The Sunday Mail
African Medical Investments’ empire of hospitals is crumbling as the group has filed for bankruptcy of Trauma Centre Dar es Salaam while the same hospital is facing eviction for failing to pay rent for 26 months.
AMI (Plc) is also embroiled in a long-running ownership wrangle of Trauma Centre Harare with prominent medical doctor Dr Vivek Solanki. The fight is still pending in the courts although Dr Solanki was evicted from Trauma Centre in September 2014 and the top-notch health facility has been closed for six months.
Last week High Court judge Justice Francis Bere recused himself from the case involving Dr Solanki and AMI, saying in the interest of justice, another judge should hear the matter since he had had prior engagements with the parties.
The closure of Trauma Centre Harare left 25 cancer patients and hundreds others stranded.
In South Africa, AMI was forced to close OR Tambo Clinic and the Cape Town Airport Clinic following a fall-out with Dr Solanki who also had interests in those health institutions.
Now, hundreds of patients in Tanzania are likely to be left stranded as AMI is facing imminent eviction from its premises over unpaid rentals, pending a High Court order to wind up operations.
AMI Hospital was dragged to court for the outstanding rentals by Tanzania businessman Signh Bains.
This follows a recent Tanzania Court of Appeal order for AMI to deposit US$1,5 million and a monthly rent of US$64 000.
The group chairman, Mr Peter Botha, who is based in Johannesburg, South Africa, filed a petition on March 13, 2015, with the Tanzania High Court’s Main Registry seeking to be wound up.
According to court papers in our possession, Mr Botha said his company is running losses and its liabilities exceed its assets.
A section of the court petition reads: “That the petitioner incurred a net loss of US$1,146 million in the year ended 28 February 2013 while in the year ended 28 February 2014 the petitioner incurred a net loss of US$775 000 as appeared in annexures AMI2.
“That for several years in which the petitioner has been in operation, she has managed to establish herself in the hospital business by acquiring medical facilities, equipment as well as engaging qualified staff and experts that enable AMI hospital, owned by the petitioner, to be among the hospitals capable of offering high grade medical services in Tanzania. However, there are outstanding liabilities and debts which exceed ability of the petitioner to pay.”
Mr Botha also wrote that given the value of the assets of the company and the amount of money owed to it by its creditors, AMI was unable to pay off its debt.
He added that if AMI winds up in Tanzania, it would enable the company to ensure fair and equitable treatment of creditors. Apart from the looming collapse of Trauma Centre Dar es Salaam, AMI also disposed its Maputo hospital.
As problems continue mounting, AMI was also ejected from the London Stock Exchange last year.
According to a trading and cancellation of AMI (Plc) listing written by LSE on February 10, 2014, the company’s trading was cancelled after it has been placed on suspension for six months.
