Revelations in DCP fraud case: Bunge report implicates Subbash and Jeetu Patel

[BAK]

Revelations in DCP fraud case: Bunge report implicates Subbash and Jeetu Patel

DUBIOUS DEALINGS Nimrod Mkono
-Names them alongside V.G Chavda
-Also fingers top lawyer Mkono

THISDAY REPORTER
Dar es Salaam ​

Prominent local businessmen Subbash Patel and Jeetu Patel were among high-profile individuals implicated by a parliamentary probe team in the alleged embezzlement of Debt Conversion Programme (DCP) funds from the Bank of Tanzania (BoT) way back in the 1990s, it has been established.

According to the findings of the 1994 parliamentary committee investigation led by the then Rorya legislator, Ayombe Ayila, both Subbash and Jeetu were among beneficiaries of dubious payments made by the BoT under the DCP banner, in a scam that bore all the hallmarks of the present-day EPA scandal.

While Jeetu has been charged with involvement the EPA scandal, he was never indicted for the DCP scam.

Subbash and other individuals linked to the DCP scandal also escaped prosecution despite the scathing report of the Ayila probe team.

They were primarily investigating the involvement of another controversial businessman, Vidyadhar Girdharlal (V.G) Chavda, in the DCP scam, and in the process stumbled upon the fraudulent payments also made to Jeetu Patel and Subbash Patel.

The committee's report said there was a dubious relationship between V.G Chavda's plantations that received fraudulent payments from the BoT, and Subash Patel through his various companies including DECO ART, M.M Motors, MM Garage, Hotel Sea Cliff and City Bureau De Change.

The Ayila committee report also raised suspicions over business dealings between Chavda and prominent lawyer Nimrod Mkono.

''It is claimed that V.G Chavda was re-assigned the debts of DECO ART, a company owned by Subbash Patel, which also claimed to have initially assumed the debts from Lazard Brothers, a UK company,'' says the report.

It continues: ''After Chavda received payments from the central bank, Chavda in turn paid Subbash Patel through his companies - M.M Motors and M.M Garage - a total of 515,995,375/-, on the pretext that these companies had supplied various equipments, tools and machinery for his plantations on credit.''

However, the report also noted that the same funds paid by Chavda to M.M Motors were later used to purchase foreign exchange currency from City Bureau De Change, which is also owned by Subbash Patel.

The report said there was a fraudulent relationship between Chavda and Subbash, that facilitated the looting of the public funds from the central bank.

Mkono, who was Chavda's lawyer at the time, reportedly filed a High Court application seeking a permanent injunction to stop the work of the Ayila committee.

''This is the same lawyer (Mkono) who witnessed the re-assignment of the (DCP) debts to Chavda,'' says the report.

Apart from his continuing capacity as proprietor of the Mkono & Company Advocates law firm, Mkono also currently serves as member of parliament for the Musoma Rural constituency.

Further reveals the report: ''There is something fishy here...Nimrod Mkono was also the resident director of Oxford Services Limited, and is also the proprietor of Marcus Limited - companies that both benefited from a total of 4,477,870,279.61/- from the DCP funds.''

The Ayila committee also traced illegal payments from the central bank to several companies owned by Patel, including Azania Agricultural Enterprises, Liberty Leather Shoe Limited, and Azania Eximco, all of which fall under the AIMS Group of companies.

Fresh investigations by THISDAY have established that the committee questioned Jeetu Patel on September 9, 1994, as part of its investigation of the DCP scandal.

''Jeetu Patel conspired in the preparation of forged documents purporting to show that he received 82,295,000/- from V.G Chavda for consultancy fees, stationeries, printing and equipment. A report from the office of the Director of Criminal Investigation (DCI) revealed that such payments were false,'' asserted the committee�s final report.

It quoted the then home affairs minister, Augustine Mrema, as saying that both Jeetu Patel and V.G Chavda were fraudulently paid out of the DCP funds a total of 661,274,660/-, without practically producing any goods or services.

In its recommendations, the committee advised that a formal government investigation be launched into Jeetu Patel and the whole DCP programme.

The committee also recommended that V.G Chavda should be declared a prohibited immigrant (PI) and formally charged with embezzlement of funds from the Bank of Tanzania.

Although Chavda was indeed kicked out of the country in 1996, he returned a few years later, and is understood to be still living in Dar es Salaam, while efforts by the Attorney General's Chambers to enforce the PI notice and a High Court ruling against his continued stay in the country have failed so far.

The Chavda saga resurfaced in parliament last month with Kigoma North legislator Zitto Kabwe seeking answers from the government as to why Chavda was still residing in Tanzania.

Responding in the august House, Prime Minister Mizengo Pinda said he was not aware of the matter, and pledged to make a follow-up.

 

[Morani75]

Shabash, jamani hivi kunani huku nchini kwetu jamani manake kila siku kuna ishu mpya ya madongo.....

 

[Utatu]

Maigizo bado yanaendelea kama kawaida ya waTanzania. Kila kukicha wezi ni walewale, nyayo zao zipo kila mahali halafu Raisi wa nchi anakwenda bungeni kutoa hotuba anasema hataweza kuwashitaki. Eti haki za binadamu. Na watu wa kawaida ambao njia za kuwaibia zinasukwa miaka na miaka pasipo wao kujua ni nani anawatetea? JK na washirika wake kweli ni wasanii. Muda wao umefika. Kuna siku amabayo hawaamini kuwa itatokekea lakini watakujakuozea jela!

 

[Zogwale]

Ni lazima tuwe na Rais ambaye ataamua kwa dhati ku nationalize investments zote ambazo kisheria zime proove kuwa hazijapatikana kwa uhalali, hata kama ni za wazawa sitajali. Kumbe utajiri wa hawa akina Patel na Asians ukiuchunguza utakuta source zao ni tatanishi. Ila basi je tunao dedicated and competent Public prosecutors/lawyers?? Hili ni eneo lingine lenye mashaka. Kweli inaniuma sana jinsi ambavyo kizazi cha Tanzania tunaangamia kwa kukosa maarifa, wahindi wanatudharau sana wakiwa na sababu.

 

[mannymm]

E=BAK;458848][COL"Scandals and Corruptions will only cease if there is a political will and tighter controls"
( " Some 20 years ago DCP program brought headline news for many months . This lead to resignation of Mhe Augustine MREMA and Chavda gate issues.
In an Indian ocean overlooking from two of the DCP program Hotels one could see that the
government officials,authourities and investigators were catching only "dagala" and not "papa" . Media and people of Tanzania gave up together with MREMA on this dragging tactics by the "officials of the government " of the day. Never mind catching the "papa" the dream was not there !!
Had the investigators gone deep into this"Indian ocean" they would have caught not only "papa" but many large fish"easily.But was not possible due to corruption at highest level.
This group have now formed a syndicate and are manipulating through religious and other charitable organisation for their gains. DCP was a "chicken feed" they operate or have operated through external banks and companies , misuse TIC,exemptions and sometimes VIP lounges and customs. Millions of dollars of false accounting and "bogus" investments schemes are normal practises of this group and syndicate."Majority Local and ordinary Tanzanians " do not stand a chance competing for any schemes and program's while they enjoy special schemes and exemptions tailored by the gang of corrupts.
What an injustice to MREMA and majority of Tanzanians who have a dream of decent Tanzania. The same group or individuals for decades have been involved in many other scandals in Tanzania and corruption is rife through bogus companies and their external operations at the highest levels.
Nobody including Bunge investing committee asked or were told to ask or reveal the Directors or Partners in Decco Art, MM Motors Or Hotel Seacliff . Had they done it they would been a real political troubles. The people involved were saved and country sacrificed by politicians and officials.
By the way where are those companies now and who are the partners now and how did they became partners!! The proof is in the pudding!!
About time the government of the day took some positive actions against corruptions and bring in transparency and accountability in all sectors.Also who owns what and how they acquired this kind of wealth led by an independent body.
Time for a positive change or face a revolution.
In the meanwhile scandals and corruptions will continue unless you have reforms,reforms and reforms lead by The President .")OR="Blue"]

Revelations in DCP fraud case: Bunge report implicates Subbash and Jeetu Patel

DUBIOUS DEALINGS Nimrod Mkono
-Names them alongside V.G Chavda
-Also fingers top lawyer Mkono

THISDAY REPORTER
Dar es Salaam ​

Prominent local businessmen Subbash Patel and Jeetu Patel were among high-profile individuals implicated by a parliamentary probe team in the alleged embezzlement of Debt Conversion Programme (DCP) funds from the Bank of Tanzania (BoT) way back in the 1990s, it has been established.

According to the findings of the 1994 parliamentary committee investigation led by the then Rorya legislator, Ayombe Ayila, both Subbash and Jeetu were among beneficiaries of dubious payments made by the BoT under the DCP banner, in a scam that bore all the hallmarks of the present-day EPA scandal.

While Jeetu has been charged with involvement the EPA scandal, he was never indicted for the DCP scam.

Subbash and other individuals linked to the DCP scandal also escaped prosecution despite the scathing report of the Ayila probe team.

They were primarily investigating the involvement of another controversial businessman, Vidyadhar Girdharlal (V.G) Chavda, in the DCP scam, and in the process stumbled upon the fraudulent payments also made to Jeetu Patel and Subbash Patel.

The committee’s report said there was a dubious relationship between V.G Chavda’s plantations that received fraudulent payments from the BoT, and Subash Patel through his various companies including DECO ART, M.M Motors, MM Garage, Hotel Sea Cliff and City Bureau De Change.

The Ayila committee report also raised suspicions over business dealings between Chavda and prominent lawyer Nimrod Mkono.

’’It is claimed that V.G Chavda was re-assigned the debts of DECO ART, a company owned by Subbash Patel, which also claimed to have initially assumed the debts from Lazard Brothers, a UK company,’’ says the report.

It continues: ’’After Chavda received payments from the central bank, Chavda in turn paid Subbash Patel through his companies - M.M Motors and M.M Garage - a total of 515,995,375/-, on the pretext that these companies had supplied various equipments, tools and machinery for his plantations on credit.’’

However, the report also noted that the same funds paid by Chavda to M.M Motors were later used to purchase foreign exchange currency from City Bureau De Change, which is also owned by Subbash Patel.

The report said there was a fraudulent relationship between Chavda and Subbash, that facilitated the looting of the public funds from the central bank.

Mkono, who was Chavda’s lawyer at the time, reportedly filed a High Court application seeking a permanent injunction to stop the work of the Ayila committee.

’’This is the same lawyer (Mkono) who witnessed the re-assignment of the (DCP) debts to Chavda,’’ says the report.

Apart from his continuing capacity as proprietor of the Mkono & Company Advocates law firm, Mkono also currently serves as member of parliament for the Musoma Rural constituency.

Further reveals the report: ’’There is something fishy here...Nimrod Mkono was also the resident director of Oxford Services Limited, and is also the proprietor of Marcus Limited - companies that both benefited from a total of 4,477,870,279.61/- from the DCP funds.’’

The Ayila committee also traced illegal payments from the central bank to several companies owned by Patel, including Azania Agricultural Enterprises, Liberty Leather Shoe Limited, and Azania Eximco, all of which fall under the AIMS Group of companies.

Fresh investigations by THISDAY have established that the committee questioned Jeetu Patel on September 9, 1994, as part of its investigation of the DCP scandal.

’’Jeetu Patel conspired in the preparation of forged documents purporting to show that he received 82,295,000/- from V.G Chavda for consultancy fees, stationeries, printing and equipment. A report from the office of the Director of Criminal Investigation (DCI) revealed that such payments were false,’’ asserted the committee�s final report.

It quoted the then home affairs minister, Augustine Mrema, as saying that both Jeetu Patel and V.G Chavda were fraudulently paid out of the DCP funds a total of 661,274,660/-, without practically producing any goods or services.

In its recommendations, the committee advised that a formal government investigation be launched into Jeetu Patel and the whole DCP programme.

The committee also recommended that V.G Chavda should be declared a prohibited immigrant (PI) and formally charged with embezzlement of funds from the Bank of Tanzania.

Although Chavda was indeed kicked out of the country in 1996, he returned a few years later, and is understood to be still living in Dar es Salaam, while efforts by the Attorney General’s Chambers to enforce the PI notice and a High Court ruling against his continued stay in the country have failed so far.

The Chavda saga resurfaced in parliament last month with Kigoma North legislator Zitto Kabwe seeking answers from the government as to why Chavda was still residing in Tanzania.

Responding in the august House, Prime Minister Mizengo Pinda said he was not aware of the matter, and pledged to make a follow-up. [/COLOR][/QUOTE]