Tanzanian court orders G4S to pay Dangote $329,000

By THE CITIZEN

The High Court in Tanzania has ordered G4S Secure Solution (Tanzania) Limited to pay cement manufacturer Dangote Industries Ltd Tanzania a total of Tsh764 million (about $329,452) over multiple thefts and loss of property.

In a counter lawsuit, Dangote had blamed G4S for poor security services that led to the loss of its property.

The court upheld a counterclaim raised by the cement company in a Tsh618 million ($266,494) lawsuit that the security firm had brought against Dangote in 2018.

In 2018, G4S sued Dangote for failing to pay them Tsh618 million ($266,494) in breach of a contract they entered into in April 2016 for provision of security services.

Dangote then raised a counterclaim of Tsh1.2 billion ($517,464) against the security firm over losses it blamed on poor security services. The cement firm accused G4S of security lapses which led to multiple thefts and loss of its properties, including copper wires, tyres, rims, lorry batteries, tarpaulins and air conditioners.

Philipo Mwamanda, a security supervisor for the cement firm, told the court that the security company’s officers allowed stolen materials to be moved through the main gate that was under their guard. The witness further testified that they refused to honour some claims from G4S after noticing that the firm did not improve its security services.

“We sent demand notices to the plaintiff (G4S) on various dates for compensation for losses caused by theft of drum copper wire and other equipment amount to Tsh1.2 billion ($517,464), but the plaintiff refused to compensate the defendant (Dangote),” the witness told the court.

Justice Deo Nangela said in his recent decision that Dangote’s refusal to honour the security firm’s invoices was justified owing to the various loses which the cement firm suffered in the hands of G4S.

“Since the plaintiff had noted that even his own employees were untrustworthy, there should have been more proactive security interventions in the course of discharging its duty to protect the properties of the defendant,” said the judge.

He said he was satisfied that G4S failed to provide the contracted security services to Dangote.