Mwananchi Credit blocked from selling seized lorries in Sh9.2m row

Mwananchi Credit blocked from selling seized lorries in Sh9.2m row

Mwananchi Credit has failed in its bid to lift a court order blocking the microlender from selling two lorries belonging to two traders, which were seized over a disputed loan.

High Court judge Kizito Magare upheld the injunction issued by a Milimani magistrate blocking the microlender from selling the two lorries — a Mercedes truck and a Scania lorry, which were attached in March 2021.

The court was informed that Peter Kamau Githua and Elizabeth Wanjiku borrowed a loan of Sh2.5 million and charged the lorries as security. The traders said they had repaid Sh3 million but the lender was still demanding more money.

Justice Magare noted that the traders had pleaded and demonstrated that it was likely that the entire debt had been paid.

Secondly, the judge said, Mwananchi Credit is not a mortgagor as the chattel mortgage (the loan used to purchase the vehicles and which served as security of the loan) was not registered, making the attachment void and the amount claimed fictitious.

“There is also a contention that a sum of Sh9,254,767 is outstanding as per the records held by the appellant (Mwananchi). I am not a student in sorcery and magic, but I am unable to fathom the labyrinth or mathematical permutations and flagrant distortion of figures that caused a sum of Sh2,500,000 to become Sh9,254,767.24 despite payment of three million shillings,” the judge said.

The court was informed that the repossession of one of the lorries was made in a gangster-like move.

“If we are to let our microfinance fall into the same school as the shylocks, the court will be missing its duty,” said the judge.

The microlender moved to the High Court after the lower court blocked the sale arguing that there was a valid claim and that it had been registered.

But the traders maintained that they had paid all amounts due.

Ms Wanjiku said in an affidavit that one of the lorries was involved in an accident but they continued paying the loans.

In March 2021, the lender attached one of the vehicles and threw out the driver on the transit claiming a balance of Sh9.2 million.

Senior principal magistrate D.W. Mburu then granted the injunction in October 2021, pending the determination of the case.

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The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.

The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.

The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.

“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.

“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”

Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.

It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.

But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.

Tanzania operates KLM alongside the national carrier.

The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.

A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.

Two more to the list

The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.

The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.

Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.

Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).

Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”

In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).

“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”

Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.

Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).

The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.

“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”

Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.

For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.

The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.

Source: allafrica.com

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