Tanzanian club Yanga given ultimatum to refund sh1.6M

By GILBERT WANDERA

Francis Gaitho

Nairobi- A Kenyan businessman has given Tanzanian club Yanga a one week ultimatum to refund $20,000 (Approximatley Sh1.6million) over an alleged breach of contract.

The businessman Francis Gaitho has threatened to take legal action against Yanga if the money is not refunded by the end of this week.

The matter has arisen out of the March 1, champions league encounter between Yanga and Al-Ahly. Both sides accuse each other of breach of contract.

According to the contract signed between the two parties, Yanga were supposed to receive Sh4.6million as television rights fees from Gaitho to be paid in two installments of Sh1.6milllion and Sh3million.

However, Gaitho accuses Yanga of failing to allow his company to air the match even after he paid the agreed amount.

“Take not that failure by your club to refund the money will result in my company taking legal action against yourself,” Gaitho said yesterday in a letter addressed to Yanga.

Documents in our possession indicate that the two parties entered into an agreement over the champions league match in early December.

The contract stipulates that Yanga were to receive Sh.1.4million by February 8. The second installment of Sh. 1.6million was to be paid hours before the actual match on March 1.

The last installment of Sh.1.6million was to be paid to the club after the match and completion of all rights.

In exchange for the cash, Gaitho was to be granted the right to transmit video and audio of the match to Egypt and the Middle East.

Furthermore, Yanga were also required to provide a TV signal for the purpose of retransmission one hour before the game.

However,  Yanga have disputed this version of events and instead accused Gaitho of failure to honor his obligations.

In response to the allegations an official of the club Beno Njovu says:”We are deeply disappointed by the way you failed to honor your obligations. You were supposed to deposit with Yanga Sh1.6million before February 15 but did not honor this obligation.

“The final payment of Sh.3million was supposed to be paid before the match and again you did not honor this.

“Please not that we did not stop you from airing the match live but rather we entered into an agreement with a local television station who would give you the live feed.

“In the process we incurred huge expenses which we are going to invoice you plus the opportunity cost of rejecting other offers which came after we had signed a contract with you.”