Tanzanian superstar Rajabu Abdulkahali Ibrahim, popularly known as Harmonize, has been ordered to pay Tshs 113 million ($41,810) in a debt recovery case involving CRDB Bank Plc, the largest commercial bank in Tanzania.
The High Court’s Commercial Division ruled in favour of the bank after Harmonize repeatedly failed to respond to court summons regarding a loan dispute.
Details of Harmonize and CRDB’s dispute
The case traces back to October 10, 2019, when CRDB Bank extended two credit facilities to Harmonize, totalling Tshs 300 million ($111,000). These loans were intended to finance the acquisition of music equipment, establish a production studio, and cover music promotion costs.
The facilities, one valued at Tshs 100 million ($37,000) and the other at Tshs 200 million ($74,000), were offered with an 18% annual interest rate. Harmonize was expected to repay them over 36 months through equal monthly instalments.
A key condition of the loans was that Harmonize would maintain an account with the bank and route all his business proceeds through it, securing the loan with Tshs 100 million ($37,000). However, the singer failed to comply with the terms. He neglected to channel his income through the designated account and defaulted on his loan repayments.
Consequently, CRDB Bank filed a suit against him on December 6, 2023. The lender sought repayment of Tshs 103.1 million ($38,000), which was the outstanding loan balance.
The court issued summonses to Harmonize on December 8 and December 14, 2023, but despite being served on December 21, 2023, Harmonize failed to appear in court or file a written statement of defence (WSD).
Multiple attempts were made to serve him again, including a re-service order issued on February 28, 2024, and a summons published in the Mwananchi newspaper on April 19, 2024. However, the ‘Single Again’ hitmaker remained unresponsive.
As a result, CRDB’s legal representative, Fredrick Mpanju, requested to proceed with the case ex parte (in the absence of the defendant) as permitted by Tanzanian law. The court granted this request, allowing CRDB Bank to file for a default judgment.
The court’s judgment
In its case, CRDB Bank presented comprehensive evidence of Harmonize’s default, including affidavits, bank statements, and correspondence. The bank disclosed that Harmonize had requested a variation of his loan repayment schedule in January 2022. He proposed reducing his monthly payments from Tshs 10.87 million ($4,000) to Tshs 3.3 million ($1,200) citing financial constraints.
The bank granted this request in September 2022 and adjusted the outstanding debt to Tshs 109.7 million ($40,000), setting new monthly payments at Tshs 3.9 million ($1,400). However, the artiste defaulted on the repayment plan, leading to the current legal action.
In its judgment, the court, presided over by Justice C.K.K. Morris, ruled that Harmonize must pay the outstanding sum of Tshs 103.1 million ($38,000). Additionally, the court imposed an 18% interest rate on the outstanding debt from the date of default.
Harmonize is also required to pay a 7% interest on the decretal sum, which will apply from the judgment date until full payment is made. Furthermore, the singer is mandated to pay CRDB Tshs 10 million ($3,700) in damages and cover the lender’s legal costs in the case.
It remains to be seen whether Harmonize will appeal the case. The artist has not commented on the case since the judgment was issued.
