Dar MPs tour UK to wrest BAEs $50m out of charities
The East African
3 July 2011
Tanzanian has sent a delegation to London to lobby against the decision by British Aerospace Defence Systems (BAE) to pay a £30 million ($50 million) settlement to charity and not into state coffers The delegation, which includes Foreign Affairs Minister Bernard Membe, four legislators and lawyers will argue that it is wrong to pay the money accrued from a corruption case involving BAE Systems to British charity organisations operating in the country. Already, BAE Systems has formed an advisory board on Tanzania which will be chaired by Lord Cairns and Philippa Foster Back, OBE, who will serve as deputy chair. Additional independent members will be appointed to the board, with the agreement of the chair and deputy chair.
Zito Kabwe, chairperson of the Public Corporations Accounts, told The EastAfrican from Dodoma last week that opposition parties are against the British governments decision to give the money to charity organisation operating in the country. They are also against the decision to pay the money to the government of Tanzania. Mr Kabwe, who is also Shadow Minister for Finance, said the money should be paid to parliament, which will then decide on how it should be used by a local non governmental organisation. According to Mr Kabwe, giving the money to the government is tantamount to condoning another corruption case. Opposition parties will table the issue this Monday (July 4) during the Ministry of Good Governance in the Presidents Office budget session. We will give the government the opposition parties stand on the issue, he said.
Already, the Tanzania delegation has met the top management of BAE Systems, British parliamentarians and senior government officials to voice their opposition. Others in the delegation who are still lobbying in London include Deputy Speaker Job Yustino Ndugai, Kongwa MP Mussa Hassan Zungu, Ilala MP (CCM) Angella Jasmine Kairuki and John Momose Cheyo, Bariadi East MP (United Democratic Party).
Mr Membe last week said the British governments refusal to pay the money to the government would amount to a humiliation of the republic. He said the government was determined to get the money, hinting they would consider more serious steps, including rejecting it if the UK insisted on bypassing them, as well as de-registering UK charities operating in the country. Tanzania may be poor, but it should refuse to accept payment from BAE Systems through charity organisations, he said, adding that accepting the conditionality would amount to admitting that the government was involved in the corrupt deal.
On June 17, BAE Systems Plc announced the formation of an advisory board on Tanzania. The company will be represented on the board by four senior executives: Philip Bramwell (group general counsel), Linda Hudson (president and CEO of BAE Systems), Charlotte Lambkin (group communications director) and Lawrence Prior (executive vice president of service sectors, BAE Systems), who will act as the executive liaison member.
Leonie Foster, communications manager, financial public relations of BAE Systems told
The East African from London last week that BAE has made sustained efforts to be recognised as a leader in responsible business conduct. Ms Foster said the formation of the board is part of this process and is in line with the settlement agreement with the Serious Fraud Office, approved by the court last December. As part of the settlement, BAE agreed to pay the sum of £29.5 million for the benefit of the people of Tanzania. The company is now holding the sum as a fund in a treasury account and will confirm with the fraud office that the payments made are consistent with the settlement agreement, she said.
Ms Foster added that BAE management met the Tanzania delegation in the UK, adding that once the board has been fully formed, further work will be undertaken to look at the best ways to distribute the funds to any identified organisation. Though we wont be commenting on every meeting the advisory board takes, we can confirm that the company recently met the Tanzanian MPs visiting the UK, she said.
Independent members of the Advisory Board will guide the Company on the optimum means of applying the $48m (£29.5m) for the benefit of Tanzanias, in accordance with all applicable company polices. In addition to disbursements from the fund, the company is willing to explore various opportunities to enhance its overall contribution. It is ready to utilise its advanced technological capabilities to maximise the effectiveness of the projects supported by the fund.
The East African: *- Business*|Dar MPs tour UK to wrest BAE