By Mark Finlay
The authorities in South Africa have decided to impound an Air Tanzania Airbus A220 at Johannesburg Oliver Tambo International Airport.
The aircraft with registration number 5H-TCH was operating on the regularly scheduled TC208 flight to Johannesburg, but did not operate the return leg flight number TC209 to Dar es Salaam.
Following the seizure of the plane Air Tanzania issued a statement on Twitter saying:
Dear Customers, Due to unforeseeable circumstance, Air Tanzania profoundly regrets to inform you that we expect flight schedule adjustments.
We sincerely apologize for all inconveniences this might cause to your travel plans.”
A retired farmer, Hermanus Phillipus Steyn, has said the aircraft was impounded because Tanzania's government had not paid him $33m (£28.8m) it owes in compensation.
Wakefield of Werksmans Attorneys said his client, an elderly farmer was owed $33-million -- including interest -- in compensation from the Tanzanian government after his land in the country was expropriated several decades ago.
The farmer was subsequently awarded the compensation in an arbitration, he said.
The lawyer said the only way Tanzania could secure the release of the plane was if it put up security or paid the debt.
He said the plane was impounded in line with South African and international laws allowing for an asset owned by a foreign entity to be attached to a case related to a foreign arbitration award.
The plane was chosen because there is evidence it is owned directly by the Tanzanian government and its value is commensurate with the amount owed to the farmer, who was born in Namibia, he said.
While the Tanzanian government has acknowledged it owes the farmer money, has previously made some payments and promised to pay the rest, it has not made a payment since around 2014, Wakefield said.
The development comes hot on the heels of the SADC Summit held in Dar es Salaam and a state visit by South African President Ramaphosa but did not stop a South African court to issue an order against Air Tanzania and have the aircraft impounded.
We sincerely apologize for all inconveniences this might cause to your travel plans.”
A retired farmer, Hermanus Phillipus Steyn, has said the aircraft was impounded because Tanzania's government had not paid him $33m (£28.8m) it owes in compensation.
Lawyer Roger Wakefield told our reporter that the money was awarded after Tanzania's government seized lands belonging to the South African farmer.
Wakefield of Werksmans Attorneys said his client, an elderly farmer was owed $33-million -- including interest -- in compensation from the Tanzanian government after his land in the country was expropriated several decades ago.
The farmer was subsequently awarded the compensation in an arbitration, he said.
The lawyer said the only way Tanzania could secure the release of the plane was if it put up security or paid the debt.
He said the plane was impounded in line with South African and international laws allowing for an asset owned by a foreign entity to be attached to a case related to a foreign arbitration award.
The plane was chosen because there is evidence it is owned directly by the Tanzanian government and its value is commensurate with the amount owed to the farmer, who was born in Namibia, he said.
In the 1980s, Tanzania's government nationalised a massive, privately-owned bean and seed farm, seizing everything including equipment, 250 cars and 12 small planes.
While the Tanzanian government has acknowledged it owes the farmer money, has previously made some payments and promised to pay the rest, it has not made a payment since around 2014, Wakefield said.
The development comes hot on the heels of the SADC Summit held in Dar es Salaam and a state visit by South African President Ramaphosa but did not stop a South African court to issue an order against Air Tanzania and have the aircraft impounded.
This means that the aircraft, unless the order of the High Court is overturned, could be held in Johannesburg for the forseable future.
The development comes at a critical time for Air Tanzania as the airline only very recently launched their flights to Johannesburg again, now leaving passengers stranded and struggling to either get home or to their destination.
As usual in Tanzania has none of the state controlled nor private media dared so far to report on the matter, clearly fearing the implications for their staff and business.
A statement from the Tanzanian government that read: “The plane was impounded following an order issued by the Gauteng High Court in Johannesburg in a case that is not clear.”
Confirming that it was, in fact, an Airbus A220 that had been seized,” ATCL managing director Ladislaus Matindi told Reuters, “I can confirm that the impounded plane is an Airbus. The government has not released more details on why the plane was seized.”
“We have made arrangements for the passengers to board on another plane to resume their flight.”
All of Air Tanzania’s fleet has been put under the ownership of the Tanzanian Government Flight Agency (TGFA) to avoid the possible confiscation of the aircraft due to previous Air Tanzania debts to suppliers.
It would appear that this strategy has not deterred debtors from getting a court order to seize the A220 when it landed in Johannesburg.
The East African nation’s biggest foreign exchange earner is its tourism sector which has made the government think that by revitalizing Air Tanzania more tourists will visit the country.
The move comes barely two months after Air Tanzania opened its service to South Africa.
Tanzania's President, John Magufuli, has led attempts to revive the state-owned airline, hoping to boost tourism and turn the country into a major transportation hub.
It had just one plane when the president was elected in 2015. Since then, millions of dollars have been spent on the purchase of eight new aircraft.
But the carrier is battling several multi-million dollar lawsuits with its former suppliers.
According to aviation website One Mile at a Time the aircraft was impounded due to a $4.1million unpaid loan.
Apparently, the unpaid loan dates back to an earlier partnership agreement between South African Airways and the Tanzanian national flag carrier.
This is also not the first time Air Tanzania has had a plane seized.
In 2017, Canadian construction firm Stirling Civil Engineering seized the airline's new Bombardier Q400 plane in Canada over a $38m lawsuit.
The Q400 was released in March 2018 after Tanzania's prime minister, Kassim Majaliwa, and attorney general negotiated its release.
No details were given about the terms of the settlement. - Africa
Confirming that it was, in fact, an Airbus A220 that had been seized,” ATCL managing director Ladislaus Matindi told Reuters, “I can confirm that the impounded plane is an Airbus. The government has not released more details on why the plane was seized.”
“We have made arrangements for the passengers to board on another plane to resume their flight.”
All of Air Tanzania’s fleet has been put under the ownership of the Tanzanian Government Flight Agency (TGFA) to avoid the possible confiscation of the aircraft due to previous Air Tanzania debts to suppliers.
It would appear that this strategy has not deterred debtors from getting a court order to seize the A220 when it landed in Johannesburg.
The East African nation’s biggest foreign exchange earner is its tourism sector which has made the government think that by revitalizing Air Tanzania more tourists will visit the country.
The move comes barely two months after Air Tanzania opened its service to South Africa.
Tanzania's President, John Magufuli, has led attempts to revive the state-owned airline, hoping to boost tourism and turn the country into a major transportation hub.
It had just one plane when the president was elected in 2015. Since then, millions of dollars have been spent on the purchase of eight new aircraft.
But the carrier is battling several multi-million dollar lawsuits with its former suppliers.
According to aviation website One Mile at a Time the aircraft was impounded due to a $4.1million unpaid loan.
Apparently, the unpaid loan dates back to an earlier partnership agreement between South African Airways and the Tanzanian national flag carrier.
This is also not the first time Air Tanzania has had a plane seized.
In 2017, Canadian construction firm Stirling Civil Engineering seized the airline's new Bombardier Q400 plane in Canada over a $38m lawsuit.
The Q400 was released in March 2018 after Tanzania's prime minister, Kassim Majaliwa, and attorney general negotiated its release.
No details were given about the terms of the settlement. - Africa
No comments:
Post a Comment