GAPCO Financial Woes Spread to Tanzania

Gulf Africa Petroleum Company (GAPCO) and its sister company, GAPOIL, are under receivership in Tanzania following a court order over debt dispute between the firms and two commercial banks.
GAPCO is a wholly-owned subsidiary of GAPCO Mauritius, a key player in the oil industry in East Africa. It now has a network of 2,000 petrol stations across Uganda, Tanzania, Zambia, Malawi, Sudan, Mauritius, Kenya, Rwanda and Burundi.
Tanzania's Daily News newspaper reports that the oil company is under receivership by order of the court, but it is still to early to know how much they owe the banks - Barclays Bank Tanzania Limited and Standard Chartered Bank Tanzania Limited.
Receiver Manager, Protase Ishengoma, says it is too early to determine the level of the firm's indebtedness. He said he would be in a position of knowing the level of debts next week.
The High Court in Dar es Salaam earlier this month appointed Ishengoma, Masha, Mujuluzi, Magai Advocates as joint administrative receivers of GAPCO and GAPOIL. The court, however, restrained the receivers from taking over companies' business and assets pending the determination of a dispute between the banks and the oil marketing firms.
Earlier this month GAPCO Uganda refuted reports that it was closing over debts. The company's General Manager, Manarao Harkesh Ramjidas denied reports that GAPCO owes Standard Chartered Bank nine billion shillings. He said the company has filed a suit in the Commercial Court against Standard Chartered Bank in regard to the alleged debt.