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| Mr Mosha |
A year after the National Investment Company Limited (Nicol) grappled
with legal predicaments to save itself from total collapse, it has emerged and
assured its shareholders that their investments were safe.
The public company, last week
saw the High Court rule in its favour by squashing claims by the Capital
Markets and Securities Authority (CMSA).
They include lifting the removal of the Nicol board and chief executive
officer, the unfreezing of Nicol’s bank accounts, and that CMSA should conduct
its activities in accordance with the law.
Speaking to reporters in Dar es Salaam, Nicol chairman, Mr Felix Mosha,
without stating the exact amount, said that the CMSA as actions that led to Nicol being shutdown
for a full year had worsened the losses
the company had posted in it to pave the way forward.
However, he vowed that Nicol would emerge stronger from the crisis as
it proceeds to re-build itself under more stable conditions.
“Shareholders should be assured that Nicol remains a strong and viable
company with its 46,631 members…investments of shareholders are safe,” he said.
He added that the court ruling would
pave the way forward an opportunity for the company to build a proper
working relationship with CMSA from experience both have gained as a result of
the crisis.
However, in a quick rejoinder, the CMSA's public relations manager, Mr
Charles Shirima, said the authority was yet to receive a court ruling statement
for it to draw position to take.
According to Mr Mosha, the first move by Nicol’s board will be to
organise an annual general meeting during the next two months to give the
shareholders an opportunity to determine the best direction to in its long term
growth strategy, including option of returning to the bourse.
Despite the losses that the company is yet to quantify, he said, the
original investment of 11.7bn/- has grown over a decade to about 30bn/- with
over 80 per cent of it in Nicol National Microfinance Bank (NMB) shares.
The filing of the suit came five months after CMSA wrote to CRDB, NMB
and Exim banks instructing them to block any cash outflows from its accounts to
protect the interests of Nicol’s investors.
According to Nicol, the freezing of its bank accounts halted its
operations and risked expulsion from its Raha Tower building offices over
failure to pay US $ 42,000 (63m/-) in rent.
CMSA had, between December 2010 and January 2011, carried out investigations
into Nicol activities and uncovered massive irregularities, including failure
to maintain proper accounts.
Source: The Citizen,www.thecitizen.co.tz, reported by Al-amani Mutarubukwa
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