Annual general report of the controller and - Parliament of Tanzania
Annual general report of the controller and - Parliament of Tanzania
Annual general report of the controller and - Parliament of Tanzania
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S/N Borrower Anomalies<br />
1. Kilimanjaro Bazaar -<br />
TShs 105 M at 31%<br />
p.a<br />
(1990,1991,1992)<br />
2. Mbowe Hotels<br />
Limited - Tshs 15 M<br />
at 31% p.a <strong>and</strong> 12%<br />
p.a (1994,1999)<br />
3. Emunio <strong>Tanzania</strong><br />
Limited- USD 1.86 M<br />
at 8% p.a USD (2004)<br />
4. Ubungo Plaza<br />
Limited (UPL) - Tshs<br />
1,284.2 M at 10%<br />
p.a (2004)<br />
5. Kagera Sugar<br />
Company Limited-<br />
Tshs 12 Billions at<br />
10% p.a (2004,2005)<br />
6. General Tyre East<br />
Africa – USD 10 M at<br />
6% p.a (2005)<br />
7. Continental<br />
Ventures(T) Limited<br />
– USD 3.5 Millions<br />
(2005)<br />
The borrower won <strong>the</strong> case after<br />
NSSF sued for default <strong>and</strong><br />
<strong>the</strong>reafter NSSF was instructed to<br />
pay Tshs 600 Millions. NSSF<br />
appealed on 27/2/2007 <strong>and</strong> until<br />
April 2008 <strong>the</strong> hearing was yet to<br />
start.<br />
The borrower defaulted <strong>and</strong> <strong>the</strong><br />
Fund was forced to opt for<br />
litigations which have not yet<br />
realized <strong>the</strong> success.<br />
The borrower failed to pay <strong>and</strong> it<br />
was latter found that <strong>the</strong> company<br />
is in process <strong>of</strong> restructuring <strong>and</strong><br />
negotiation with <strong>the</strong> strategic<br />
investor to enable fur<strong>the</strong>r equity<br />
some <strong>of</strong> which will be used to<br />
repay NSSF loan.<br />
The schedule <strong>of</strong> repayment was<br />
letter changed to take into account<br />
<strong>the</strong> financial position which now<br />
will repay loan to March 2010<br />
The Borrower has failed to service<br />
its loan as a result <strong>the</strong> interest has<br />
accumulated to Tshs 5,624.29<br />
Millions as at 30 th May 2008. The<br />
Government proposed <strong>and</strong> <strong>the</strong><br />
lender agreed to waive <strong>the</strong> accrued<br />
interest by 55% <strong>and</strong> <strong>the</strong> balance<br />
capitalised<br />
Default notice has been sent to<br />
borrower<br />
Borrower has failed to service its<br />
obligations<br />
8. Katani limited- USD Borrower has failed to service his<br />
___________________________________________________________<br />
Office <strong>of</strong> <strong>the</strong> Controller <strong>and</strong> Auditor General PA&oBs 2007/08 186
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