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Dar Bankers Face More Corruption Accusations

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BabuK, Apr 13, 2010.

  1. BabuK

    BabuK JF-Expert Member

    Apr 13, 2010
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    CORRUPTION investigators have uncovered troubling questions over the alleged involvement of senior bank officials in Tanzania in a massive financial fraud.

    Already some 3 billion/- is believed to have been stolen from the National Bank of Commerce Limited, Tanzania's largest commercial bank, as part of the financial services crime.

    According to latest THISDAY findings, graft investigators from the Prevention and Combating of Corruption Bureau (PCCB) last Friday questioned at least seven senior officials at NBC's headquarters in Dar es Salaam in connection with the theft of billions of shillings.

    "Corruption investigators from the PCCB spent several hours questioning senior NBC officials in Dar es Salaam from the credit and security documentation departments about the involvement in the matter," a well-placed official told THISDAY.

    She added: "Some senior bank executives and officials are accused of not following standard procedures in the execution of their duties, leading to the huge theft of funds."

    It is understood that a preliminary audit has discovered that some bank officials approved dubious payments, counter to bank policy.

    An internal probe at NBC has already led to the transfer and suspension of several bank officials.

    It is alleged that some officials at the bank's headquarters and branch offices may have colluded in the massive theft of funds.

    NBC has 56 branches across the country and employs more than 1,400 workers.

    PCCB director-general Dr Edward Hoseah, has already confirmed to THISDAY that a preliminary investigation shows the problem to be much bigger and complex than initially thought.

    Officials close to the investigation say several bank officials and private businessmen could face criminal charges as a result of the ongoing corruption investigation.

    The South African-based ABSA Group Limited, which owns 55 percent of the shares in NBC, recently brought a team of fraud experts from Johannesburg to investigate allegations of corruption and theft of billions of shillings at its Tanzanian subsidiary.

    The Tanzanian government is the second biggest shareholder of the bank with a 30 percent stake, while the International Finance Corporation (IFC), a private financing arm of the World Bank, owns the remaining shares.

    A team of about 10 fraud experts dispatched by ABSA Group Ltd. to Tanzania have already spent several days at NBC's headquarters in Dar es Salaam to analyse systems and documentation and grill bank employees.

    "A number of NBC employees have been suspended with full pay pending the outcome of the ongoing investigation," said another source who asked not to be named.

    "ABSA is keen to establish if the thefts were a result of isolated cases by a few bad apples or if the problem is much bigger than that," he added.

    In one incident, some senior NBC officials at the bank's Corporate branch along Azikiwe Street/Sokoine Drive were accused of involvement in making "ghost transactions" amounting to 900m/-.

    The dubious payment was linked to Ino Texan Investment Company, which maintains account number 011103033038 at the bank.

    "The 900m/- ghost payment at the Corporate branch embarrassed NBC executives because it occurred literally right under their noses," said another well-placed source. The NBC Corporate branch is on the ground floor of the bank's headquarters, with the bank's senior management staff occupying offices on the upper floors of the same building.

    At least two officials at the NBC Corporate branch were suspended from work and received warning letters as a result of the fraud.

    "You are being reinstated while investigations on an alleged disciplinary offence are continuing -- management is therefore CAUTIONING you so that you become more vigilant in the execution of your duties," read part of a letter sent by NBC Ltd to one of its senior employees who was suspended only to be re-instated after a few days in February.

    "Please take note that upon completion of the investigations, in case of being implicated in any misconduct, disciplinary action will be instituted against you," the letter concluded.
  2. Tiba

    Tiba JF-Expert Member

    Apr 13, 2010
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    I might be missing something here!!! Can we call this a corruption scandal or just a criminal/fraud case that to my understanding is supposed to be dealt with the Police and not PCCB? May be I am ignorant to the extent that I cannot distinguish between corruption act and fraud!!!

    Please help to let know.

  3. m

    mmakonde JF-Expert Member

    Apr 13, 2010
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    Tiba i agree with you!The involvement of PCCB to this kind of fraud is red herring.Perhaps they want to show they are working!
    They have failed to root out corruption.Chenge ,Mkapa are untouchables!
    The theft in the NBC is collusion within middle ranking managers.Where is internal audit function?

    Also BRELA may be involved too.You could find the said company was also dubious .In China they will hang you if youhave this kind of fraud.In Tanzania,these guys know that with kind of judiciary we have ,they will walk away.
  4. M

    Magezi JF-Expert Member

    Apr 13, 2010
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    PCCB officials are among the beneficiaries of corruption in Tanzania.
  5. Deshbhakt

    Deshbhakt Senior Member

    Apr 14, 2010
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    to my understanding, it was the PCCB investigators who initally discovered the theft-as written in the article.The preliminary audit had also shown theft.

    Maybe when it indeed proven, the police will move in unless NBC decide otherwise and to the extent of transferring the officials involved to other branches..