JOHANNESBURG, South Africa-A dispute between MSI/Detecon and the Tanzania government concerning the network operator the Tanzania Telecommunications Company Limited (TTCL) is said to be widening as the two parties review their agreements in respect of the 35-percent stake held by MSI/Detecon.
The investor has reportedly sought a court injunction in London to restrain the Tanzanian government from taking any further steps in respect of a February 2001 agreement reached between the two shareholders.
Andrew Chenge, Tanzania’s attorney general, said that the injunction by the London court is invalid unless endorsed by a local court.
Tito Alai, MSI marketing director, said the consortium had not gone to court concerning the payment of the second tranche, but to protect the shareholders. The first tranche was US$60 million, and the second was an equal amount, totaling US$120 million for the 35-percent stake in TTCL. The first tranche was given back to MSI/Detecon last year as part of Tanzania’s contribution to the development of the network.
Alai said: “We are not in court over the payment of the second tranche, which could be anything from zero to US$60 million. We have placed an injunction to freeze the shareholding position until negotiations over the second tranche are completed.”
“We have taken this step because of our concern that some of the individuals involved on the government side were not acting in good faith and were preparing to put MSI into an unreasonable position that would inevitably lead to a breakdown in the process and would open the possibility of a seizure of MSI shares,” Alai added.
