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Investment Encouragement Act 1999, Ammended in 2000 - Chapter 4: Safeguard of Investment
Monday, 08 March 2010 20:38
Article Index
Investment Encouragement Act 1999, Ammended in 2000
Chapter 2: Encouragement of Investment
Chapter 3: Privilege & Guarantees
Chapter 4: Safeguard of Investment
Chapter 5: Investment Organs
All Pages

 

Chapter 4: Safeguard of Investment

Investor licensed to establish a project

19.(1) Subject to the provisions of section 4, no person shall establish any project, in the Sudan, save after obtaining a licence therefor, from the Minister, or the State Minister, as the case may be, in accordance with the provisions of this Act.

(2) Subject to the provisions of sub-section (1) , no licence shall be granted, for mixed or foreign investments, by states, save after approval of the Minister.

Feasibility study of the project presented

20. No project shall be granted licence, nor shall it be granted any such privileges and guarantees, as may be set out in this Act, save after presenting a technical and economic feasibility study of the project.

Grant of licence and privileges requested

21. An application, for the grant of licence, for any project, or of any of the privileges provided for in this Act, shall be presented, on the prescribed form as follows :-

(a) strategic and non-strategic federal projects, to the Ministry;

(b) strategic and non-strategic state projects, to the State Minister.

Grant of licence

22.(1) The Ministry, or the State Ministry shall, upon receipt of a satisfied licence application, for any project, transfer the application to the federal Competent Minister, or the State Minister, as the case may be, within one week, to obtain the primary approval of establishing the project.

(2) The federal Competent Minister, or State Minister, as the case may be, shall determine the application for primary approval, and send the same, to the Ministry, or State Ministry, as the case may be, within seven days, of the date of receipt of such application.

(3) In case of not sending the primary approval, in the period provided for in sub-section (2), the Minister, or the State Minister, shall determine the application, after lapse of such period.

(4) In all cases, the Minister, or the State Minister, as the case may be, shall determine the licence application, within a period not exceeding thirty days , of the date of receipt of the satisfied application, from the Investor.

(5) Every applicant, for licence, shall be entitled to grievance, to the Federal, or State Council of Ministers, as the case may be, against the non-determination of his application, in accordance with the provisions of sub-section (1), to determine his grievance, within the period of one month, of the receipt of the satisfied grievance.

Land allocated for the project delivered

23. The Federal, or State Competent authority, shall deliver the land allocated for the project, within a maximum period of one month, of the date of granting the licence.

Conditions of the continued enjoyment

of the licence and privileges

24. No Investor shall take any of the following measures, during the period of validity of the licence and privileges, granted under the provisions of this Act, without obtaining a written approval , from the Minister, or the State Minister, as the case may be, the measures being to :-

(a) conduct any amendment, or alteration, of the size of the project, or the object for which the licence has been granted, or transfer the project, from the place thereof prescribed in the licence;

(b) use, or sell any of the equipment, machinery , apparatuses, materials or spare parts, with respect to which privileges have been granted, for any other purpose, other than the purpose, for which the licence has been granted;

(c) change the purpose of use of the land allocated for the project, sell, mortgage or hire the same totally, or partially.

Duties of the Investor

25. The Investor shall :-

(a) commence executing the project, within a maximum period of twelve months, of the date of receipt of the land, unless such period has been extended, on the part of the Minister, or the State Minister, for any such period, as he may deem fit;

(b) submit, to the Minister, the Competent Minister and the State Minister, periodical reports, every six months, during the period of validity of privileges, on the progress of the operation of executing the project, up to the date of commencement of production, or practice of activity;

(c) keep regular books, and maintain records, whereon shall be entered the assets of the project exempted from customs duties, and the exempted imported materials;

(d) present, to the Minister, the Competent Minister and the State Minister, annually, during the period of validity of the privileges, a copy of the annual accounts of the project, approved by a certified auditor;

The Investor contravening the

provisions of this Act

26.(1) An Investor shall be deemed to have committed a contravention of the provisions of this Act, where he :-

(a) contravenes the provisions of sections 19, 24 and 25;

(b) delivers false, or misleading information , or uses such unlawful methods, as may result in obtaining any benefit, in accordance with the provisions of this Act, for himself, or any other person;

(c) suspends the project, without reasonable cause;

(d) contravenes the laws of the country, in such way, as may endanger the security and safety thereof.

(e) Contravenes licence condition.

(2) Without prejudice to any such penalty, as may be provided for in any other law, the Minister, or the State Minister, as the case may be, may in case of commission, by the Investor, of any of the contraventions, provided for in sub- section(1), impose any of the following sanctions, in accordance with the size of the contravention and the circumstances of commission thereof, and the extent of such damages, as may affect the national economy :-

(a) warning him, to remove the grounds of the contravention, if the same is required, within such period, as he may specify;

(b) decrease the period of any of the privileges granted to the project, or the size thereof;

(c) not granting him any of the privileges and guarantees provided for in this Act;

(d) total, or partial revocation of the privileges, and the same shall result in binding the Investor to restitute the value of the material benefit gained thereby, from obtaining any previous privileges, where gaining such benefit results, from occurrence of the ground which led to the issue of the decision of revocation;

(e) revocation of the licence, and the same shall result in acquisition of the land granted to him under the provisions of this Act.

(3) An Investor in respect of whom a decision, under the provisions of sub-section (2), has been passed may submit his grievance, to the Federal, or State Council of Ministers, as the case may be, within one month, of the date of his being notified of the decision, and the decision, in this respect, shall be final; provided that this provision shall not prevent the Investor from access to courts.



 
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