Dar es Salaam. Businessman Harbinder Sethi has filed a lawsuit against former ACT Wazalendo leader Zitto Kabwe, accusing him of defamation through false and damaging statements published about him.
The case was initiated in the High Court of Tanzania following a post by Zitto on X (formerly Twitter), detailing the IPTL saga and referencing a report from the Controller and Auditor General (CAG), Charles Kichere.
According to the court summons, Zitto is required to appear in court at 2:30 PM on June 12, 2025, for proceedings in case number 8810 of 2025 before Judge Philip.
On May 18, 2025, Zitto confirmed to reporters that he received the court summons and views it as an opportunity to shed light on the mysterious aspects surrounding the IPTL issue.
"I received the court summons on April 29 this year, and I have been accused by Sethi of defaming him and causing damage to his reputation, as he has asked the court for billions in compensation," he stated.
Zitto expressed that he intends to use this case to clarify the long-standing issues regarding the IPTL situation involving Sethi.
"I do not deny the statements Sethi accuses me of making. I wrote and published them on X, and they reflect the true nature of the entire IPTL matter," he added.
Although he claims to have published the post with good intentions, he expressed readiness to confront Sethi in court to clarify all relevant details.
During the IPTL controversy, Zitto was the MP for Kigoma South and had chaired the Public Accounts Committee (PAC), where he exposed irregular payments from the Escrow account at the Bank of Tanzania to IPTL.
His committee’s report highlighted procedural violations and allegations of corruption related to these transactions, which he presented in parliament, igniting public debate.
The saga involves a complex power generation contract between the Tanzanian government (via the Tanzania Electric Supply Company – Tanesco) and Independent Power Tanzania Limited (IPTL), initially signed in 1995 and marred by high electricity costs and corruption allegations.
Tanesco agreed to purchase electricity from IPTL at rates perceived as excessively high compared to alternative sources. A special account (Escrow) was set up at the Bank of Tanzania for IPTL payments amid ongoing disputes. Ultimately, over 300 billion shillings were controversially disbursed from this account to IPTL.
The ownership of IPTL has changed hands several times, with Pan African Power Solutions Tanzania Limited (PAP), owned by Sethi, acquiring shares under questionable circumstances.
Through his X post on April 4, 2025, Zitto outlined key points about IPTL’s history and ongoing legal matters:
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IPTL entered the Tanzanian market in the mid-90s, initially owned by Malaysian company Mechmar and Tanzanian firm VIP Engineering. After Mechmar’s bankruptcy, Standard Chartered Bank of Hong Kong acquired its assets.
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In 2013, IPTL came under Harbinder Singh Sethi through a ruling by Judge Utamwa, enabling illegal withdrawals from the Tegeta Escrow account. This ruling was later annulled by the Court of Appeal, concluding IPTL’s ownership dispute.
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Standard Chartered Bank, claiming ownership of IPTL, has successfully sued the Tanzanian government multiple times, arguing entitlement to shares and funds from the Escrow account.
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After serving time, Sethi negotiated a plea bargain with the DPP, allowing his release. The agreement mandated him to pay a specified amount, or the government would cover the debts to Standard Chartered while retaining IPTL’s assets.
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The settlement agreement also stipulated that IPTL has no claims against the government or Tanesco, raising Zitto’s concerns about ongoing unjustified claims by Sethi on Tanesco.
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Zitto called Sethi’s actions fraudulent, suggesting they violate the plea bargain and should prompt criminal charges.
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He urged the government to fulfill all aspects of the settlement agreement to resolve the issue conclusively.
- Zitto concluded that the Registrar of Companies should revoke IPTL’s registration and all associated entities, calling for the matter to be laid to rest.
