BoT Twin Towers insured at $332m: Original construction cost estimate was just $89.05

[BAK]

BoT Twin Towers insured at $332m: Original construction cost estimate was just $89.05m

THISDAY REPORTER
Dar es Salaam

AUDITORS have raised serious queries regarding a major insurance policy taken out by the Bank of Tanzania (BoT) on its controversial Twin Towers headquarters building.

In a recently released report on the Central Bank’s 2006/07 accounts, international audit firm Ernst & Young reveals that the ongoing Twin Towers construction project was valued at $332m (approx. 400bn/-) for insurance purposes.

The auditors uncovered that the BoT under its then governor, the late Daudi Ballali, paid an insurance premium of more than $1.2m (in excess of 1.4bn/-) for the project, without getting a valid contract from the insurers.

According to the audit findings, the huge premium was paid to the Alexander Forbes company, which acted as an insurance broker.

The main insurers of the project are the South African-based Santam Limited and Scintilla Insurance companies.

The Twin Towers extension project, located at 10 Mirambo Street in Dar es Salaam, has generated considerable controversy with experts saying the construction costs were inflated by at least four times the value of similar buildings in some of the world’s most expensive cities like London, New York and Tokyo.

’’The (central) bank is exposed to insurable risks in case an insurable event occurs on the 10 Mirambo extension project. The bank may not recover anything from the insurance claim, although the premiums have been paid to the insurance broker - Alexander Forbes,’’ says part of the audit report.

It warns that ’’in the absence of the possession (by the BoT) of the valid (insurance) policy or contract, no valid claim can be lodged and be enforceable under the law.’’

The audit report shows that the BoT initially paid Alexander Forbes a premium of $873,673, based on a valuation of the BoT Twin Towers project at $315m (approx. 370bn/-).

However, the project was later revalued at $332m, forcing the BoT to pay an additional premium amounting to $350,224.20.

’’The main insurers as indicated on the documents of M/S Alexander Forbes are Santam Limited and Scintilla Insurance Company,’’ says the report.

It continues: ’’When we requested the valid insurance policies or contracts for validation, we got photocopies of the expired insurance policy No. S0059103 of Santam Limited, which expired on 23 February 2003, and another insurance policy No. NRP/CS31/ENG/00106/CAR0152 from Nova Risk Partners, which expired on 23 February 2006.’’

In their recommendations, the auditors advised the BoT management to investigate the matter and the relationship with the insurance broker to establish why the central bank was not given a valid insurance contract despite paying such a large premium.

’’We (auditors) also advise the internal audit department of the BoT to carefully review all insurance documents of the (Twin Towers) project, since our concern was for the current year audit (2006/07), but the contracts expired in prior periods without immediate replacement,’’ says the report.

Sources say that on the basis of this advice from the auditors, the new BoT management under Ballali’s successor as governor, Prof. Beno Ndulu, managed to locate the original insurance policy documents for the Twin Towers project, which were handed over to the central bank’s director of internal audit.

According to the sources, after verification of the documents, the BoT director of internal audit was expected to hand them over to the auditors.

The BoT management has pledged to investigate the insurance contract as recommended by the auditors.

Ernst & Young, which conducted the 2006/07 BoT audit on behalf of the Controller and Auditor General (CAG), is the same audit company that uncovered the embezzlement of more than 133bn/- from the bank’s external payment arrears (EPA) account during 2005/06.

According to BoT financial statements dating back to the year 2004, the resplendent Twin Towers project was initially estimated to cost just $89.05m (approx. 105bn/-).

The central bank’s financial report for the same year showed that it also entered into another contract for the construction of new main office premises in Zanzibar’s Gulioni area, at a cost of $25.5m (approx. 30bn/-).

 

[jmushi1]

Bubu mimi ushauri wangu binafsi ni kuwa tuhangaike kwanza na yale tunayoyajuwa kwanza.

Sasa kuhangaika na insurance na wakati hata data za ujenzi na gharama hazina mantiki ni kuendeleza tu malumbano na kuacha kupambana vilivyo....Insurance ni halali kama ujenzi wenyewe haujatupiwa macho.

Kujaribu ku fix hiyo insurance ni swa na kujaribu kuhalalisha ujenzi wa hizo twin towers..Ni sawa na kauli moja iliyowahi kutolewa bungeni kuwa makampuni yenye kashfa za EPA yalipe kodi.

Ni kweli na inashangaza insurance itakuwa vipi ghali kuliko hata gharama za Ujenzi na Towers zenyewe?

Si ni sawa tu na walivyopandisha bei ya diesel licha ya kwamba kiutaratibu ilitakiwa bei yake iwe chini kuliko petrol kutokana na grade zake.

Huku watu wakiendelea kuuwawa ama kuuwana ama kufa kiutata..Bado tu mambo kama EPA na Richmond hayajashughulikiwa..Na hivyo kuendelea kutowa mikashfa kila siku bila ya kushughulikia zile muhimu sana ambazo kwa kusema ukweli zinge fix matatizo yote hayo.

Kwa mfano kashfa ya EPA ina uwezo wa kuyashughulikia mambo haya na hilo la insurance litakuwa ni swala na umaliziaji tu....Richomd.madini etc...Labda hata vifo vya Ballali na Wangwe visingekuwepo.

Ni just my perceptions...Naweza kuwa WRONG.

 

[think BIG]

Unajua nani wako nyuma ya "Alexander Forbes (T) Ltd"! Abdulrahman Omari Kinana pamoja na Sir Andy Chande

 

[BAK]

Bubu mimi ushauri wangu binafsi ni kuwa tuhangaike kwanza na yale tunayoyajuwa kwanza.

Sasa kuhangaika na insurance na wakati hata data za ujenzi na gharama hazina mantiki ni kuendeleza tu malumbano na kuacha kupambana vilivyo....Insurance ni halali kama ujenzi wenyewe haujatupiwa macho.

Kujaribu ku fix hiyo insurance ni swa na kujaribu kuhalalisha ujenzi wa hizo twin towers..Ni sawa na kauli moja iliyowahi kutolewa bungeni kuwa makampuni yenye kashfa za EPA yalipe kodi.

Ni kweli na inashangaza insurance itakuwa vipi ghali kuliko hata gharama za Ujenzi na Towers zenyewe?

Si ni sawa tu na walivyopandisha bei ya diesel licha ya kwamba kiutaratibu ilitakiwa bei yake iwe chini kuliko petrol kutokana na grade zake.

Huku watu wakiendelea kuuwawa ama kuuwana ama kufa kiutata..Bado tu mambo kama EPA na Richmond hayajashughulikiwa..Na hivyo kuendelea kutowa mikashfa kila siku bila ya kushughulikia zile muhimu sana ambazo kwa kusema ukweli zinge fix matatizo yote hayo.

Kwa mfano kashfa ya EPA ina uwezo wa kuyashughulikia mambo haya na hilo la insurance litakuwa ni swala na umaliziaji tu....Richomd.madini etc...Labda hata vifo vya Ballali na Wangwe visingekuwepo.

Ni just my perceptions...Naweza kuwa WRONG.

Mushi, Ni lazima uozo wote ufichuliwe sasa maana kila kona kuna uozo hakuna haja ya kusubiri kwa sababu nadhani Watanzania wengi wana uwezo wa kujadili uozo wote ndani ya chama cha mafisadi, sirikali na BoT kwa wakati mmoja bila matatizo yoyote.

 

[Gaijin]

kuleni baba .....nchi yenu hii! sie tulobakia tutatumbua macho tu

 

[MiratKad]

Mushi, Ni lazima uozo wote ufichuliwe sasa maana kila kona kuna uozo hakuna haja ya kusubiri kwa sababu nadhani Watanzania wengi wana uwezo wa kujadili uozo wote ndani ya chama cha mafisadi, sirikali na BoT kwa wakati mmoja bila matatizo yoyote.

Sawa kabisa mzee. Kwenye kujadili hakuja haja ya kusubiri...

 

[Kuhani]

The auditors uncovered that the BoT under its then governor, the late Daudi Ballali, paid an insurance premium of more than $1.2m (in excess of 1.4bn/-) for the project, without getting a valid contract from the insurers.

It warns that ''in the absence of the possession (by the BoT) of the valid (insurance) policy or contract, no valid claim can be lodged and be enforceable under the law.''

It continues: ''When we requested the valid insurance policies or contracts for validation, we got photocopies of the expired insurance policy No. S0059103 of Santam Limited, which expired on 23 February 2003, and another insurance policy No. NRP/CS31/ENG/00106/CAR0152 from Nova Risk Partners, which expired on 23 February 2006.''

In their recommendations, the auditors advised the BoT management to investigate the matter and the relationship with the insurance broker to establish why the central bank was not given a valid insurance contract despite paying such a large premium.

The BoT management has pledged to investigate the insurance contract as recommended by the auditors.

No no no no....Hii kazi ndio tuliwalipa wakaguzi Ernst & Young waifanye. Wao Ernst & Young walipoomba waonyeshwe mkataba wa Bima na hawakupewa ulio valid, kwa nini wao Ernst & Young wasiwaulize BOT kwa nini BOT hawakupewa mkataba valid na mtoa Bima. Kwa sababu sasa wanashauri uchunguzi mwingine ufanywe. Unaona mchezo hapo.

Yani kina Ndullu wamepoteza au hawakupewa nakala yao ya Bima!

Marekani wakaguzi wakienda kwenye ofisi ambazo ziko regulated wakiomba document fulani wanaanza kuhesabu muda unaokuchukua kuitoa kwenye ma shelves - achilia mbali kama utaipata au huipati. Wakati mwingine muda unaotegemewa ni a matter of minutes. Ukichelewe, ukaanza kuoneka huna uhakika document zilipo ni ishara ya ufisadi. Kwanza wanaweza kukuomba orodha inayooshesha document zote muhimu zilipo halafu wakaenda wao kuangalia kama ipo hapo. Na wanaweza wakaomba rekodi zote za traffic ya hizo document kutoka kwa ofisa mmoja chumba kimoja kwenda kwa mfanyakazi mwingine chumba kingine kwa kipindi chote kinachofanyiwa ukaguzi. Gotta have all that stuff on record. Sio kina Ndullu hapa wanasema wakaenda kuzitafuta baada ya wakaguzi kuondoka !

Kwa atakaesema Bongo sio Marekani nadhani ni wrong excuse kwa sababu hicho ni kitu kidogo ambacho hata sisi tunatakiwa tukiweze.

 

[Hofstede]

Sooner or Later Tanzanians have to take the justice in their own hands, Remove CCM from power, if they rig votes we have to sacrifice like what kenyans did. Then confiscate the stolen assets from them and bring them to justice for "Plundering the economy and prosperity of Tanzanians" charges, those found guilty HANG them. this is the only solution to get the country back to TANZANIANS, remove these bandits Called CCM from power.

 

[Katibu Tarafa]

Sooner or Later Tanzanians have to take the justice in their own hands, Remove CCM from power, if they rig votes we have to sacrifice like what kenyans did. Then confiscate the stolen assets from them and bring them to justice for "Plundering the economy and prosperity of Tanzanians" charges, those found guilty HANG them. this is the only solution to get the country back to TANZANIANS, remove these bandits Called CCM from power.

labda mugabe afe

 

[DAR si LAMU]

labda mugabe afe

..una maana tanzania = zimbabwe?