Tanzanian billionaire Mo Dewji displeased with FCC’s latest move against Simba SC

Mohammed Dewji has expressed dissatisfaction over the latest decision by Tanzania’s Fair Competition Commission (FCC) to restart negotiations regarding his efforts to restructure the Simba Sports Club (Simba SC).

The Tanzanian billionaire is the chairman of the board of directors and a significant investor in the Msimbazi-based football club.

The move comes months after the FCC launched a probe into the restructuring efforts on allegations that Dewji was attempting an “unnotified merger.” However, Dewji cried foul, stating that the FCC is simply delaying his plans to restructure the club, The Citizen reported.

“I am sorry to say that after holding meetings with the FCC and agreeing to formalize things, out of nowhere we got letters to start over again. Perhaps the MPs are right that there are plots to stop us. This is very bad. Our big plans are delayed,” Dewji was quoted as saying.

Insiders claim that the delay is stalling numerous activities at the club, including Dewji making a Sh20 billion ($8.63 million) investment to fund the restructuring.

In January 2021, the FCC launched an investigation into Simba SC’s management, seeking prosecution for the unlawful implementation of a merger.

Bowmans reported that the FCC sought to impose the maximum penalty of 10 percent of the combined annual turnover against 5 parties involved in the merger. They include the Simba Sports Club Holding Company Ltd., MO Simba Company Ltd., Simba Sports Club Company Ltd., Simba Sports Club and Mo Dewji.

The FCC alleged that certain transactions in the transformation process of Simba SC to a company led to a change of control (ownership) over the club, resulting to a merger by law. But prior to the merger, SSC was 100 percent owned by its club members, with a board of trustees responsible for oversight of its affairs.

Although the club met the financial thresholds that require it to notify the FCC of an intended merger based on its value alone, the FCC said that the merger was not one which would have been prohibited. However, the body holds that a prior implementation of a notifiable merger without its approval is a serious offence.