Banks involved in scam to be investigated Published in: Legalbrief Africa Date: Mon 07 July 2008 Category: Tanzania Issue No: 288 All commercial banks that handled and processed monies and payments related to the Bank of Tanzania's external payments arrears (EPA) scandal are to be investigated under the recently enacted Money Laundering Act. This is in terms of the commitment that the government made to the International Monetary Fund (IMF) which is reviewing the country's performance under an IMF programme. The details are contained in a report by the mission that has been published by the Fund. The East African Standard reports that the revelations came in the wake of a statement by Finance Minister Mustafa Mkulo that has been widely interpreted as signalling a lack of political commitment to closing the chapter on one of the worst scandals to hit the country's central bank in years. Eyebrows were raised when Mkulo said the funds in the EPA scam belonged to a number of private firms and that the Bank of Tanzania was just an 'agent'. A special audit of the EPA account at the Bank of Tanzania conducted by Ernst & Young Co on behalf of the Controller and Auditor-General was concluded in 2007. It identified serious improprieties in the management of the account.