E- mail: post@haydom-dc.com

Written by Halvdan Jakobsen

A chronological record of incidents and experiences related to “Norwegian ownership” is given below. The purpose of writing it down is more “for the record” than for any other specific purpose.

January 2004 – July 2004

Necessary amendments to laws regulating privatization of government owned land passed in the Parliament. 

NAFCO farms under the administration of the Presidential Parastatal Sector Reform Commission (PSRC) are being auctioned out.  A Liquidator is appointed by the Loans and Advance Reconciliation Trust (LART) to take care of the farms and the bidding procedures and sales.

HLH has a communication with the Prime Minister about the opportunity for HLH to be given one of the farms without letting it pass through the Liquidator, in the same manner as the District is being given two farms.  The reply is that HLH has to bid, - but HLH is given the impression that it might get the farm at a reasonable price.

Bidding procedures, which include a bidding document containing a business plan, is required. 

I was asked to by Dr. O.H.E. Olsen to write a project document for an application to NORAD for financing.  A fellow student and consultant of the Administrative Officer at HLH produced also a “Business Plan” for Mulbadaw.

The cover letter (attached) written by Dr Olsen bidding for Mulbadaw mentions only the Project Document that I have written, but I have information that the “Business Plan” probably also was submitted together with the bid from HLH.

An early draft (summary on 2 pages) of the Project Document outlining Objectives and main activities was presented “the Rogaland Group” in a meeting in Martin Volds office at Vigrestad, Rogaland in Norway .  There were no objections to the proposal as far as I could understand, apart from that two persons (Toralf Rugland and Lars ?) demanded that it should be “a Mission Farm”.  They visited headquarter of the Norwegian Lutheran Mission (in June?) with a request of having “the Haydom Farm” under the NLM umbrella, “for tax reasons”.  Although I have not seen any report from this meeting, I understand that NLM did not buy this idea of a “Mission Farm”.

HLH did not win the bid on merit of price offered, but by efficient lobbying it was given the bid on condition that it paid a price equal to the highest bid.  I have later been informed that the objectives and activities described in the project document I wrote, as summarized in attached diagram, was decisive in allocating Mulbadaw to HLH instead of to any of the other bidders whom did not include these development objectives.  

I understand that the Regional Authorities of Manyara have also expressed that these objectives and activities are important and shall have to be implemented because they are conditions for the sale of Mulbadaw Farm and CMSC to Haydom Development Company Ltd.

I am asked by Dr O.H.E. Olsen to take responsibility for implementation of the “Agricultural Programme”, Mulbadaw, as referred to in letter (attached, in Norwegian) to NORAD.

August 2^nd 2004

Friends of Haydom (FoH) in Norway decides on verbal request from the Medical Director of HLH, Dr Ole Halgrim Evjen Olsen to help HLH in financing the purchase of Mulbadaw Farm from the Liquidator

29^th October 2004

Dr O.H.E. Olsen requests officially in writing FoH for a loan to pay the first instalment of Mulbadaw Farm.  Deadline for paying is Friday 5^th November 2004. 

November 2004

Harald Haagensen, chairperson of FoH and me organize for financing; it is necessary to request for a short term loan which I and Harald Haagensen sign for.  We are also the two persons signing for the transfer of money paying the liquidator on behalf of HLH.  HDC Ltd was not yet registered; it was the perception by me and others by then that a company not yet registered, without a bank account, could not be a payer.

The bidding document for Mulbadaw was in the name of HLH, as at the time of writing it the stakeholders were not aware that the hospital is not a legal entity entitled to bid and purchase a farm.  This became evident for Dr O.H.E. Olsen only shortly before the deadline for paying.  The Memorandum and the Articles of Association were both signed 5^th of November, on the deadline for payment, by then in a hope that the farm could be paid in the name of Haydom Development Company Ltd.  It was, however, not possible to have the new company registered before 16^th November, hence the payment in the name of the bidder, HLH.

HDC Ltd was established and registered for the purpose of owning and operating Mulbadaw Farm instead of HLH. 

The original receipt for payment of 53% of purchase price for Mulbadaw, stated in the Sales Agreement, is in the name of Haydom Development Company Ltd.

January 2005

The Bishop of ELCT, Mbulu, was an active partner in lobbying for a reduced price for Mulbadaw.  No rebate was offered.

Dr O.H.E. Olsen signs a letter authorising the Liquidator to issue the Sales Agreement for Mulbadaw Farm in the name of Haydom Development Company Ltd.

This is (probably) the letter that the Liquidator requested Dr Øystein Olsen to revoke in June 2006, in order to receive 47% of the purchase price from Friends of Haydom in Norway, instead of honouring the Sales Agreement between the Liquidator and Haydom Development Company Ltd.

February 2005

The Bishop of ELCT was the Guest of Honour at the handing over ceremony of Mulbadaw Farm from the Liquidator to HDC Ltd.

The Bishop, on his own initiative, took part (one day) in the communication with core stakeholders which was part of the feasibility study for the bidding document for the Central Maintenance and Service Centre (CMSC) which I wrote and submitted on behalf of HDC Ltd.  HDC Ltd eventually got the CMSC.

A total of about 30 persons sent out from HLH appear at Mulbadaw for work, some with instructions to take certain positions, e.g. stores officer.

I was instructed/advised by the HLH management to evict all residents at Mulbadaw from their houses, as HDC Ltd had bought the property without liabilities. I left this issue with the Liquidator, as it was his responsibility.

March 2005

I write the Bidding Document for CMSC and submit it in the name of Haydom Development Company Ltd, signed by Directors of the Board of Directors for HDC Ltd.  5% of the bid is paid when bidding.  Rajani, not HDC, has the highest bid.  I have a friendly discussion with Rajani after opening the bid.  Rajani offers to withdraw his interest in CMSC, which he confirms later that he has done. 

June 2005:

Olav Myklatun requested by Friends of Haydom to have a core role in development/financing/organizing “Haydom Farm”. Haydom Development Company Ltd” seems to be “a non-entity” in Norway by June 2005.  I invited Olav Myklatun to come and visit Mulbadaw already in June 2005, - he did not accept the invitation.

June – October 2005

Various stages of an organizational chart presented for members of FoH in Norway, mainly by Kjell G. Knutsen and Erling Romsaas.  Main purpose seems to be to find the most efficient way to control both ownership and operations from Norway

October 2005

Olav Myklatun accepts “officially” over telephone to Board of Directors FoH (meeting in the office of Kjell G. Knutsen) to become chairman of “Haydom Farm”, one of three units in FoH.  Other appointed members are:  Toralf Rugland, Martin Vold, Erling Romsaas and Kjell G. Knutsen.

I presented the HDC Ltd budget 2006 in this meeting in Norway, after it had been approved by the Board of Directors of HDC Ltd. FoH promised to make available capital for HDC Ltd to purchase CMSC and for the last instalment of Mulbadaw Farm.  I requested a credit for operational costs January – August of up to TShs 400 million for production on 2 000ha and was promised half of it.

November 2005

Difficulties with “a second line of command” starts, - some individuals employed by HDC Ltd are apparently reporting to HLH and not to HDC, at times also spending working days there without authority from the HDC management.  When asked why, the answer was “Mshashi called me” or merely that “I was called” without mentioning name at Haydom.  The problem with “second line of command” was more severe when I was absent from the Mulbadaw than when I was present. Among the employees travelling to HLH on such “instructions” are the watchmen, originally sent there by HLH, but also others.

Sales Agreement for CMSC:

HDC Ltd pays up so that 50% of the agreed price is paid on 22^nd November, and signs the sales agreement the same day. The payment is made from the HDC Ltd account in CRDB Arusha after transfer of 50% of the agreed price from Friends of Haydom in Norway .  HDC Ltd has still the understanding that this amount is to be regarded as loan to be paid back by HDC Ld to HLH, or partly transferred into shares that shall be part of the Tanzanian owned “Dr Olsen Memorial Foundation”. 

December 2005

The Bishop and the District Commissioner are guests of honour at the handing over ceremony of CMSC from the Liquidator to HDC Ltd.

Jan 2006

From now on it's the history of the conflict. HDC Ltd. vs. HLH/FoH. Read about the conflict here.