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BoT Governor reacts

Discussion in 'Habari na Hoja mchanganyiko' started by Ngongo, Apr 6, 2009.

  1. Ngongo

    Ngongo JF-Expert Member

    Apr 6, 2009
    Joined: Sep 20, 2008
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    Bank of Tanzania (BoT) Governor Prof Beno Ndullu has responded to allegations levelled against the Central Bank over public funds reportedly spent on paying law firms handling its cases, saying his management is taking care of the malpractice.

    Speaking to The Guardian on Sunday over the weekend, Prof Ndullu said it was true that after he assumed responsibilities at the Central Bank as governor, he noted that there were some questionable payments effected to law firms that handled its court cases.

    ``The queries over the payments were raised after an audit was conducted. Generally the `Value for Money` was not there for the assignments done by the law firms,`` he explained.

    He added: ``Besides that we also learnt that some highly costly contracts with legal firms were also questionable and the only alternative left for us to save the public money, was to nullify them.``

    Prof Ndullu said since he was appointed head of BoT, he has been trying to cleanse the house and put it in good order.

    However, he said there are some problems he has been encountering to the extent of forcing BoT to open cases to settle the legal disputes.

    He did not divulge details due to some legal restrictions. However, there are reports that after the Controller and Auditor General raised an alarm about 1bn/- paid as legal fees to Maregesi and Company Advocates, the verification on the questioned payments was issued.

    Following the move, it is alleged that CAG withdrew his earlier audit query reported in the 2007/8 auditing report of the BoT.

    The reaction from the governor has come in the wake of allegations raised by some BoT insiders, claiming that some Central Bank top officials were abusing office by using it for personal interests and gains.

    Some insiders claiming to be working in the office of the BoT executive secretary, wrote an open letter to the Director of the Prevention and Combating of Corruption Bureau (PCCB), claiming that some advocates were being paid much money by the central bank for services not commensurate with the assigned work.

    The letter was published in The Guardian on Sunday edition of March 29,2009. In the same letter, it was claimed that a senior official in the legal department office, was using the position he holds to twist, influence and also manufacture imaginary cases, whose handling was subsequently paid for by the bank.

    According to the insiders, the official in the legal department has been conspiring with private advocates directly dealing with him and subsequently instructing them to pursue the cases with a view to getting commissions.

    SOURCE: Sunday Observer