THE MULTIMILLION DOLLAR SCANDAL, INVOLVING THE BRITISH FIRM AND THE SUPPLY OF AVIATION RADAR TO TANZANIA COMES BACK TO HAUNT
Investigative News Writes Leo Odera Omolo
Information emerging out of the Tanzanian capital, Dar Es Salaam says that the country is at crossroads, wondering whether to investigate afresh an international corruption case involving British arms manufacturers BAE system.
This came about after the company had allegedly admitted it was guilty of dubious financial dealings in its sale of a USD 46million Watch Air Traffic Control System to Tanzania.
BAE Systems, it was reported, admitted there were malpractices received as payment in the deal.
In its latest edition, the EASAFRICAN weekly quoted the company chairman, Mr.Dick Oliver as saying in an exclusive interview that “Under the agreement with the Serious Fraud Office {SFO}, the company will plead guilty to one charge of breach of duty to keep accounting records, in relation to payments made to a former marketing adviser in Tanzania.
“The company will pay an agreed penalty of 30 million sterling pounds {USD 46 million}, comprising of a fine to be determined by the court, and the balance as a charitable payment for the benefit of Tanzania”.
But back in Tanzania, senior officials of the Prevention and Combating of Corruption Bureau {PCCB} and the Ministry of Justice, were reported to be tight-lipped on whether to continue with fresh investigations or not.
Last week, UK’s Serious Fraud Office {SFO} allowed BAE to plead guilty in a London court to the offence of selling to Tanzania a 28 million pounds air traffic control system, and yet requesting for USD 46 million in payment.
The SFO then dropped its charges against those involved in scandal, who included Tanzanian officials Anbdrew Chenge {then the Attorney General} business tycoon Tanil K.C Somaiya of Shivacom and one Shailesh P.Vithilan.
In court, they were accused number six, eight and nine respectively. Accused number seven is not mentioned on the charge sheet.
Mr Chenge was later appointed a minister for Infrastructure Development in the President Jakaya Kikwete administration. But he resigned after SFO implicated him in the scandal, with claims alleging that he had received 1.5 million sterling pounds from BAE as “Kick Backs”.
The World Bank and the International Civil Aviation Organization –before and after the purchase of the system –said it was unnecessarily overpriced.
The PCCB investigation was however largely dependent on SFO findings, meaning the country will have to conduct its own probe.
This viewpoint is supported by the Deputy Leader of the official opposition in the National Assembly, Dr Wilbrod Slaa. And the SFO has been actively investigating the USD 39.5 million {Tshs 53.billion} contract signed in 1999 to supply a radar system to Tanzania.
The probe also relates to payments of USD 12 million to Shailesh Vithilan, BAE’s former marketing adviser based in Dar Es Salaam.
A six year investigation by SFO identified key roles played in the radar deal by Mr.Chenge, the former AG, and Dr. Idris Rashid, the then Bank of Tanzania governor.
PCCB public Relations Officer, Doreen Kapwani, was quoted last week as saying that they were yet to issue a comprehensive statement on the matter.
Tanzania Minister for Justice, Mathias Chikawe, also declined to offer any comment. But by pleading guilty under section 221 of the companies Act,1985,BAE will not face an embarrassing court case.
Last month, Uganda civil aviation authorities demanded payment back for a dummy radar, which was purchase before the summit of the Commonwealth Head of States and Government {CHOGM] in November 2007, which has since then ceased to operate.
Ends
leooderaomolo@yahoo.com