EADB REASSURES STAKEHOLDERS
The Board of Directors of the East African Development Bank (the EADB) held a special meeting on 10th March 2010. The meeting was called to consider and take appropriate measures following the decision of the Court of Appeal of the United Republic of Tanzania by which it dismissed the Bank’s Appeal to be allowed to challenge an award in excess of USD68 million rendered against it in a disputed Arbitration Award.
As will be recalled, the Bank has since 2005 been seeking an opportunity to demonstrate to the courts in Tanzania that the Arbitration award against it was unjust and ought not to have been made in the first place. Instead the Bank firmly believes that the arbitrator should have ruled that the borrower pay to the Bank the principal and interest which were due to the Banks as of 31st August 2005 as per the loan agreements.
The EADB is aware that the clients, development partners, international organizations and other stakeholders of the Bank wish to know the effect of this judgment on the future operations of the Bank.
In this regard, the EADB would like to take this opportunity to assure all stakeholders that the operations of the Bank will continue. The Board has accordingly instructed the Bank’s legal team to take all necessary legal action to ensure that the Bank’s interests are protected.
The Bank wishes to take this opportunity to advise all the stakeholders that the Member states and non-state shareholders remain firmly committed to the EADB and will continue to support the Bank in its efforts to finance the social and economic development of East Africa, a role that has been given to it and re-affirmed by the East African Community Treaty.
Ramadhan M. Khijjah
Chairman of the Board of Directors
DAR ES SALAAM, 12 MARCH 2010
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