted.
The new action by the company is, however, described as an attempt to circumvent a resent Court of Appeal order for a deposit into court 3bn/-in favour of local businessman Navtej Singh Bains, following a tenancy agreement dispute in respect of a building where the company is conducting its business.
Justices Mbarouk Mbarouk, Salum Massati and Katherine Oriyo further directed the company to deposit into court a monthly rent to the tune of 64,000 US dollars, pending determination of an appeal it had lodged against the judgment issued by the High Court’s Commercial Division on September 9, last year.
When reached for comment on the new development, advocate Dilip Kesaria for the businessmen said that he was not opposing the petition, though indeed his client would be affected if the High Court grants requests for winding up the company.
The local businessman built and designed the building for hospital business on Plot No. 589 Yatch Club Road, Coral Lane, Msasani Peninsular in Dar es Salaam under which the South African company, after settling in Tanzania to do business, agreed to rent the premises in question for the purpose.
It was alleged that the modality of payment of rent was that the first two years the South African company would pay 33,000 US dollars per month payable every six months in advance.
Then for the third year would pay 36,300 US dollars per month payable in 12 months in advance. Furthermore, it was agreed that the company would pay 39,930 US dollars per month for the fourth year payable in 12 months in advance. Before expiration of the said lease on December 31, 2012, the businessman made several attempts to have the lease renewed.
However, it is alleged that the company employed delaying tactics. The company paid the rent in piece meals in the fourth year contrary to the lease agreements and on two occasions, some of its cheques were dishonoured by its bankers.
