Court cases: Tiko’s victory against the state and defeat against investment firms

The court officially ordered the HAT, the current dictating authorities to halt its on going abuses against the Tiko Group. Once the end of material requisition is ordered, the authorities would have no more rights to interfere with the so named corporation’s management. The HAT did put its grip on Marc Ravalomanana’s home based agribusiness empire. The leaders of Tiko had stood up against a convention supposed to grant full control of the group’s management to the HAT… The court officially grants Tiko the right to make an account of what it genuinely owes to the State. On the other hand, the Group was defeated in its conflict with the Sonapar and Aro investment firms. Since the verdict is compelling the Group to give up the returns of its trade completed in supermarkets, it consequently lodged an appeal.  

Tiko’s significant custom and common taxes related amount owed to the State used to be the excuse for the legalized looting directed against the Group. As all of the available storage barracks have been plundered and set alight during Andry Rajoelina’s popular uprising, the HAT had to make do with rice, flour and wheat stored in Toamasina. The Tiko Group obviously recognized its debts to the State, some 25 billions of ariary according to its estimations, payment of which has been started since the end of 2008. The HAT was anxious to make Tiko repay for the exonerations granted by the previous regime, and subsequently required about 240 billions of ariary including some very fat invoices. The measure was openly politically motivated. The putsch’s economic incentive was this financial advantage granted to the presidential corporation, allegedly misusing it in order to undermine the competition. At least, these tax and financial advantages provided stability to prices on the daily market. 

There is a “slight” difference and a huge gap between 25 and 240 billions of ariary. Here are the chronicles: the HAT asked to Tiko for 70 billions for custom taxes on the group’s imports of the Group, 25 billions of ariary for running taxesn unpaid but recorded between 2005 and 2008. Andry Rajoelina had asked his Finance minister of the time, Benja Razafimahaleo, to lead the offensive against the Ravalomanana society. The Tiko Group has been summoned to pay 12 billions of ariary embezzled by Manakara Central Bank’s chief, 120 billions of ariary to repay the presidential plane, and 12 less controversial billions of ariary that would have been borrowed from Toamasina harbor to finance the construction of a mill.   

Tiko obviously challenged all of those astronomic amounts, labelled as a dictating authority led cancellation of an approved and basically permanent advantage granted by a democratically elected regime. The Group looks inclined to repay some 60 or 80 billion ariary of unpaid custom taxes. The argument is turning to making its maths all the way: Had Tiko truly owed 80 billions of ariary to the state, it has already recovered more than necessary from damages and storage barracks. On the other hand, the state’s balance sheet of unpaid money to Toamasina’s harbor, and to Madarail is, according to Tiko, amounting to some plus 17,5 million euros, or about 52 billions of ariary. The Group’s lawyers also added the costs of depredations originated damages; some 102 billion ariary of facility damages, and 42 billions of ariary of lost goods to lootings.