Court summons DIB director over 145bn/- decree settlement

DAR ES SALAAM: THE High Court in Dar es Salaam has, once again, summoned the Director of Deposit Insurance Board (DIB), Mr Isaack Kihwili, to explain the status of execution of the court’s decree for payments of 145bn/- in favour of Coast Textile Limited.

Mr Kihwili was on Wednesday supposed to show up before the court, but could not, a move which prompted heated arguments from the lawyers representing the two parties over such non-appearance.

State Attorney Edwin Wediro told Deputy Registrar in Charge of the High Court, Dar es Salaam Zone, Mary Moyo that Mr Kihwili had responded to the court summons and was in court since morning before leaving the premises for other official duties.

Advocate Joseph Rutabingwa, for Coast Textile Limited, refuted such line of argument, submitting that the known procedure required the DIB Director to appear before the court and not moving around corridors.

“This court issued the order and I personally served upon him (Mr Kihwili). He was required to appear before the court, which is before you today, but he is not here. This amounts to disobedience of the court order,” the lawyers submitted.

ALSO READ: DIB reveals reasons behind 145bn/- payment delay

The Deputy Registrar noted the absence of the DIB Director and directed the parties to appear before Judge Salma Maghimbi for a hearing on the execution proceedings set for October 30, 2024.

In the previous session, the State Attorney informed the court that the US government has promised to release funds owed to FBME Bank Limited by December 2024. This includes payments to all creditors, who are collectively owed 145bn/-, a claim dating back nine years.

The State Attorney explained that the DIB Director has communicated with the US Embassy regarding the possibility of lifting sanctions on FBME Bank’s funds, which have been withheld by American authorities due to suspicions of money laundering.

Furthermore, the State Attorney reported that the DIB Director and the Liquidator of FBME Bank in Cyprus recently met to discuss various matters, including updates on the ongoing liquidation process.

He added that a group of depositors is expected to receive 70 per cent of their claims by September 2024, although he clarified that Coast Textile Limited will not be among the beneficiaries of this distribution.

Coast Textile Limited is seeking the court’s intervention after FBME Bank, whose operations were taken over by the Bank of Tanzania (BoT), failed to implement a judgment issued by Judge Aloysius Mujulizi in 2015.

The company has applied for execution of the judgment, requesting that the sum of 145.94bn/- be realised from the DIB and the liquidators of FBME, holding the Board Director accountable for any defaults.