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Dr Edward Hosea corners SFO

Discussion in 'Habari na Hoja mchanganyiko' started by BAK, Feb 15, 2010.

  1. BAK

    BAK JF-Expert Member

    Feb 15, 2010
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    Dr Edward Hosea corners SFO

    By Staff writer

    14th February 2010

    Dr Edward Hosea

    The Prevention and Combating of Corruption Bureau (PCCB) has written official letter to the UK's Serious Fraud Office (SFO) demanding details on how the $40million dubious radar deal case was sealed between the Britons' investigators and British Aerospace Engineering System.

    According to inside sources within the PCCB, the official letter was written by the Bureau's Czar Dr Edward Hosea on Wednesday this week in the wake of BAE System's agreement to pay back $60million as penalty for all wrongdoings that clouded the radar deal between the company and Tanzanian government.

    Apart from demanding details on how the deal was concluded, PCCB also wants to know the fate of Britons it accuses of receiving millions of dollars in bribes during the radar deal.

    The Britons are Michael Peter Rouse, Sir Richard Harry Evans, Michael John Turner, Julia Adgridge and two senior officials from BAE System.

    It is believed that together with their local counterparts in Tanzania, the suspects pocketed more than $12million as bribes in order to facilitate the deal that milked the country an extra $28million.

    At least four Tanzanian suspects were being investigated by both the SFO and the PCCB. They include former Attorney General Andrew Chenge, former Central Bank governor Idris Rashidi, Sailesh Vithlani and his close partner Tanil Somaiya.
    Dr Hosea confirmed this week that he has written official letter to SFO regarding the matter but declined to give more details.

    "For your information we have already written official letter to SFO demanding key details before we proceed with the matter in our own ways and according to our laws." He told The Guardian on Sunday.

    He insisted that his Bureau was still interested in ensuring that all those implicated in the scam are arrested and prosecuted before the court of law regardless of the agreement reached between SFO and BAE System.

    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 last week, 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 Sh5000 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 unnecessarily and overpriced.

    Chenge was forced to resign in 2008 after investigators discovered more than £500,000 in a Jersey bank account he controlled but he strongly denied the money had come from BAE. Early in 2008, the UK investigators said that Chenge had received $1.5m (Sh2.1bn) in kickbacks from the deal through a slush fund he set up in the UK island of Jersey.

    According to a draft report written by the SFO and seen by The Guardian on Sunday, Chenge received payments through six credit transfers between June 19, 1997, and April 17, 1998, while he was serving as Attorney General.

    The billions were paid to account No.59662999 owned by Franton Investment Limited through Bank Code No 204505 of Barclays Bank Plc, according to the draft report, a final version of which was sent to the Director of Public Prosecutions.

    The SFO also established that Chenge owns Franton Investment, a registered company that appears to have been established primarily to enable the transfer of the dirty money. According to information provided by the Jersey Authority, the $1.5m was transferred from a Frankfurt branch of Barclays Bank to Chenge's account at a Jersey branch.

    For example, the SFO established that on September 20, 1999, Chenge personally authorised the transfer of $1.2m from the Franton account to Royal Bank of Scotland International in Jersey. In May 1998, Chenge also authorised the transfer of $600,000 to an account owned and operated by Langley Investments Ltd.
    The account was officially operated by former Central Bank Governor Dr Idrissa Rashidi.

    The SFO report concluded that both Rashidi and Chenge were key figures in the corrupt radar deal, but they were acting with the full support of top officials from the third phase regime.

  2. Injinia

    Injinia JF-Expert Member

    Feb 15, 2010
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    Delaying tactics au? Yaani you are the boss of an anti-corruption office of the country, you don't do your homework right halafu unataka kula simbi (symbiosis) kwa watu wanaofanya kazi zao? In what way is the SFO obligated to report to PCCB on their findings/ how the deal was conducted?

    Watu wengine bwana!
  3. Buchanan

    Buchanan JF Diamond Member

    Feb 15, 2010
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    Sio symbiosis, ni matakwa ya kisheria kubadilishana na kusaidiana taarifa za uhalifu! Soma The Mutual Assistance in Criminal Matters Act, Cap. 254 (RE 2002).
  4. B

    Bulesi JF-Expert Member

    Feb 15, 2010
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    PCCB wanapoteza wakati kuwauliza SFO watu wao wamepewa adhabu gani kwani wao wamehukumiwa kutokana na sheri za kwao. Sisi hapa kuna watu wetu waliogundulika kuwa walipata mshiko wa RADAR sasa mahali pa kuanzia ni kwakuwauliza wakina Chenge na Rashid juu ya uhalali wao kuwa na off-shore accounts na kama walikuwa wameandika taarifa hizo kwenye declaration zao za uongozi!! Kutoka hapo then wangeendelea na criminal investigations!Kumbukeni tu kuwa mmoja wa watuhumiwa [ Somaia] aliwapa umoja wa vijana ccm fedha za kufanyia mkutano wao mkuu na fedha hizo zilipokelewa na Jakaya!!
  5. BAK

    BAK JF-Expert Member

    Feb 15, 2010
    Joined: Feb 11, 2007
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    Dar to probe radar scandal despite $46m payout

    Andrew Chenge resigned as Minister for Infrastructure Development after SFO implicated him in the scandal. Photo/LEONARD MAGOMBA

    Posted Monday, February 15 2010 at 00:00

    Tanzania is at a crossroads.

    It is wondering whether to investigate an international corruption case involving British arms manufacturers BAE systems.

    This is after the company admitted it was guilty of dubious financial dealings in its sale of a $46 million Watchman Air Traffic Control System to Tanzania.

    BAE Systems admitted there were malpractices in the process, and offered to refund the Government of Tanzania $46 million.

    Chairman Dick Olver said in an interview: "Under the agreement with the Serious Fraud Office, the company will plead guilty to one charge of breach of duty to keep accounting records in relation to payments made to a former marketing adviser in Tanzania.

    "The company will pay an agreed penalty of £30m ($46m), comprising a fine to be determined by the court, and the balance as a charitable payment for the benefit of Tanzania."

    In Tanzania, senior officials of the Prevention and Combating of Corruption Bureau (PCCB) and the Ministry of Justice were tight-lipped on whether to continue with investigations.

    Last week, UK's Serious Fraud Office (SFO) allowed BAE to plead guilty to the offence of selling to Tanzania a £28 million air traffic control system, yet requesting $46 million in payment.

    The SFO then dropped its charges against those involved in the scandal, who included Tanzanian officials Andrew Chenge (the then Attorney General), tycoon Tanil K.C Somaiya of Shivacom and Shailesh P. Vithilan.

    In court, they were accused number six, eight and nine, respectively.

    Accused number seven is not mentioned on the charge sheet.

    Mr Chenge was later appointed a Minister for Infrastructure Development in the Kikwete administration.

    He resigned after SFO implicated him in the scandal, with claims that he received $1.5 million from BAE.

    The World Bank and the International Civil Aviation Organisation - before and after the purchase of the system - said it was unnecessarily overpriced.

    The PCCB investigation was, however, largely dependent on SFO findings, meaning the country will have to conduct its own probe.

    This viewpoint is supported by the Deputy Leader of the official opposition in the National Assembly, Dr Wilbrod Slaa.

    The SFO has been investigating the $39.5m (Tsh53 billion) contract signed in 1999 to supply a radar system to Tanzania.

    The probe relates to payments of $12 million to Shailesh Vithlani, BAE's former marketing adviser in Dar es Salaam.

    A six-year investigation by SFO identified key roles played in the radar deal by Mr Chenge and Dr Idris Rashidi, the then Bank of Tanzania governor.

    PCCB public relations officer Doreen Kapwani told The EastAfrican that they were yet to issue a statement on the matter.

    "There is a bureau event soon, you may get your answers then; after all, the director (Dr Edward Hosea) is at a meeting," she said.

    The Minister for Justice, Mathias Chikawe, declined to comment on the matter.

    By pleading guilty under section 221 of the Companies Act, 1985, BAE will not face an embarrassing court case.
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