International Bank Left in the Lurch
The primary issue in this case study involved tracking down the Directors and Owners of a company who had absconded to Canada from Tanzania leaving behind substantial debts owed to an International Bank. The Bank had extended them a loan of Euro 3,500,000 for their manufacturing business. Additionally, there was a need to search for assets in the Directors' names to attach a judgment that had been handed down against them.
Actions Taken
The task required a multifaceted approach, especially since it covered multiple jurisdictions, including Kenya, Canada, USA, DRC. The actions involved:
1. Legal Investigation and Asset Tracing: This involved identifying and locating any assets owned by the directors that could be seized to satisfy the judgment.
2. International Coordination: Given the cross-jurisdictional nature of the case, it was necessary to coordinate with legal and financial entities across both Tanzania, Canada and the USA.
3. Enforcement of Legal Judgments: Implementing the legal process to attach and possibly liquidate the identified assets of the directors to recover the owed amounts.
Client Description
The client in this case was a multi-million dollar financial institution. This institution had extended significant loans to the company owned by the absconded directors and was facing substantial financial losses due to the non-repayment of these loans.
Outcome
The outcome of the case involved partial recovery of the owed amounts through the sale of identified assets belonging to the directors. This included real estate and machinery, which were liquidated as part of the enforcement of the judgment.
Challenges Encountered
Several challenges were faced during the resolution of this case:
1. Locating the Directors: The directors had fled to another country, which significantly complicated efforts to both locate them and enforce any legal actions.
2. Asset Identification and Valuation: Finding and accurately valuing the assets owned by the directors in different jurisdictions posed significant difficulties.
3. Legal and Regulatory Hurdles: Navigating the legal systems of multiple countries to enforce a judgment and attach assets was complex and required extensive legal expertise.
4. Coordination Across Jurisdictions: Effective communication and legal coordination between the involved countries were crucial and challenging, given the differences in legal systems and procedures.
This case highlighted the complexities involved in dealing with international financial fraud and the importance of having robust systems in place for cross-border legal enforcement and asset recovery.