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Radar deal`s top 10
2009-02-08 11:28:27
By Staff Writer
2009-02-08 11:28:27
By Staff Writer
After nearly three years of investigation, the UK`s Serious Fraud Office has implicated at least 10 top officials in Tanzania and Britain in the trumped up radar deal that cost the country $40m, The Guardian on Sunday can reveal.
The SFO has evidence that the officials were involved in the key negotiation stages that led Tanzania to purchase the military radar at an inflated price.
The top ten include former Attorney General Andrew Chenge, Sailesh Pragji Vithlani, Tanil Kumar Chandulal Somaiya, and Dr Idriss Rashidi.
Other players from the UK are Michael Peter Rouse, Sir Richard Harry Evans, Michael John Turner, Julia Adgridge and two senior officials from the British Aero Space Engineering (BAE System), the arms dealer that manufactured the radar.
It is believed that there are still more names from the previous regime that were part of the team that pocketed $12m in kickbacks from the deal.
According to reliable sources inside the SFO, the kickbacks were paid to Tanzania`s top officials in advance to move the negotiation process along smoothly.
Chenge`s role
The UK investigators believe the former Minister for Infrastructure Chenge was just `a conduit` through which the radar billions were distributed to selected top government officials whose decisions were crucial to the deal.
The SFO established that Chenge received $1.5m (2.1bn/-) from the deal through a slush fund he set up in the UK island of Jersey.
According to a draft report written by the UK`s Serious Fraud Office 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 has reportedly already been sent to the Director of Public Prosecutions.
The SFO has 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.
But aside from the money Chenge pocketed himself, he also used the Franton account to dish out the money to others involved in the radar deal.
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.
Rashidi is currently the managing director of the troubled Tanzania Electric Supply Company Ltd (Tanesco).
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.
Hiding the facts
Details made available to The Guardian on Sunday show that Chenge, alarmed by the possibility of being detected, directed his financial advisors abroad not to use his Tanzania address for any correspondence concerning the offshore bank account.
``Instead Chenge asked his financial advisors to send all documentation to C/o 11 Sid Mouth Road, London this is the current address for JO Humbros used during their communication with Chenge,`` reads part of the SFO investigation report, compiled by lawyer Mathew Cowie.
The London address was the subject of a search operation conducted on March 26, last year.
Mr Fat from Tanzania
The SFO investigation established that, to avoid being caught, the facilitators of the radar deal gave Vithlani the codename `Mr Fat`, while any mention of bribing or corruption was replaced with the euphemism `commitments`.
``I had an extensive discussion with our friend and I have this morning had a meeting with the AG to go through outstanding contractual issues,`` reads part of the fax message from a Mr Simpkins confiscated by SFO investigators early last year.
``The fat man having, as I stipulated, now resolved all the issues, is keen to sign an addendum to his agreement and argues he has a lot of commitments to a lot of old and new players as the project has taken considerable period to effect.``
``In addition he has stated to achieve the above compromises, new promises have had to have been made,`` the fax reads.
Again in September 1997, Simpkins wrote a fax message to a BAE official using more code language. ``Also over the weekend our fat friend has been working to resolve the outstanding commercial issues,`` he wrote.
``This morning he informed me that all issues are now resolved as follows: They [the government] have accepted English Law with arbitration in London.``
Registered a front company in Panama
In what is believed to have been a tactic to obscure the deal`s corruption, Vithlani and his partners registered a front company in Panama called Envers Trading Co Ltd.
The company, according to SFO records, received $8m in kickbacks between 2000 and 2005.
The payments came from Red Diamond Trading Co Ltd a front company of BAE System until December 2005 when it was terminated at a settlement of $3.36m.
In 1999 BAE System, through Red Diamond, registered in the British Virgin Islands and entered into an agreement with Envers Trading Co.
The Panamanian company was identified as a consultant working in Tanzania, which acted for Siemens Plessey System (SPS) in 1992/93 when the government was considering purchasing the radar for $88m.
SPS was acquired by BAE System in 1995, according to available details.
UK investigators have established that Tanil Somaiya and Vithlani held a power of attorney over Envers for six years, until December 2006.
Somaiya had earlier told the SFO that he wasn`t involved directly in the radar deal, but that everything had been under the control of his partner, Vithlani.
SOURCE: Sunday Observer