Tanzania seek foreign help to recover stolen funds

A JOINT REPORT
The East African
Tanzania has sought the services of foreign security agencies to investigate funds and assets stashed abroad by suspects implicated in the Bank of Tanzania external payments arrears account (EPA) scandal.
When The EastAfrican contacted the Serious Fraud Office (SFO) of the United Kingdom, we were informed that although is aware of the issue, it does not as a matter of policy comment on requests for assistance from overseas authorities.
Jina Roe of the SFO told The EastAfrican from London that as any assistance granted would arise from a formal request from the Tanzanian authorities, it would be more appropriate that queries be raised with them.
“The SFO is not the only UK body that can be asked to assist with the freezing of assets if there are suspicions of serious or complex fraud or money laundering offences,” said Ms Roe.
A recent government statement said the team appointed to investigate the BoT fraud has already traced individuals implicated in the scam in and outside the country.
The team, which is headed by the AG, also comprises the Inspector General of Police and the Director of Criminal Investigations (DCI). Its primary role is to follow up persons and companies involved for purposes of determining the legality or otherwise of each and every payment from the EPA account.
Already, one of the chief suspects in the EPA scam, Jayantkumar Patel, popularly known as Jeetu Patel, has been requested to appear before the investigators.
Mr Patel, who is also currently being investigated by the SFO over the $40 million BAE radar deal scandal, is said to own a $5 million waterfront property in the Burj area of Dubai.
These developments come amid reports that some of the stolen money has been recovered and returned to the central bank. Attorney-General Johnson Mwanyika said his team had recovered the funds, as directed by the president and prosecutions were likely to follow soon.
It is alleged that some of the properties bought from the “stolen” funds are in Dar es Salaam, Dubai, London and South Africa.
Assistant Commissioner of Police Joseph Ngobane, chief director communications and liaison services with the South African Police Service told The EastAfrican from Pretoria, last week that the investigating team is tracing assets in South Africa allegedly acquired through money that was paid out from the EPA.
Mr Ngobane said a number of properties have been identified so far and they are working with and passing on information to their Tanzanian counterparts.
According to the government statement, Jeetu Patel, Jose van der Merwe, Fundi Hayesh Kitunga, Charles Isaack Kissa, Peter Sabas and Beredy Sospeter Maregesi, are among directors and shareholders of companies that benefited from the EPA funds. Others are Johnson Mutachukurwa Lukaza, Japhet Laiyandumi Lema, Samson Mapunda, Kizza Selemani, Mwesiga Rutakyamilwa Lukaza, Emily Samanya, Massimo Faneli, Lecis Msiko, Paul Thobias Nyingo and Elisifa Ngowi.
Some of the directors of the companies involved in the scam have been made to sign deeds of settlement, which legally binds them to return the money.
Other shareholders and directors have been asked to surrender their travel documents and report to the police from time to time.
Sources in the investigating team also say that one of the companies, Kernel Ltd, which is owned by Johnson Mutachukurwa Lukaza, had an office in Dubai and in 2006 won a tender to supply a new fire engine to the Songea Town Council although the fire engine eventually supplied was said to be reconditioned.
The company is also said to have won a tender to install fire extinguishers and smoke detection system to the Tanzania Peoples Defence Forces (TPDF).
Sources said the Kernel Ltd Dubai office has since been closed following the ongoing investigation.
The AG said the team had also found the names of the directors and shareholders of Kagoda Agriculture Ltd which received $30.8 million.
Early last year the International Monetary Fund said that the EPA scam clearly specifies the nature of the problems identified during the special audit and the steps to be taken to rectify them.
The fund said it will request an updated safeguard assessment which are explicitly designed to evaluate the adequacy of internal checks and balances within a central bank to ensure that potential risks are mitigated.
Messers Malegesi and Lukaza are also said to own $200,000-worth Mercedez Benz and Range Rover respectively, imported from the United Kingdom.