RETIRED Brigadier General, Ambassador Francis Mndolwa, has been sued at the Kisutu Resident Magistrate’s Court in Dar es Salaam, Tanzania for failure to repay over 60m/- loan facility advanced in 2015 by Bank of Africa Tanzania Limited (BOA).
The former Tanzanian Ambassador to Burundi is being sued alongside Viettel Tanzania Limited, trading as Halotel, a mobile communications company, which had provided guarantee to him to obtain the loan in question.
The parties appeared before Resident Magistrate Godfrey Mwambapa yesterday where Justine Magafu, the advocate for the bank, informed the court that they had already received a witness statement from Ambassador Mndolwa, the first defendant only.
Counsel Fatuma Seif, for Viettel, the second defendant, said his client’s witness statement had already been filed in court. The case was adjourned to July 19, for pre-trial conference to assess completeness of filing the pleadings, which are necessary documents enabling the court to determine the matter.
In the suit, BOA, the plaintiff, claims against the defendants, jointly and severally, for payment of 61,934,321/05 being outstanding balance of personal loan facility, unpaid instalments and direct interest penalty as at March 13, 2017.
In December 2015, through a facility letter, the plaintiff allegedly offered to Ambassador Mndolwa personal loan amounting to 70m/- and was duly accepted by him on December 10, 2015. The loan was secured by his gratuity and a letter of comfort dated October 30, 2015 issued by Viettel, as his employer.
The plaintiff claims that it was a clear term of contract that the lender shall charge interest of 18 per cent per annum and the said credit was to be repaid within 36 months in equal monthly instalments to be paid on or before the 28th every month.
According to the plaint of the suit, it was further agreed that in the event the defendant fell in arrears, there would be a charge of penalty interest of 10 per cent above the highest rate of interests. In the comfort letter, Viettel had undertaken to ensure his employee’s salaries would be paid through the bank.
“The plaintiff disbursed the entire loan to (Ambassador Mndolwa) as per the agreement and (Viettel) was immediately informed to observe its obligation under the letter of comfort. (Amb. Mndolwa) did not observe the terms of agreement whilst (Viettel) breached some of the terms of its letter,” it is stated.
As a result, the plaint of the suit further states, the plaintiff was forced to issue demand letters to the defendants. Despite the plaintiff disbursing the amount to Ambassador Mndolwa and utilising the facility, the latter has failed or refused to pay back the loaned sum as per the agreement.