Samia right about judiciary speeding up disposal of civil cases

By Finnigan Wa Simbeye

One of the most important factors which private investors want in a market is a working judicial system free from corruption and laxity.

Many investors, both local and foreign, will comfortably put their money in huge projects if they are guarantee of recouping their capital plus some profit. But executing an investment project in a market or country like Tanzania involves dozens of institutions and individuals who have various interests and behaviours which sometimes lead to legal tussles.

Last week while addressing the judicial system’s top brass led by Chief Justice, Professor Mohamed Ibrahim Juma, and President Samia Suluhu Hassan called on judges and magistrates to speed up disposing cases.

President Samia whose government has championed economic diplomacy and the attraction of both local and foreign private investors to put their money in various sectors of the country, bemoaned that in some instances, disposal of cases including civil cases has taken more time than necessary.

“It has come to my attention that concerns exist around delays and lengthy processes.

These delays, particularly in commercial cases, can significantly hinder investment progress.

For instance, a typical commercial case takes an average of 12 months in the district court, and this timeframe extends to 24 months when it comes to the High Court.

“This is simply unacceptable,” the president said during the climax of this year’s Law Day.The Head of State further explained that work is underway to reform the civil justice system with focus on prioritising commercial cases hence address one of the major concerns by private investors.

In my professional capacity as a business journalist, I came across and indeed followed up on two cases which align well with President Samia’s concerns. In 2015, a Turkish investor, Aydin Logistics Tanzania Limited filed a civil case No.

4 against Gagaja Contractors Company Limited of Dar es Salaam over an unpaid U$ 250,000 (almost a billion shillings) for a brand new excavator acquired on loan in 2014.In what can be described as a timely execution of the case, High Court Judge WP Dyansebera ruled in July 2016 against Gagaja Contractors but the ruling was later overturned by Judge DR Magutu in October 2016 on technical grounds.The case then got stalled frustrating the Turkish investor who got fed up and packed his bags and left in 2020 saying, among other things, the slow pace by the judiciary was discouraging.

Aydin Logistics had already invested over U$30m by then and was in a process of investing more at Dar es Salaam port.Another case which I also followed up involves National Development Corporation against International Medical and Technological University based at Mbezi Beach Makonde area.

IMTU Indian investors filed a case against NDC seeking a High Court order to stop the state owned enterprise from demanding rent payment for the former Saluji premises where the university operates from and includes a hospital.

 In February 2018, High Court Judge for Land Division, Moses Nzuna, ordered IMTU and Registered Trustees of Vignan Educational Foundation Bangalore to pay 2.6bn/- as backlog for rental fees to NDC.

The Indian investor quickly filed for an appeal that is still drugging at the High Court to date.In his ruling, Judge Nzuna said although IMTU was indeed supporting the government of Tanzania’s efforts to train more medical personnel and that the Bangalore based not for profit institution was promised free premises by the Tanzania government, the fact remains that its investments in Dar es Salaam were yielding profits.

“We appreciate much, as the IMTU has conferred degrees to many Tanzanian doctors who graduated from the university, however, upon being fully fledged, the plaintiff must pay rent so that even the government must benefit from collected tuition fees,” Justice Nzuna argued in his ruling of February 27, 2018.These two cases shade some light on how judges especially involved in appeal cases can take their time in disposing cases, a concern which both the president and the public have.

In this regard, the first case involves a foreign investor defrauded by a local businessman while in the second instance, it’s the foreign investor who happens to be assailing a public company. The judiciary’s role, as President Samia clearly stated is that of dispensing justice as efficiently as possible so that the country’s image as an investment destination of choice, both by Tanzanians and foreigners alike, remains so.

“What I want to re-emphasise is the acceleration of the hearing of commercial cases.

When we attract investors, it brings about legal issues and commercial disputes.

It is good for our courts to give importance to this type of case as well,” the Head of State stressed while commending Prof Juma’s leadership for managing to address case delays but also for implementing mediation measures to stop cases from going to chamber stage unnecessarily. She urged judges and magistrates to adhere to Article 107(a) subsection (2) (a-e) of the Tanzanian constitution, which prioritises justice for all and the avoidance of delays and excessive technical conditions.

The writer is media consultant and book author based in Dar es Salaam. He can be reached on [email protected] .