Tanga Cement Company has rescinded its decision to sue the Tanzania Electric Supply Company (Tanesco) for disconnecting power to its plant.
In a press statement released at the weekend in Dar es Salaam, the cement company said the decision taken is in view of the heavy financial burden state-owned power utility firm is experiencing at the moment.
"Tanga cement board of directors has decided not to pursue legal action against Tanesco," read the statement signed by the firm’s acting board chairman, Prof Samuel Wangwe.
According to the statement, the move does not mean that it acknowledges Tanesco’s claims that power was disconnected because the cement company had been illegally tapping electricity.
"Legal opinion by two prominent law firms have confirmed that Tanga cement has a strong case against the power utility firm. But after careful consideration, the board will not take legal action," read part of the statement.
In November last year, Tanesco disconnected power supply to Tanga cement plant over alleged meter tampering and no-payment of power bills amounting to Sh49 million charges which TCC managing director Juerg Fluehman swiftly denied and instead accused the power utility firm of violating the law.
He said indebted consumers are normally served with a written notice of at least 48 hours before disconnection is effected. The cement company explained that at the time, its monthly bills ranged between Sh450 million and Sh500 million per month which was always paid on time.
Power supply to the cement firm was restored the next day without any condition, apparently on orders from Tanesco’s top brass. The saga forced the electric firm’s managing director, Dr Idriss Rashid to temporarily resign from his post.