Tanzanian High Court Rejects ARC's South African Court Order in R3.15 billion Motsepe Dispute

• The High Court of Tanzania refused to use a Gauteng High Court ruling to dismiss a R3.15bn damages claim against African Rainbow Capital
• Judge Frank Mirindo confirmed Tanzania holds proper jurisdiction in the case linked to billionaire Patrice Motsepe and the Chilalo graphite project
• The lawsuit was struck off the roll on a procedural ground, with Pula Group now weighing three options, including an appeal or fresh proceedings

TANZANIA — The High Court of Tanzania has rejected African Rainbow Capital's (ARC) attempt to use a South African court ruling to shut down a R3.15 billion damages claim connected to billionaire Patrice Motsepe and related entities.

According to News24, ARC had argued that an April judgment from the Gauteng High Court in Johannesburg, which found that ARC was not bound by a 2019 confidentiality agreement, effectively resolved the dispute. Presiding Judge Frank Mirindo dismissed that argument, ruling that the Tanzanian court holds legitimate jurisdiction over the matter and that the South African finding was not conclusive to the proceedings before him.

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Tanzania asserts jurisdiction over Chilalo Graphite dispute

The case centres on the Chilalo graphite project and allegations brought by Pula Group and Pula Graphite Partners against ARC and linked entities. While Judge Mirindo affirmed that Tanzania was the correct forum to hear the dispute, the lawsuit was nonetheless removed from the court roll on a separate procedural basis.

The court found that Pula Group and Pula Graphite Partners had failed to join two entities central to the case: Evolution Energy Minerals and Ngwena Tanzania. Without including these affiliates in the legal proceedings, Judge Mirindo ruled it was impossible to fairly determine whether confidentiality obligations extended through the corporate network involved in the Chilalo project.

Merits left undecided as Pula weighs next steps

Critically, the court made no determination on whether Pula's underlying allegations of breach of contract had merit. The substantive claims remain unresolved. Judge Mirindo also declined to issue a costs order, citing the conduct of both parties throughout the litigation.

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Following the ruling, Pula Group released a statement indicating it is currently assessing three possible courses of action: lodging an appeal, pursuing a judicial review, or initiating fresh legal proceedings that would include all necessary parties. The outcome leaves the R3.15 billion dispute unresolved, with the legal battle over the Chilalo graphite project likely to continue in one form or another.

Patrice Motsepe breaks silence on presidency rumours

In a related article, Briefly News reported on Motsepe's recent media address in Johannesburg, where he dispelled speculation regarding his political ambitions and potential FIFA presidency. The billionaire confirmed he has no intention of entering South African politics or competing for leadership within the global football governing body, focusing instead on his current commitments.

Source: Briefly News