Dar es Salaam — The refusal by former National Investments Company Limited (Nicol) chairman Felix Mosha and CEO Kathleen Armstrong to hand over office is now blamed for causing the company losses running into tens of millions of shillings. Mr Mosha and Ms Armstrong, who currently lives and works in the US, were removed by shareholders from their positions during an extraordinary meeting in April 2012 over alleged misuse of Sh10 billion and performance failures and an interim management appointed.
However, the decision was followed by fierce boardroom wrangles and endless court battles after the two refused to hand over to the new management.
But in renewed efforts to compel them to surrender office, Nicol yesterday asked the Kisutu Resident Magistrate's Court to issue an order declaring that the two were liable for causing the company a Sh180 million loss.
They have also sought an order that the two to immediately surrender a motor vehicle and pay Sh158 million being the cost the company incurred in hiring another vehicle.
Nicol claims in the suit that the respondents' persistent and unjustified refusal to hand over office and assets, including a motor vehicle, has forced the firm to spend Sh14 million to hire another vehicle to enable the interim management discharge its duties.
Through advocate Benjamin Mwakagamba, the plaintiff claims that despite repeated demands that the vehicle be handed over, the defendants have refused to do so, prompting the management to purchase another vehicle for $38,000 (Sh83.6 million) and pay Sh58.4 million to clear it.
Nicol has also accused Ms Armstrong of unlawfully selling a Mitsubishi Canter light truck belonging to the firm to Tanzania Meat Company for Sh22 million despite not being authorised to do so.
"... as the consequence of the defendants' obstinate behaviour and acts of disorderly conduct, the plaintiff has seriously suffered damages and loss arising from the failure to fulfil its obligations and timely discharge its contractual commitment," reads part of the plaint.
Yesterday, Senior Resident Magistrate Respicius Mwijage ordered the defendants to file a written statement of defence by December 20 before the matter comes up for mention on January 18. Mr Mosha and Ms Armstrong are being defended by Mr Hubert Nyange.