SA seizes Air Tanzania plane over unpaid farm claim

SA seizes Air Tanzania plane over unpaid farm claim

Air Tanzania plane.

Tanzania said it was working to secure the release of the seized plane which is valued at about $90 million.

A Namibian-born Tanzanian farm owner has had a plane belonging to Tanzania’s national carrier seized over his $33-million (about R500 million) compensation claim for his land, which the Tanzanian government nationalised decades ago, a lawyer said yesterday.

The Air Tanzania aircraft was seized on Friday at Johannesburg’s OR Tambo International Airport after it landed during a scheduled flight from Tanzanian economic capital Dar-es Salaam.

Lawyer Roger Wakefield said the seizure followed an order granted by the High Court in Johannesburg on Wednesday.

In the ’80s, Tanzania’s government nationalised a massive, privately-owned bean and seed farm, seizing everything, including equipment, 250 cars and 12 small planes.

The farm owner, whom the lawyer refused to name, was awarded $33 million in compensation in the ’90s – but the government only paid $20 million.

The outstanding balance of $16 million has accrued interest over the decades and now stands at $33 million, according to the lawyer who specialises in cross-border disputes.

The farmer has been fighting for years to get the outstanding amount. He was then declared a prohibited immigrant in Tanzania on what his lawyer called “baseless grounds”, and he now lives in another East African country.

The farmer approached lawyers in South Africa, which is party to an international convention on the recognition and enforcement of foreign arbitration awards.

“Literally after decades of broken promises, promises to pay, acknowledging the indebtedness, the plaintiff was left with no option,” Wakefield said.

He said the plane was seized “to certify a long outstanding debt to the plaintiff, which the government of Tanzania has always acknowledged was owing but they just breached their undertaking”.

“The only way that the aircraft can now be released is if they pay the debt or if they put up security for the claim.”

Tanzania said it was working to secure the release of the plane. The seized Airbus is valued at about $90 million.

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