DRAFT     Mwanza, Tuesday, January 03, 2006

 

 

 

Report concerning defection of contract:

 

 

 

Contractor: Daniel Lwitakubi (Masala General Supplies, P.O.Box 11899 Mwatiza, Bwiru).

Contract for building a dhow (jahazi) for the sum of TSh 13 000 000/=

Contract of Januari 11, 2005, with buyer: Dr. hamminga Lambertus, Mwanza Yacht Club

 

 

 

This report is a sequel to the report of October 15, 2005 (attached). Mr. Daniel has declared that previous report entirely correct. It mentions among other issues that buyer had already paid for finishing of the hull on May 18, 2005. After that the hull was not finished. Money was lost. The buyer paid an additional TSh 1 500 000/= on August 6, 2005 to help Daniel to finish the hull. After that previous report the following events occured:

October 25, 2005. The hull again was not finished. The money advance had disappeared.
Daniel and buyer hamminga signed a new contract: the hull would be ready November 12, 2005, the boat would be finished completely December 28, 2005. Daniel got another TSh 2 000 000/= advance. Total advance had now risen to TSh 11 000 000/=. The remaining TSh 2 000 000/= would be paid on delivery.

November 12, 2005. The day of hull inspection according to the new contract. The hull was not ready. The bottoms plank were made of 7/8 instead of 1 inch planks. Keel too thin. Cheap screws had been used instead of the copper screws agreed in the contract.

December 28, 2005. The boat was not ready, not even the hull was ready. The inspector noticed serious lack of hull stiffness, that had to be corrected by addional wooden beams and metal bars. Buyer bought the necessary parts since Daniel claimed to have no more money. The latest money advance of TSh 2 000 000/= had already completely disappeared, clearly not used for building the dhow.              
During some weeks in November-December 2005 , Daniel was assisted by his half-brother Gabriel, who told the buyer that Daniel had misused buyers advances by trying to do quick profitable business and loosing the money. Gabriel did, however, not give any details.

After the contract date of delivery December 28, 2005, there was no further progress in finishing the boat. Many days, there was no one at the ship yard.

January 2, 2006. The hull was still unfinished. Moreover, the boat had no floor, no deck, no ruther, no helm, no mast, no gaff not any other rig hardware, no anchoring and mooring hardware. Stern, board caulking and plank screwing were unfinished, hence even no start could  have been made with outside hull painting,  After having been advised to go to police, buyer hamminga met Daniel and contract witness Feleshi (saw mill manager of the African Inland Church, Bwiru), to discuss whether police could be avoided. Daniel however, said all money had gone and knew only one solution the problem: another money advance by buyer.
Buyer at that moment has just pointed Daniel his contract obligations and left the meeting, saying he would consider what to do.

Calculation of amount of money embezzled by Daniel (in Tanzania Shillings)

 

A: Total Daniel contract building cost                                                                        13 000 000/=

 

1. Buyer paid in cash to Daniel                                               11 000 000/=

2. Hardware supplies and corrections by buyer: (spec. below)              1 192 583/=

3. Inspectors estimate the cost for finishing the dhow to be

(spec. below)                                                                             5 707 500/=

B: Total 1,2,3                                                                                                  17 900 083/=

 

Embezzled by Daniel hence is B minus A:                                                        4 900 083/=

 

 

Claim?.......

 

On the ground of the extreme conditions of

a)      embezzlement of money advances to the amount of TSh 4 900 083/= and

b)      completely hopeless building delay

buyer demands

1.      to be freed of the contract and be allowed to finish his ship with another contractor.

2.      reimbursement by Daniel of the embezzled sum of money

 

 

Table: Hardware supplies and corrections by buyer

 

 

Photo: State of dhow at December, 12, 2005, not much has changed until today

 

 

Budget for finishing the dhow