The Citizen (Dar es Salaam)
Ray Naluyaga
1 July 2009
The stage is set for a bruising battle over planned investments worth billions of shillings at a cultural centre in downtown Dar es Salaam, established with the blessings and support of founding President Mwalimu Julius Kambarage Nyerere.
The board of management of Nyumba Ya Sanaa and Culture Limited, a performing arts, cultural exhibition and entertainment facility at the junction of Ohio Street and Ali Hassan Mwinyi Road in the heart of the city, has been split by the privatisation venture.
The conflict pits a group led by the chairman of the Board of Directors, Mr Alipo Antunkolepo, against another allied to fellow board member Barnabas Lyimo, the Principal Economist in the Ministry of Industries and Trade.
The two groups are reportedly backing different private companies keen to enter into a joint venture with the centre to build a 25-storey complex at the upmarket plot valued at billions of shillings.
Currently, there are only a few temporary buildings, including a bar at the centre, where occasional cultural performances and exhibitions are held. It is located adjacent to MovenPick Hotel.
Mwalimu Nyerere allocated the plot for the establishment of the centre several decades ago to promote culture through performances and exhibitions. It was then registered as a company by guarantee with the board holding trust for the public.
Investigations by The Citizen over the past week have revealed that each of the groups is rooting for a different company to execute the joint venture.
Their differences are threatening to spark an all-out war that could derail the project altogether, allegations of serious bribery and corruption being bandied about.
An attempt by one of the groups to block the other from accessing the centre's bank account was reversed after the rivals sought court intervention.
Last week, Mr Lyimo placed an advertisement in the newspapers, alleging theft of Nyumba ya Sanaa's title deed and the company's seal.
But speaking to The Citizen, Mr Antunkolepo dismissed the adverts, asserting that the title deed and seal were safe in his custody and that Mr Lyimo was aware of that.
"Saying the title deed has been lost is a concoction of facts because Mr Lyimo knows very well that it is the chairman of the board of directors who removed them from Nyumba ya Sanaa," he said.
But contacted for comment, Mr Lyimo said: "I do not know (where they are) and that's why I issued the advertisement. In practice they are supposed to be at the registered office of the company, but as we speak, they are not there."
But in interview last week, Mr Antunkolepo said the disagreement between him and Mr Lyimo arose on June 26, when the former allegedly refused to sign a joint venture agreement between Nyumba ya Sanaa and a city-based company.
Mr Antunkolepo said he was opposed to the deal because it was not in the best interests of Nyumba ya Sanaa Limited.
He said the draft agreement shown to him by Mr Lyimo did not contain provisions for an alternative accommodation for the centre. He said that provision was given as a pre-condition for the management to enter into any agreement with prospective developers.
"There are activities going on there at the centre and yet the joint venture agreement, which Mr Lyimo wanted to enter into with the private company was going to leave us without a roof over our heads," the chairman said.
The developer, he said, would immediately take possession of Nyumba ya Sanaa premises and begin the construction without saying where the centre's activities would be shifted to.
Another condition which the chairman disagreed with was the structure of ownership after the said development. According to the agreement, the city firm would put up a 10-storey building, with Nyumba ya Sanaa getting an 18 per cent stake in the new property.
"There were other five developers who have also indicated their interest and with better terms. About three of them have offered to build a 25-storey building with 25 per cent ownership going to Nyumba ya Sanaa. Why would anyone prefer a different offer?" he asked.
Mr Antunkolepo, who is a lawyer, claimed he had been offered millions of shillings in bribes but he had declined. His claims could not be independently established.
"I have been coaxed to collect Sh40 million in bribes but why would one want to do this?"he asked, showing The Citizen a copy of a note he claimed was from unidentified people who wanted to bribe him.
According to the Articles of Association of Nyumba ya Sanaa, the chairman said, the agreement purportedly entered into by his rival was invalid as Article 50 required that the common seal of the company must be affixed.
"The article asserts that the common seal of the company shall only be affixed in the presence of a director and a company secretary or two directors of which this agreement was sealed by a director and a general manager of the company," he said.
He said he had found another developer and a valid joint venture agreement was signed between them and Nyumba ya Sanaa Limited.
"The following day the developer, whom I prefer not to name at this stage, remitted an instrument worth Sh122 million, and the following day remitted Sh23 million as the first instalment of Sh290 million to help us find an alternative accommodation during the time of development and payment of salary areas and other bills," he said.
In the presence of other members of the management team, he said, he notified Mr Lyimo, who the following day wrote to Nyumba ya Sanaa's bank, asking that the account be suspended. He said the bank suspended the bank account, threatening to derail Nyumba ya Sanaa operations.
"We had to go to the court and a judgment was given in our favour instructing the bank to release the account and restraining Mr Lyimo, his agent or associate from directing and administrating operations of Nyumba ya Sanaa," he said. The chairman said Nyumba ya Sanaa was considering filing contempt of court charges against Mr Lyimo.
For his part, Mr Lyimo said he was in contact with his lawyers and was not aware whether he was in contempt of the court.
Centre general manager Saria Mauky could not give details when approached and said only his chairman was authorised to speak to the media.
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