High Court of Tanzania orders closure of Sahara Media Group Limited publishing; Star Tv Tanzania, Kiss FM and Radio Free Africa(RFA) due to enormous losses and inability to pay creditors.
Judge Mwajuma Kadilu ordered that the media company should cease to operate as it could no longer meet its financial obligations.
Reports filed by the media company executives indicated that Sahara Media Group made loses over 3.9 billion Tanzanian shillings in 2023 alone.
The company also owed the Tanzania Revenue Authority 97.7 million Tanzanian shillings. The company’s Chief Executive Officer filed financial statements indicating that the company could not continue business due to negative financial returns.
At the hearing, it was submitted to court that nearly 80 per cent of the company’s earnings were servicing debts to tax authorities making it financially impossible to maintain day to day operation activities and broadcasting.
Judge Kadilu said that the media company was not in a position to continue doing business. Her said that liquidation was the suitable legal option to manage Sahara Media Group. Court appointed Mr Alex Mgongolwa and Mr Frank Mwalongo as liquidators of the company who will manage the distribution of funds to creditors and the business itself. Court further said that liquidation is expected to last up to 3 months.
