The High Court yesterday placed the Independent Power Tanzania Limited (IPTL) under receivership, pending determination of winding up proceedings by its minority shareholder, VIP Engineering and Marketing Limited, the Daily News reported. Judge Katherine Oriyo appointed the Administrator General as provisional liquidator of the country’s giant electricity generating company with immediate effect after granting an application filed by the VIP Engineering Company. The liquidator has 14 days to conduct investigations and file a state of affairs’ report before the court. There have been several complaints raised by the VIP Engineering Company and primary shareholder Mechmar Corporation over promotion, formation and mismanagement of company funds. Judge Oriyo considered four principles: whether the liquidator should be appointed, including examining the degree of urgency, the need established by the applicant, the balance of convenience and the public interest. The liquidator will preserve the company from further deterioration,” Judge Oriyo said. The VIP Engineering Company has accused Mechmar Corporation of misappropriation of funds. Read more.
