Lekanjobe Kubinika
JF-Expert Member
- Dec 6, 2006
- 3,020
- 576
Sent: Sun Mar 14th, 2010 7:33 PM PDT
Subject: [TAFESAssociates] Confirmed: Radar billions destined to local charities
In the wake of British Aerospace Engineering System's agreement recently to
pay $400million(Sh540billion) in fines after admitting that its arms deals,
including the controversial radar sold to Tanzania, the UK based company has confirmed that the compensation billions won't be paid to the government's coffer.
In an email sent to this paper on Saturday, BAE confirmed that the
$47million which is a penalty for over-pricing the radar price won't be paid to the government as claimed earlier, insisting that the billions would be given to local charities dealing with humanitarian aid.
The BAE's confirmation ends high hopes that Tanzania would finally get its
stolen billions which, were swindled by the radar brokers, some government
officials as well as BAE officers during the controversial deal.
"We have decided that the fine for accounting error for Tanzania radar will
be paid to selected charities not the government." Read part of the email
sent to The Guardian on Sunday yesterday.
In January the British arms firm accepted guilt and agreed to pay penalties
in the US and the UK totalling several hundred million dollars to settle the long-running corruption allegations against it. Under the deal, announced simultaneously in London and Washington, BAE will pay $400m (£255) in the US and $47m (£30m) in the UK. In its comprehensive investigation, UK's Serious Fraud Office named Andrew Chenge, Sailesh Vithlani, Tanil Somaiya, and Dr Idris Rashidi as the key suspects linked to suspicious payments amounting to $12million doled out by the BAE System broker in Dar es Salaam.
The deal with the SFO in the UK covers one arms contract only, under which
overpriced military radar was sold to Tanzania. The SFO said some of the
cash would become "an ex gratia payment for the benefit of the people of
Tanzania".
According to details from the SFO's investigation, the actual price of the
military radar sold to Tanzania at that time was $12million, but Tanzania
paid about $40million with the extra $28million going into the pockets of
those involved, both government officials and private individuals.
Under the new deal between the SFO and BAE System announced on Friday,
Tanzania may get a refund of $28 million (Sh37.8 billion)-an amount that
could pay for 9,500 students to pursue their undergraduate studies for two
years or provide 7.4 million families with treated mosquito nets at a cost
of Sh5,000 per net.
In 2006, the UK investigators established that BAE System had secretly paid
a $12m commission into the Swiss bank account of Sailesh Vithlani in a deal
that led to Tanzania, one of the world's poorest countries, buying a
military radar system with only nominal justification.
The back-door payment to the Tanzanian middleman represented 30 percent of
the contract value. Tanzania had to borrow to finance the deal, which
critics said was unnecessary and overpriced.
Recently, Minister for Foreign Affairs Benard Membe, insisted that the $47
million compensation should be paid to the government's coffer and not
otherwise, but the BAE's stance confirmed yesterday is expected to create
another conflict between Dar es Salaam and London.
It's not clear why BAE is not willing to pay $47million directly to the
government of Tanzania.
However, some legal analysts believe that BAE has chosen that path to avoid
any legal implications that may arise if Tanzania finally chose to arrest
and prosecute the key radar suspects.
By paying the billions to charity organisations, it would look like donation donated by the company through its corporate social responsibility.
Suzan Hawley of Corruption Watch, a UK based anti graft watchdog currently
pursuing the BAE corruption scandal, said: "This is a trick chosen by BAE to avoid being implicated directly by third party, but it's an old style that won't get them off the hook."
Corruption Watch has filed an application at UK court seeking the review of
the SFO and BAE settlement agreements reached few months ago. The Guardian
on Sunday has also learnt that last week the UK court issued an injunction
barring BAE from proceeding with any settlement agreements pending the
hearing of the main suit.
SOURCE: GUARDIAN ON SUNDAY (
http://www.ippmedia.com/frontend/index.php?l=14439)
----Forwarded Message----
From: mtuive@yahoo.com
To:
To:
Sent: Sun Mar 14th, 2010 7:33 PM PDT
Subject: [TAFESAssociates] Confirmed: Radar billions destined to local charities
In the wake of British Aerospace Engineering System's agreement recently to pay $400million( Sh540billion) in fines after admitting that its arms deals, including the controversial radar sold to Tanzania, the UK based company has confirmed that the compensation billions won't be paid to the government's coffer.
In an email sent to this paper on Saturday, BAE confirmed that the $47million which is a penalty for over-pricing the radar price won't be paid to the government as claimed earlier, insisting that the billions would be given to local charities dealing with humanitarian aid.
The BAE's confirmation ends high hopes that Tanzania would finally get its stolen billions which, were swindled by the radar brokers, some government officials as well as BAE officers during the controversial deal.
"We have decided that the fine for accounting error for Tanzania radar will be paid to selected charities not the government." Read part of the email sent to The Guardian on Sunday yesterday.
In January the British arms firm accepted guilt and agreed to pay penalties in the US and the UK totalling several hundred million dollars to settle the long-running corruption allegations against it. Under the deal, announced simultaneously in London and Washington, BAE will pay $400m (£255) in the US and $47m (£30m) in the UK. In its comprehensive investigation, UK's Serious Fraud Office named Andrew Chenge, Sailesh Vithlani, Tanil Somaiya, and Dr Idris Rashidi as the key suspects linked to suspicious payments amounting to $12million doled out by the BAE System broker in Dar es Salaam.
The deal with the SFO in the UK covers one arms contract only, under which overpriced military radar was sold to Tanzania. The SFO said some of the cash would become "an ex gratia payment for the benefit of the people of Tanzania".
According to details from the SFO's investigation, the actual price of the military radar sold to Tanzania at that time was $12million, but Tanzania paid about $40million with the extra $28million going into the pockets of those involved, both government officials and private individuals.
Under the new deal between the SFO and BAE System announced on Friday, Tanzania may get a refund of $28 million (Sh37.8 billion)-an amount that could pay for 9,500 students to pursue their undergraduate studies for two years or provide 7.4 million families with treated mosquito nets at a cost of Sh5,000 per net.
In 2006, the UK investigators established that BAE System had secretly paid a $12m commission into the Swiss bank account of Sailesh Vithlani in a deal that led to Tanzania, one of the world's poorest countries, buying a military radar system with only nominal justification.
The back-door payment to the Tanzanian middleman represented 30 percent of the contract value. Tanzania had to borrow to finance the deal, which critics said was unnecessary and overpriced.
Recently, Minister for Foreign Affairs Benard Membe, insisted that the $47 million compensation should be paid to the government's coffer and not otherwise, but the BAE's stance confirmed yesterday is expected to create another conflict between Dar es Salaam and London.
It's not clear why BAE is not willing to pay $47million directly to the government of Tanzania.
However, some legal analysts believe that BAE has chosen that path to avoid any legal implications that may arise if Tanzania finally chose to arrest and prosecute the key radar suspects.
By paying the billions to charity organisations, it would look like donation donated by the company through its corporate social responsibility.
Suzan Hawley of Corruption Watch, a UK based anti graft watchdog currently pursuing the BAE corruption scandal, said: "This is a trick chosen by BAE to avoid being implicated directly by third party, but it's an old style that won't get them off the hook."
Corruption Watch has filed an application at UK court seeking the review of the SFO and BAE settlement agreements reached few months ago. The Guardian on Sunday has also learnt that last week the UK court issued an injunction barring BAE from proceeding with any settlement agreements pending the hearing of the main suit. SOURCE: GUARDIAN ON SUNDAY (http://www.ippmedia .com/frontend/ index.php? l=14439)
Subject: [TAFESAssociates] Confirmed: Radar billions destined to local charities
In the wake of British Aerospace Engineering System's agreement recently to
pay $400million(Sh540billion) in fines after admitting that its arms deals,
including the controversial radar sold to Tanzania, the UK based company has confirmed that the compensation billions won't be paid to the government's coffer.
In an email sent to this paper on Saturday, BAE confirmed that the
$47million which is a penalty for over-pricing the radar price won't be paid to the government as claimed earlier, insisting that the billions would be given to local charities dealing with humanitarian aid.
The BAE's confirmation ends high hopes that Tanzania would finally get its
stolen billions which, were swindled by the radar brokers, some government
officials as well as BAE officers during the controversial deal.
"We have decided that the fine for accounting error for Tanzania radar will
be paid to selected charities not the government." Read part of the email
sent to The Guardian on Sunday yesterday.
In January the British arms firm accepted guilt and agreed to pay penalties
in the US and the UK totalling several hundred million dollars to settle the long-running corruption allegations against it. Under the deal, announced simultaneously in London and Washington, BAE will pay $400m (£255) in the US and $47m (£30m) in the UK. In its comprehensive investigation, UK's Serious Fraud Office named Andrew Chenge, Sailesh Vithlani, Tanil Somaiya, and Dr Idris Rashidi as the key suspects linked to suspicious payments amounting to $12million doled out by the BAE System broker in Dar es Salaam.
The deal with the SFO in the UK covers one arms contract only, under which
overpriced military radar was sold to Tanzania. The SFO said some of the
cash would become "an ex gratia payment for the benefit of the people of
Tanzania".
According to details from the SFO's investigation, the actual price of the
military radar sold to Tanzania at that time was $12million, but Tanzania
paid about $40million with the extra $28million going into the pockets of
those involved, both government officials and private individuals.
Under the new deal between the SFO and BAE System announced on Friday,
Tanzania may get a refund of $28 million (Sh37.8 billion)-an amount that
could pay for 9,500 students to pursue their undergraduate studies for two
years or provide 7.4 million families with treated mosquito nets at a cost
of Sh5,000 per net.
In 2006, the UK investigators established that BAE System had secretly paid
a $12m commission into the Swiss bank account of Sailesh Vithlani in a deal
that led to Tanzania, one of the world's poorest countries, buying a
military radar system with only nominal justification.
The back-door payment to the Tanzanian middleman represented 30 percent of
the contract value. Tanzania had to borrow to finance the deal, which
critics said was unnecessary and overpriced.
Recently, Minister for Foreign Affairs Benard Membe, insisted that the $47
million compensation should be paid to the government's coffer and not
otherwise, but the BAE's stance confirmed yesterday is expected to create
another conflict between Dar es Salaam and London.
It's not clear why BAE is not willing to pay $47million directly to the
government of Tanzania.
However, some legal analysts believe that BAE has chosen that path to avoid
any legal implications that may arise if Tanzania finally chose to arrest
and prosecute the key radar suspects.
By paying the billions to charity organisations, it would look like donation donated by the company through its corporate social responsibility.
Suzan Hawley of Corruption Watch, a UK based anti graft watchdog currently
pursuing the BAE corruption scandal, said: "This is a trick chosen by BAE to avoid being implicated directly by third party, but it's an old style that won't get them off the hook."
Corruption Watch has filed an application at UK court seeking the review of
the SFO and BAE settlement agreements reached few months ago. The Guardian
on Sunday has also learnt that last week the UK court issued an injunction
barring BAE from proceeding with any settlement agreements pending the
hearing of the main suit.
SOURCE: GUARDIAN ON SUNDAY (
http://www.ippmedia.com/frontend/index.php?l=14439)
----Forwarded Message----
From: mtuive@yahoo.com
To:
To:
Sent: Sun Mar 14th, 2010 7:33 PM PDT
Subject: [TAFESAssociates] Confirmed: Radar billions destined to local charities
In the wake of British Aerospace Engineering System's agreement recently to pay $400million( Sh540billion) in fines after admitting that its arms deals, including the controversial radar sold to Tanzania, the UK based company has confirmed that the compensation billions won't be paid to the government's coffer.
In an email sent to this paper on Saturday, BAE confirmed that the $47million which is a penalty for over-pricing the radar price won't be paid to the government as claimed earlier, insisting that the billions would be given to local charities dealing with humanitarian aid.
The BAE's confirmation ends high hopes that Tanzania would finally get its stolen billions which, were swindled by the radar brokers, some government officials as well as BAE officers during the controversial deal.
"We have decided that the fine for accounting error for Tanzania radar will be paid to selected charities not the government." Read part of the email sent to The Guardian on Sunday yesterday.
In January the British arms firm accepted guilt and agreed to pay penalties in the US and the UK totalling several hundred million dollars to settle the long-running corruption allegations against it. Under the deal, announced simultaneously in London and Washington, BAE will pay $400m (£255) in the US and $47m (£30m) in the UK. In its comprehensive investigation, UK's Serious Fraud Office named Andrew Chenge, Sailesh Vithlani, Tanil Somaiya, and Dr Idris Rashidi as the key suspects linked to suspicious payments amounting to $12million doled out by the BAE System broker in Dar es Salaam.
The deal with the SFO in the UK covers one arms contract only, under which overpriced military radar was sold to Tanzania. The SFO said some of the cash would become "an ex gratia payment for the benefit of the people of Tanzania".
According to details from the SFO's investigation, the actual price of the military radar sold to Tanzania at that time was $12million, but Tanzania paid about $40million with the extra $28million going into the pockets of those involved, both government officials and private individuals.
Under the new deal between the SFO and BAE System announced on Friday, Tanzania may get a refund of $28 million (Sh37.8 billion)-an amount that could pay for 9,500 students to pursue their undergraduate studies for two years or provide 7.4 million families with treated mosquito nets at a cost of Sh5,000 per net.
In 2006, the UK investigators established that BAE System had secretly paid a $12m commission into the Swiss bank account of Sailesh Vithlani in a deal that led to Tanzania, one of the world's poorest countries, buying a military radar system with only nominal justification.
The back-door payment to the Tanzanian middleman represented 30 percent of the contract value. Tanzania had to borrow to finance the deal, which critics said was unnecessary and overpriced.
Recently, Minister for Foreign Affairs Benard Membe, insisted that the $47 million compensation should be paid to the government's coffer and not otherwise, but the BAE's stance confirmed yesterday is expected to create another conflict between Dar es Salaam and London.
It's not clear why BAE is not willing to pay $47million directly to the government of Tanzania.
However, some legal analysts believe that BAE has chosen that path to avoid any legal implications that may arise if Tanzania finally chose to arrest and prosecute the key radar suspects.
By paying the billions to charity organisations, it would look like donation donated by the company through its corporate social responsibility.
Suzan Hawley of Corruption Watch, a UK based anti graft watchdog currently pursuing the BAE corruption scandal, said: "This is a trick chosen by BAE to avoid being implicated directly by third party, but it's an old style that won't get them off the hook."
Corruption Watch has filed an application at UK court seeking the review of the SFO and BAE settlement agreements reached few months ago. The Guardian on Sunday has also learnt that last week the UK court issued an injunction barring BAE from proceeding with any settlement agreements pending the hearing of the main suit. SOURCE: GUARDIAN ON SUNDAY (http://www.ippmedia .com/frontend/ index.php? l=14439)
