THISDAY REPORTER
Dar es Salaam
FUGITIVE businessman Shailesh Vithlani is currently lobbying senior Government officials in Tanzania to land more contracts in the country despite the existence of an arrest warrant issued against him by a Dar es Salaam court, THISDAY can reveal today.
Well-placed sources have described Vithlani as being intensely hungry for more Government contracts particularly related to the Ministry of Defence and National Service.
The businessman, who is wanted by local authorities in connection with the 2002 military radar scandal, is said to have been aggressively trying to win new contracts with the Tanzanian Government from his self-imposed exile abroad.
He is understood to have even financed a trip by a delegation of senior Government officials abroad to try to convince them to award him more contracts.
Vithlani is still very much in business...He is actively trying to secure new Government contracts through various go-between companies, said one well-placed source in Government.
In fact, you wont see Vithlanis name appear in any of these companies. But he is using them to land new contracts in Tanzania through his large network of influence within Government circles, the source added.
He is said to be particularly interested in defence contracts.
Apart from the military radar purchase, Vithlani has also been linked to a string of other major procurement contracts mostly with the third phase Government of ex-president Benjamin Mkapa.
They include the purchase of helicopters and trucks for the Tanzania Peoples Defence Forces (TPDF), speed boats, the Gulfstream presidential jet and other deals.
The radar man (Vithlani) still maintains good contacts in both Government and military circles who are keeping him constantly updated on upcoming potential contracts, said our Government source.
Vithlani has reportedly been residing in Switzerland since he skipped the country after the Kisutu Resident Magistrates Court issued an international warrant for his arrest.
The arrest warrant was issued on August 30, 2007 in connection with criminal case number 1474 of 2007 at the Kisutu court.
In the case, the fugitive businessman was charged with several counts of perjury and lying to an investigating officer in connection with the 56bn/- radar scandal.
Vithlani, who grew up in Mwanza Region, is known to have at one time travelled with a British passport number C387266A, but is listed as a Tanzanian citizen in a Wanted Person poster on the website of the International Criminal Police Organization (Interpol).
During questioning by investigators from both the UKs Serious Fraud Office (SFO) and the local Prevention and Combating of Corruption Bureau (PCCB), he is alleged to have lied under oath about his links to the military radar corruption deal.
So far, the PCCB is yet to file its own corruption charges against several high-profile individuals implicated in the radar scandal, apart from the minor charges of perjury and lying to an investigating officer already filed against Vithlani.
The UKs biggest arms supplier BAE Systems, which manufactured the military radar system sold to Tanzania, is understood to have secretly paid a $12m (approx. 15.5bn/-) commission into a Swiss account controlled by Vithlani.
He has admitted that the sum was covertly moved to a Swiss account by BAE Systems, which is under investigation by the SFO.
Sources close to the investigation say Vithlani has been fully cooperating with the SFO, and could turn out to be a key prosecution witness should a case against BAE Systems go before a UK court.
Vithlani has been singing like a canary. He has basically spilled all the beans and provided a lot of information to SFO investigators about the military radar transaction in Tanzania, said another informed source.
British investigators have already identified three other prominent individuals in Tanzania in connection with their ongoing investigation into the radar scandal - former Bank of Tanzania governor Dr Idris Rashidi, ex-attorney general Andrew Chenge, and local businessman Tanil Somaiya.
Rashidi, who is the current managing director of the state-run Tanzania Electric Supply Company Limited (TANESCO), served as BoT governor between 1993 and 1998.
Along with Chenge, he has been named as one of the key officials of the Mkapa Government who facilitated the apparently overpriced radar purchase which was finalized in 2002.
Chenge was forced to resign as infrastructure minister in the fourth phase Government of President Jakaya Kikwete in April last year, after being openly implicated by SFO investigators in the military radar scandal.
Somaiya and Chenge have both denied criminal wrongdoing in the matter, while Rashidi has declined to comment at all.
Officials close to the SFO investigation say Chenge and Rashidi allegedly received suspicious payments believed to have originated from BAE Systems, while Somaiya and Vithlani both represented a company that acted as the local agent for the British arms manufacturer in the deal.