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Local firm sues FBME for USD1m damages
2008-03-27 09:08:21
By Rosemary Mirondo
A rivate company, Sanasi Freight Express Limited has filed a suit against the FBME Limited, demanding USD1m in damages for breach of contract, lawfully disclosing financial affairs, causing financial loss, and lowering the latter`s reputation and image.
In a case filed at the High Court in Dar es Salaam and presided over by Judge Robert Makaramba, the company also accuses the bank of illegally releasing its cheque books to what it calls strangers without its consent.
The company`s managing director, Mazhar Hussein Khan, alleged in the plaint of the suit that disclosure of cheque books amounted to professional misconduct.
Evidence tendered in court stated that the bank disclosed secrecy to strangers and therefore breached, among others, terms of the contact, caused serious financial loss to the company.
Sanasi is accusing the bank of terminating the contract the company had signed with a construction company, UNICO, thus injuring its reputation and image.
The company opened an account at the bank after the duo held a meeting on October 28, 2005, wherein the latter was required to honour all cheques or other orders for payment drawn on behalf of the former, including bills and promissory notes.
It was further alleged that at the time of opening the account, they were provided with a list of names of directors, secretary and other officers of the company and any changes of such names were to be communicated in writing and the bank would act upon such changes.
It was also alleged that after opening the account, the company never collected cheque books from the bank, but got only credit cards. On July 25, last year, the company received a letter from Millennium Law Chambers (Advocates).
The letter concerned two dishonored cheques for total value of USD8,790 allegedly issued by two persons who identified themselves as officers from the company to purchase a number of items from MF1 Office Solutions Limited.
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