Rumishaeli
JF-Expert Member
- Nov 1, 2010
- 227
- 72
Dodoma. The Public Accounts Committee (PAC) yesterday heard how some top government officials and MPs were paid billions of shillings suspected to have come from the Tegeta escrow account.
PAC was also told how senior government officials aided Pan African Power Solutions Tanzania Limited (PAP) in evading tax in its dubious acquisition of Independent Power Tanzania Limited (IPTL).
Those who appeared before PAC behind closed doors and amid tight security were Prevention and Combating of Corruption Bureau (PCCB) boss Edward Hoseah, Tanzania Revenue Authority (TRA) Commissioner General Rished Bade and acting Controller and Auditor General (CAG) Francis Mwakapalila.
PAC wanted to know from Dr Hoseah what the PCCB team gathered during its investigation into the multibillion-shilling escrow account scandal.
Among key questions was who benefited from the Sh207 billion escrow money paid to PAP, which claims to have bought 70 per cent of IPTL for a paltry Sh6 million.
During the investigation, PCCB traced where all the money paid from the escrow account went. The anti-corruption bureau traced the escrow money at both the local and international levels, and blocked some suspicious payments. Dr Hoseah and his team gathered credible evidence on all key officials, including some ministers, top government officials and MPs, who were paid part of the escrow billions.
According to reliable sources within PAC, the most jaw-dropping testimonies came from the anti-corruption bureau and the CAG.
"I'm not in a position to disclose more details, but these guys (PCCB and CAG) did a commendable job…we now have enough details and further evidence that this was dubious deal," a PAC member told The Citizen in Dodoma on condition of anonymity because he is not authorised to speak to the media.
While PCCB focused on the criminal side, the CAG detailed what the audit established and how the agency reached the conclusion that escrow money amounting to Sh306 billion actually belonged to Tanesco.
After hearing from the three top officials, PAC concluded that it had gathered enough details and would now proceed to compile its final report, which would first be handed over to the Speaker before being tabled in Parliament.
TRA has already initiated disciplinary proceedings against the Ilala Regional Tax Manager, Mr Paschal Kabunduguru, who signed and authorised the false documents presented by PAP lawyers as proof that the company did indeed acquire 70 per cent of IPTL in September, last year. What makes the transaction highly questionable is the fact that at the time of the purported sale of shares, IPTL had power plants located in Tegeta, Dar es Salaam, worth millions of dollars plus cash totalling $250 million-including $122 million sitting idle in an escrow account at the Bank of Tanzania (BoT).
A TRA letter with the reference TRA/DR/ILA/RE/175, dated November 15, 2013 sent to Mechmar Corporation shows that the Malaysian firm sold its 70 per cent stake in IPTL at Sh6 million ($3,750), according to the prevailing exchange rate by the tax agency on that day.
The letter, signed by Mr Kabunduguru and whose authenticity The Citizen has verified, show that tax amounting to Sh776,000 was then paid by the Malaysian firm into TRA's account at CRDB Bank, Water Front Branch, on December 6, 2013.
But at the time when the PAP-IPTL acquisition was being endorsed by TRA, PAP, in the previous two weeks, already received $122 million(Sh201 billion) from the escrow account at BoT.
Apart from action taken against the officer who approved the PAP-IPTL transaction, the TRA boss also gave details about how much tax evasion, which took place during the deal that has been fervently defended by Energy and Minerals minister Sospeter Muhongo and Permanent Secretary Eliakim Maswi.
Others who have defended the deal within government circles include Attorney General Frederick Werema and some lawmakers from the ruling CCM.
Contacted yesterday, PAC chairman Zitto Kabwe confirmed that the committee had grilled three top officials, but declined to give more details. He promised to brief journalists today (Thursday) about what transpired as well as what would follow.
Source: The Citizen
PAC was also told how senior government officials aided Pan African Power Solutions Tanzania Limited (PAP) in evading tax in its dubious acquisition of Independent Power Tanzania Limited (IPTL).
Those who appeared before PAC behind closed doors and amid tight security were Prevention and Combating of Corruption Bureau (PCCB) boss Edward Hoseah, Tanzania Revenue Authority (TRA) Commissioner General Rished Bade and acting Controller and Auditor General (CAG) Francis Mwakapalila.
PAC wanted to know from Dr Hoseah what the PCCB team gathered during its investigation into the multibillion-shilling escrow account scandal.
Among key questions was who benefited from the Sh207 billion escrow money paid to PAP, which claims to have bought 70 per cent of IPTL for a paltry Sh6 million.
During the investigation, PCCB traced where all the money paid from the escrow account went. The anti-corruption bureau traced the escrow money at both the local and international levels, and blocked some suspicious payments. Dr Hoseah and his team gathered credible evidence on all key officials, including some ministers, top government officials and MPs, who were paid part of the escrow billions.
According to reliable sources within PAC, the most jaw-dropping testimonies came from the anti-corruption bureau and the CAG.
"I'm not in a position to disclose more details, but these guys (PCCB and CAG) did a commendable job…we now have enough details and further evidence that this was dubious deal," a PAC member told The Citizen in Dodoma on condition of anonymity because he is not authorised to speak to the media.
While PCCB focused on the criminal side, the CAG detailed what the audit established and how the agency reached the conclusion that escrow money amounting to Sh306 billion actually belonged to Tanesco.
After hearing from the three top officials, PAC concluded that it had gathered enough details and would now proceed to compile its final report, which would first be handed over to the Speaker before being tabled in Parliament.
TRA has already initiated disciplinary proceedings against the Ilala Regional Tax Manager, Mr Paschal Kabunduguru, who signed and authorised the false documents presented by PAP lawyers as proof that the company did indeed acquire 70 per cent of IPTL in September, last year. What makes the transaction highly questionable is the fact that at the time of the purported sale of shares, IPTL had power plants located in Tegeta, Dar es Salaam, worth millions of dollars plus cash totalling $250 million-including $122 million sitting idle in an escrow account at the Bank of Tanzania (BoT).
A TRA letter with the reference TRA/DR/ILA/RE/175, dated November 15, 2013 sent to Mechmar Corporation shows that the Malaysian firm sold its 70 per cent stake in IPTL at Sh6 million ($3,750), according to the prevailing exchange rate by the tax agency on that day.
The letter, signed by Mr Kabunduguru and whose authenticity The Citizen has verified, show that tax amounting to Sh776,000 was then paid by the Malaysian firm into TRA's account at CRDB Bank, Water Front Branch, on December 6, 2013.
But at the time when the PAP-IPTL acquisition was being endorsed by TRA, PAP, in the previous two weeks, already received $122 million(Sh201 billion) from the escrow account at BoT.
Apart from action taken against the officer who approved the PAP-IPTL transaction, the TRA boss also gave details about how much tax evasion, which took place during the deal that has been fervently defended by Energy and Minerals minister Sospeter Muhongo and Permanent Secretary Eliakim Maswi.
Others who have defended the deal within government circles include Attorney General Frederick Werema and some lawmakers from the ruling CCM.
Contacted yesterday, PAC chairman Zitto Kabwe confirmed that the committee had grilled three top officials, but declined to give more details. He promised to brief journalists today (Thursday) about what transpired as well as what would follow.
Source: The Citizen
