Prime
CRDB Bank, CitiBank Tanzania fail to execute Sh100 billion order
What you need to know:
- In October, the tribunal issued Garnishee order directing two local banks (CRDB Bank and CitiBank Tanzania) to restrict Sh100 billion from North Mara Gold Mine Limited’s account for execution.
Dar es Salaam. A ‘Garnishee order nisi’ and later Garnishee Order Absolute that was issued by the Tarime Land Tribunal to attach North Mara Gold Mine’s bank accounts after Miscellaneous Civil Application No. 108 of 2023 has not been effected, The Citizen has learnt
In October, the tribunal issued Garnishee order directing two local banks (CRDB Bank and CitiBank Tanzania) to restrict Sh100 billion from North Mara Gold Mine Limited’s account for execution.
In a correspondence addressed to the court, CRDB Bank's manager at Tarime Branch acknowledged receipt of the court's order.
However, they faced a significant hurdle: the account in question did not have sufficient funds to cover the entire decretal amount.
As of October 21, 2024, only Sh574,443.03 was available in the account, prompting the bank to restrict that amount instead.
To provide transparency in the matter, the bank’s branch manager attached a statement that The Citizen has seen detailing the account's transactions from October 18 to October 21, 2024.
The statement that the Bank’s Branch manager shared showed there was insufficient balance, therefore making it difficult to enforce the court’s decision.
At CitiBank, after receiving ‘Garnishee Order Nisi’ and the ‘Ganishee order Absolute’, a letter that The Citizen has reviewed was sent to the tribunal with one by the senior country operations officer stating that the account in question had not been funded whereas the other said there were insufficient funds in the account.
“We hereby notify your honourable tribunal that the mentioned account is not funded. So far we have complied with the order by placing a no debit status on the account,” wrote the senior country operations officer, CitiBank Tanzania.
The Tribunal then on November 8, 2024, ordered the Manager of CitiBank Tanzania to furnish it with a bank statement within an from the judgment debtor’s account from October 21 to November 6.
However, by the time of press the bank statement was yet to be received by the Tarime Land Tribunal. Sasi’s legal team is yet to comment on the latest development.
The orders were issued after the Tribunal upheld rulings by the previous courts that compels Barrick Gold North Mara Mine to pay Mr Augustino Nestory Sasi Sh100 billion as compensation.
“Whereas the above judgement debtor was ordered on September 27, 2023 by this tribunal before honorable Mahelele to pay the decree holder the sum of Sh100 billion, the said amount has not been paid,” reads the order in part.
The saga commenced in 2013 when Barrick North Mara Gold Mine surveyed Sasi's land, comprising parcels with reference numbers T-03747 and T-038558. Despite the survey, compensation owed to Sasi under government regulations was never paid.
In 2020, Sasi received a letter from the mine's general manager, citing delays in compensation payments without offering a clear explanation, as stipulated under GN.NO. 78/2003. In the letter, the manager said several others like him had not been paid.
Due to the lack of progress, Sasi sought legal representation in 2023, 10 years after his land had been acquired by Barrick North Mara Gold Mine.
The matter was initially brought before the Ward Tribunal of Kemambo for mediation in May 2023. After rigorous negotiations, a breakthrough was reached when both parties agreed to a substantial settlement of Sh100 billion in May 2023.
However, the euphoria of reaching a settlement was short-lived. Barrick North Mara Gold Mine, filed a revision case (No. 90/2023) in the District Land and Housing Tribunal of Tarime District a month later, seeking to overturn the agreement signed at the Ward Tribunal.
Sasi's legal team responded with an execution case (No. 108/2023) to enforce the agreed settlement, arguing vehemently against Barrick's attempt to backtrack on their commitments.
The legal arena became a battlefield of paperwork and arguments, with subsequent objections (No. 122/2023) and counter-objections further muddying the waters.
Amidst this legal tug-of-war, tribunal decisions came and went, each decision carrying significant financial and reputational implications for both parties.
In September 2023, the tribunal dismissed Barrick's revision attempt (case No. 90/2023) and subsequent objections (case No. 122/2023), ordering the mine to uphold the original settlement terms.
However, Barrick escalated matters to the High Court in Musoma, filing for revision (case No. 17/2023) and a stay of execution (case No. 83/2023) in October 2023.
The High Court summarily dismissed the two applications in November 2023, reinforcing the tribunal's earlier rulings.
