How Magufuli, Mkapa gave billions to an Asian mogul
2008-10-05 11:29:40
By The Guardian on Sunday Team
President Kikwete, addressing the Parliament in August, this year, hinted about the huge cost that taxpayers as well as the state can incur due to lack of good governance.
But before an ink dries, taxpayers are now forced to pay a Mwanza based tycoon a close to 2bn/- due to what High Court Judge described as `Out of either ignorance of the law or arrogance and flagrant disregard to the due process of the law.`
John Pombe Magufuli, a man former President Benjamin Mkapa once described as an exemplary model among his cabinet ministers, has made one Mwanza businessman a billionaire, following his controversial decision to demolish a petrol station valued at 490m/- at the time.
The Guardian on Sunday has established that Mansoor has already received a down payment amounting to 490m/- from the government`s coffer.
The payments were done recently by the treasurer in Dar es Salaam.
State counsels from the Attorney General`s Chamber in Mwanza have failed to appeal against the decision by the High Court to award the proprietor another 730m/- as loss suffered over six years, plus an interest of over 17 per cent per annum, after establishing that the evidence tabled by the minister is weak and baseless.
The state counsels don't object to the main ruling that the plot was acquired and developed legally, but they are against the amount awarded to the proprietor.
Mansoor earlier demanded about 18bn/- for the total loss he suffered during the projected period of his title deed, which has a 33-year lifespan.
The 2bn/- being paid to Mansoor is taxpayers` money, money that could have built 200 classrooms at 10m/- each, and an amount equal to that which President Jakaya Kikwete issued to two regions to fight poverty in 2006/7.
From owning a demolished fuel station worth only 490m/- to reaping a bounty of 2bn/-, Mansoor is one of the few lucky guys who have taken advantage of the lack of good governance to screw the Government - and taxpayers.
What transpired?
It all started in December 2000, in what six months later became a huge scandal involving Minister Magufuli, the Mwanza City Council and Shanifu Mansoor, the Asian businessman who had bought the petrol station, which Magufuli said was built illegally within an area reserved for road construction.
Magufuli had argued that Mansoor had been granted the station corruptly and was denying citizens of valuable land, but what made Magufuli a hero at the time has cost taxpayers dearly today, The Guardian on Sunday has learnt.
Reliable sources disclosed to The Guardian on Sunday this week that Magufuli was fully backed by the former head of state, and Mkapa`s support gave Magufuli the validation to demolish the disputed fuel station at Plot No. 78 Block A, Kirumba Street.
Magufuli, who was then the Minister for Works, stood firmly before all Members of Parliament from Mwanza region, and declared that the plot and the building permits had been acquired illegally.
He added that since the Mwanza City Council was clouded by corruption, the possibility that the proprietor had been granted the plot through crooked means couldn�t be ruled out.
The Mwanza petrol station became a national scandal, making the front pages of all the major newspapers in the country.
After weeks of back-and-forth, Magufuli finally ordered the petrol station demolished on June 21, 2001, despite being warned that the Mwanza City Council had issued the building permits legally.
Magufuli insisted that no compensation would be paid to the proprietor because, based on the available evidence, the plot was acquired imprudently.
In this battle, Magufuli was strongly supported by Mkapa and the then-Minister for Local Government, Hassan Ngwilizi.
Shanifu Mansoor, the owner of the petrol station, decided to take legal action to get what compensation for the losses he said he suffered following the demolition.
He collected evidence with the assistance of some top officials from the previous regime, and after obtaining proof that the plot was legally allocated, Mansoor filed a civil suit on February 5, 2002, at the Mwanza High Court.
Although the case took five years, the High Court in Mwanza ruled last year that the minister had acted unlawfully in demolishing the petrol station, and ordered the Government to pay Mansoor compensation amounting to nearly Sh2 billion.
In his ruling, Judge Lawrence Mchome ruled that the plaintiff obtained and owns the disputed plot lawfully, and ordered the first, second and third defendants to pay the plaintiff�s costs in the suit.
But, some government officials maintain that Mansoor can�t be blamed for fighting against a decision that never should have been made in the first place.
In his ruling Judge Mchome wrote, ``Out of either ignorance of the law or arrogance and flagrant disregard to the due process of the law, or both, the advice to invoke the President`s powers to revoke the right of occupancy and acquire the public land for public purpose was disregarded and the due process of the law abused.``
In what seemed a response to the defense issued by Magufuli, Judge Mchome added, ``Laws were made by our Parliament to be obeyed.
It is ridiculous if one disobeys or breaks the law and pretends to do so for public interests laws were made for public interest and both public interest and good governance require that they be obeyed, not vice versa.``
Ignored the warning
According to investigations conducted by The Guardian on Sunday, despite being warned by a team of experts from Mwanza City Council and his own ministry that the plot was legally acquired, Magufuli soldiered on with his demolition plan.
Testifying before the High Court, engineer Marwa Rubirya, who is currently an assistant director in the Ministry of Infrastructure, told the court, ``His office was satisfied that the construction of the fuel station was lawful.``
Mwanza city, in its defense, clearly told Minister Magufuli that the plot in dispute was legally acquired and developed, distancing itself from any compensation due to the proprietor of the demolished fuel station.
Reports from Mwanza city shows that, Magufuli was officially informed that Plot No. 78 Block A was first surveyed in 1963 and marked for residential and commercial purposes, and that the current city planning shows that there`s no need for a new road to be constructed through the petrol station.
The Mwanza city director at the time, Paul Baruti, wrote a letter in March 2001 to the Ministry of Local Government, and copied to Magufuli, stating that city plans indicated the plot was legally established under the town drawings No.14/165/781/21, and that there were no records to indicate that these drawings had been legally revoked by the concerned authorities.
Dr Charles Tizeba, who was the Mwanza city engineer during the scandal, told The Guardian on Sunday this week, ``I personally informed the minister in writing about the legality of the disputed plot, but he ignored my advice and chose to proceed with what has today cost taxpayers billions of shillings.``
A reliable source who worked at the State House during the third phase regime told The Guardian on Sunday this week, ``He did what he did because he was fully backed by Mkapa, who had promised to build Mwanza roads before he left office due to his strong trust to Magufuli, he didn`t bother with what impact the government would endure.``
Next week: Why the government lost
SOURCE: Sunday Observer