In support of my submission, I particularly (but not exclusively) refer the Committee to our case in Tanzania known as the Silverdale Farm case. It is a case that should cause deep concern to members of the Committee and the British government. It illustrates the flaws in Tanzanias approach to foreign investors, failings in governance and the rule of law and Tanzanias refusal to respond properly to official representations made on our behalf. I also refer the Committee to the attached reference to the Silverdale Farm case, by Sir Edward Clay in evidence to the Lords Economic Affairs Committee on 5th July.
In 2004, my husband Stewart Middleton and I invested in Tanzania. Between us, we have more than seventy years experience of living, working, and farming in Africa. We purchased a 45-year lease to Silverdale & Mbono farms, situated in the Hai District of the Kilimanjaro Region.
My husband strategically planned the rehabilitation of the farms to optimize their profitability and sustainability with a comprehensive agribusiness plan. At the heart of his plan was his desire to rehabilitate the property into a sustainable and profitable operation, to train and develop a skilled workforce that would persist long after his stewardship of the land. His many years of experience in developing and managing farming projects within complex social, legal, and regulatory environments in developing economies in Africa and elsewhere made Stewart the ideal candidate to revive the property.
Within the first six months, Stewarts farming skills, significant financial investment and the creation and management of a dedicated staff, transformed the farms from derelict and commercially-unproductive land into a productive farming operation employing over 150 Tanzanians from the local community; growing and exporting more than eight tons of fine green beans to Europe weekly during harvest; and the first farms in Tanzania to earn EUREPGAP accreditation, a valuable farm classification that would allow us to tap into the profitable European Union market.
We purchased the lease to the farms from Benjamin Mengi, brother to Reginald Mengi, an influential media personality in the national and pan-African business community. The purchase of the lease complied fully with the laws of Tanzania and no court has set the sale aside.
Mr. Reginald Mengi sits on boards of international committees and has acted as the Chairman of Tanzanias National Board of Business Accountants and Auditors, Chairman of Tanzanias Chapter of the International Chamber of Commerce, and as Chairman of the Tanzanian Chapter of the Commonwealth Press Union. He is also a member of the Board of Management of the Commonwealth Business Council and sat on the Blair Commission for Africa.
To fully appreciate the background, it is important to understand Benjamin Mengis powerful influence in local politics, business, and community affairs throughout the Kilimanjaro region. One need only look at the recent attendees of the funeral of Benjamin Mengis wife, Millie Mengi, in 2010. The hundreds of funeral attendees included a host of political and religious dignitaries, including President Jakaya Kikwete, Hai District Commissioner Dr. Norman Sigali, CCM Kilimanjaro Regional Chairman Vicky Nsilo Swai, Head of the Evangelical Lutheran Church in Tanzania Bishop Martin Shao, Bishop Frederik Shoo, Arusha Diocese Bishop Thomas Laizer, and a number of other government leaders and representatives from various political parties. At the funeral, Reginald Mengi specifically thanked President Kikwete for being "a true friend."
One year after the assignment of our lease, Benjamin Mengi demanded it back, stating he had not been paid in full. In fact, he had signed a receipt for the monies. When we refused to return the lease, he stated that he would drive us out of Tanzania by any means, "cut to pieces in a coffin, if necessary" a statement he made in front of the Regional Police Commander for the area.
A four-year campaign of violence and harassment was then unleashed against us, facilitated by the police and judiciary and involving a number of state institutions. This included:
·The refusal of the authorities to register our lease or recognise our Deed of Assignment;
·The destruction of commercial contracts;
·Violence to, and the imprisonment of, our key operational staff; and
·The repeated arrest, and ultimate imprisonment, of my husband on trumped-up charges.
A most destructive dynamic in this campaign was Mr. Mengis use of the courts and judiciary to engage us in years of costly and vexatious litigation within a corrupt legal system, which crippled us financially and emotionally.
Former UK government ministers, Lord Malloch Brown and Margaret Becket, together with high profile business leaders and the wife of former UK Prime Minister Tony Blair, Cherie Blair, have all raised this case with President Kikwete. On each occasion, President Kikwete has given his assurances that the rule of law would be applied to the case. After five years of effort by the Foreign and Commonwealth Office and successive British High Commissioners to Tanzania, in June 2009 the Tanzanian government stated that we forged the lease to our farm, did not pay for the assignment of it, were not bona fide investors in Tanzania and had fled the country due to a court judgment against us.
The person who issued that particular statement was former Tanzanian High Commissioner to the UK, now Tanzanias Ambassador to the United States, Ms. Mwaindi Majaar. It is defamatory.
The fundamental issues our case illuminates are corruption and abuse of law. A simple choice faces the Tanzanian government: to support the rule of law and protect the lawful interests of bona fide investors, or to facilitate criminal behaviour, as in our case.
Albeit on a small scale, we had the opportunity to provide truly sustainable development in Tanzania and to improve the lives of the poor. We fled the country in 2008 as a result of threats to our lives and the presence of armed bandits on our farm with the loss of our entire investment. Benjamin Mengi then invaded the farms, broke into our house, arrested our remaining staff and stole what remained of our property. The lease to the farms is now being offered up to another investor and we are being treated as if we never existed in Tanzania.
Our treatment is not an isolated phenomenon. Harassment and intimidation, including physical force have become more common in Tanzania. The authorities failure to protect legitimate rights to property and personal security encourage the politics of envy and a growth of lawlessness.
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Thothi:
Financial Crimes and Development (9th August 2011)