Haydom Development Company (HDC) Ltd would appreciate getting in touch with individuals or organisations wanting to support one or more of the HDC activities or becoming partners.

E- mail: post@haydom-dc.com

Home Board History Visions, objectives and targets Experieances

Local schoolchildren in front of the HDC sponsored school bus

HDC = Haydom Development Company Ltd.

HLH = Haydom Lutheran Hospital

FoH = (The Foundation) Friends of Haydom

About the conflict HDC vs. SHV/FoH 

Josephine’s story 

The medical students who lost their HLH- grants:

Haydom- director Olsens letter to Fanuel. D Bellet

Fanuel D. Bellets request for help to Halvdan Jakobsen

 T   Issues in the conflict HDC vs. HLH/FoH:

The unilateral physical take-over of Mulbadaw Farm and Central Maintenance and Service Centre by order from the  Foundation Friends of Haydom in Norway; without producing any court injunction or any legal document authorizing such a take-over.

The conduct of the chairman of the Board of Directors of Haydom Development Company Ltd; his lack of loyalty to lawful decisions made by the Board in 2006 and his unauthorized and secret dealings with Joseph Tadayo leading up to the unilateral physical take-over mentioned above.

The deceit by FoH in fulfilling their own board decision of October 2005 in financing HDC Ltd

The lack of registration of the entity running Mulbadaw Farm and Central Maintenance and Service Centre after 12th August 2006; how can a foreign foundation own and run businesses in Tanzania without being registered in Tanzania?

The suspicion of corruption aimed at avoiding the case to be considered by the court.

Read more about the conflict here.



The conflict HDC vs. HLH/FoH

Chronological summary of some events

Written by Halvdan Jakobsen

1. History before the conflict

Before reading about the events below from nov. 2005, you're recomended to read about the history before the conflict started. Link to the history before the conflict.

2.  November 2005 – August 2006; FoH in Norway taking the law into their own hands

January 2nd 2006:  Two of the members of the HDC Board of Directors are called to the office of K. G. Knutsen, member of the Board of Directors Friends of Haydom (FoH), Norway , and told that FoH has taken over HDC Ltd by appointing a new all Norwegian Board of Directors with Olaf Myklatun as chairman.  This Board has again appointed Toralf Rugland as the new Managing Director.  The same two members of HDC Board were called to the same office the following day, January 3rd 2006; this time to meet with the new “Board” and the new “Managing Director.”  Consultations by telephone with lawyers in Tanzania ; aimed at explaining that companies in Tanzania have to adhere to laws and regulations in Tanzania were all in vain. 
The Managing Director of HDC Ltd, Halvdan Jakobsen, legally appointed by the Tanzanian Board of Directors, called the new Medical Director of HLH, Dr Øystein Evjen Olsen (son of the late Dr Olsen) and informed him about the decision made by FoH in Norway .  It took him by surprise; he had not been consulted.  He refused to believe in what he was told.  During the first three month of the year, Dr Øystein Evjen Olsen apparently tried his best to convince the FoH that their decision was illegal and not in the interest of HLH.
FoH pays the salaries and other costs for the Medical Director of HLH for 5 years amounting to one million NOK/year (220 million Shs) and a considerable part of both running and development costs.  It might appear as the Medical Director has been put under pressure from FoH for yielding to the FoH demands; he sides with FoH in the issue that by May 2006 has developed into a conflict about Tanzanian or full Norwegian ownership and control of Mulbadaw and CMSC. The HDC Board of Directors turns down by majority vote on 28th May 2006 a demand from FoH in Norway to sell shares to Mrs K. E. Olsen that are to be handed over to third parts in Norway; the transactions and demands linked to this sale were found to contradict laws and regulations in Tanzania.  The objective of the transactions was regarded by the majority of the HDC Board to implement the decision of complete control of HDC Ltd from Norway as announced on January 2nd 2006.
6th August 2006:  The Medical Director of HLH signs a letter giving two Norwegian citizens of FoH in Norway , Olaf Myklatun and Toralf Rugland, full authority to run Mulbadaw Farm and CMSC. Link to the letter here.
12th August 2006:  FoH, making use of the security guards at HLH and others, armed with “rungu,” takes physical control of Mulbadaw Farm and CMSC.  All core assets and non-core assets as including 850 tons of raw wheat, money in the safe, etc valued at hundred of millions shillings were seized.
19th August 2006:  Agreement reached in Arusha that FoH returns all non-core assets, including the wheat on condition that FoH is not taken to court by HDC Ltd.  The agreement states that the wheat, 350 tonnes to be used by HDC for seeds, to be stored at Mulbadaw until at the latest February 15th 2007.
Core assets were not included in the Arusha agreement; the FoH got time up to 15th October 2006 to document their claim that they were the legal owners to Mulbadaw and CMSC.  FoH did not meet this demand; title deeds were still in the name of NAFCO as issued in 1987and no other legal documentation was produced to this effect.

3. August 2006 – June 2007; agreements and breach of agreements – High Court Case Land Division, 22-2006.

The seeds stored at Mulbadaw, according to the Arusha agreement, are seized in December 2006 by RoH (Olaf Myklatun and Toralf Rugland). 
Following the seizure of the seeds belonging to HDC Ltd, HDC Ltd files case 22- 2006 in December 2006 with the High Court, Land Division.  The aim is to let the Tanzanian Court consider the legality of the actions, mainly the legal ownership to Mulbadaw Farm and CMSC.
The Regional Commissioner of Vest-Agder , Norway invites FoH and HDC Ltd to negotiate in her office in February 2007, in order to come to an out-of court agreement.  The result is that all issues related to non-core assets are settled; FoH shall pay for the 350 tons of seeds they seized within one week; again on condition that HDC Ltd does not take FoH to court over the issue or let the media know about the agreement.  HDC Ltd halts the proceeding of the case.
FoH Norway decides not to pay as agreed, but offers to release about 100tons of seeds to HDC Ltd and pay for the remaining.  The payment came almost one month after the agreement; and the seeds were not released before end of February, so late that planting could not be done before in March, 6 weeks too late for planting at the Setchet farm where HDC rented land.  The result was that the crop missed the rains in February, 150mm according to the records, causing a loss for HDC of about 200 million Shs.
April 2007: Information leaking out from sources close to FoH indicates that FoH Norway might take the law into their own hands for the third time and seize the crop at Setchet from HDC Ltd before harvesting.  The Managing Director of HDC Ltd reported to the Board of Directors in writing the information received.  Case 22-06 was modified and filed again in June 2007, in order to obtain a ruling regarding legal ownership to Mulbadaw and CMSC and as such find a solution according to the laws of Tanzania .
FoH tried in various ways to have HDC Ltd to withdraw the suit; ways that I shall not detail in this paper partly because they are of a nature that might need further investigations by others than the ones this note concerns.  It became more than obvious to the undersigned that FoH did not want a court ruling that had to be based on the Tanzanian laws.

4.    June 2007 – June 2008; FoH has managed, so far, to avoid the Court to consider the legality of their actions.

Mulbadaw Farm is operated without having any registration as a company; it is done by FoH Norway (Olav Myklatun and Toralf Rugland) in the name of HLH as stated in letter dated 6th August 2006 and signed by the Medical Director of HLH.  None of these organizations are legal entities that are allowed to operate a commercial farm in Tanzania .
The ruling by the High Court, Land Division, was expected October 15th 2007; according to information received in June 2007.  The ruling was eventually signed 17th December 2007, and read to the parties on 25th March 2008, more than 3 months later. 
FoH (Olav Myklatun) announced in a church (Klepp) in Norway in February, one month before he was supposed to be informed about the ruling, that FoH had “won” the case.  The Liquidator J. Tadayo had apparently managed to persuade the judge that the lawyer representing HDC Ltd was not properly appointed by HDC Ltd to represent HDC Ltd (!); - however; no reference to the relevant law was made by the judge.  The case is to be dismissed without hearing. 
FoH has managed, so far, to avoid the court to consider the legality of their actions in Tanzania and decide who the legal owner to Mulbadaw Farm and CMSC is.

5. Delayed court preseedings. Des 2008

For various “reasons”, the court has not been able to make a judgement about who is the rightful owner to Mulbadaw Farm and CMSC.  Neither judge nor anybody representing SHV or HLH turned up in December 2008 when the parties were to meet in court; only HDC Ltd met as called.  The case is supposed to be mentioned in April this year; but shall the court be able to consider the case now?

6. Status about the lawsuit (30th of June 2009)


A hearing vas held in The High Court - Land Division in Dar es Salam on the 22th of April this year. The result of this hearing is aspected to be announced on the 15th of July. 


Also a court ruling i Arusha was expected on 25th of June about whether or not to reinstate the case as to let Tanzanian law rule. It didn't take place, and with the untimely death of our lawyer HDC might need some time to consider how to proceed.

End statement.

The Board of Directors of HDC Ltd has not at any point during these years of conflict changed or modified the original objectives of supporting HLH economically and with its development activities as outlined in the original Project Document. 

I am receiving information from various persons in Norway and in Tanzania that some representatives of both HLH and FoH are accusing members of the HDC Ltd to have “stolen” Mulbadaw farm for personal gains.  Such accusations are not only ill-intended but are lies of a nature that might call for legal actions in order for truth to reign. 

I am also utterly disappointed by the way some of my Tanzanian friends have been treated and threatened by some representatives of FoH in Norway ; reference is in particular made to letters of eviction and/or threats of eviction signed by the chairman of the “Haydom Farm” in Norway .

According to official reports, the non-registered entity controlled by FoH Norway made a loss from farm operations at Mulbadaw of 327 million Shs from August 2006 to August 2007; - thus it is difficult to understand how this mode of operation can contribute anything to HLH or to the local communities.  It is subject to charity and support from Norway for survival.

Also read:  Summary of the development of the conflict