Four BoT heavyweights joined in EPA case

Daily News; Saturday,November 08, 2008

Four Bank of Tanzania (BoT) officials, who allegedly authorised External Payments Arrears (EPA) payments, have been charged with occasioning loss of about 2.5bn/- to the government of Tanzania. They were arraigned at the Kisutu Resident Magistrate’s Court in Dar es Salaam before two separate magistrates in different court appearances and denied the charges.

They were remanded until November 20 and 21, for determination of bail. The four are Esther Komu, the Acting Director, Debt Department, Imani Mwakosya, Head of Bilateral and Commercial Debt Division, and two acting secretaries to the bank, Bosco Ndimbo Kimola and Sophia Joseph Lakila. In what seemed like they could not believe what was going on, Komu and Lakila were seen dropping tears before and after they were ordered to enter the dock to answer the charges alongside their co-bank officials in the fully-packed courtroom.

State Attorneys Thadeo Mwenerupazi, Daud Momburu and Edgar Luoga and Assistant Commissioner of Police Charles Kenyela, for the prosecution, told the court that investigations into the cases have been completed. Advocates Majura Magafu, Joseph Thadayo, Julius Ndazi, Capt. (rtd) John Kirigiti and Masaka Thomas are defending the bank officials, who were joined in cases facing businessmen Farijala Hussein and Rajab Maranda.

The court appearance of the four senior BoT officials brings the number of accused persons facing criminal charges linked to EPA scandal to 17. On Wednesday, 10 people were charged with several counts involving, among others, theft of over 31bn/-, while on Thursday, three more were brought on board, charged with stealing over 10bn/-. The prosecution alleged before Resident Magistrate Waliarwande Lema that between March 22 and 24, 2005, with intent to defraud, Hussein and Maranda forged certificate of business registration and its register extract.

They allegedly purported to show that the said documents were signed and issued by the registrar of companies to them as proprietors and partners of Money Planners and Consultant. On November 29, 2005, the duo uttered the document to the Commercial Bank of Africa, showing they were registered company’s partners. On September 8, 2005, the accused allegedly forged a deed of assignment between P. Grancel and Company Limited of German and Money Planners of Tanzania, showing that one Jonas Bach and Fundi Kitunga were directors of the companies, respectively.

The prosecution claimed that on November 2, 2005, the accused uttered the document to the BoT and later on December 7, 2005, they stole 2,266,049,041/25. The accused were also charged with alternative count of obtaining credit of the said amount by false pretences. On the same day, Komu, Lakila and Mwakosya, being employees of the central bank, by negligence or reason of their failure to discharge their duties in a reasonable manner, allegedly caused the government to suffer a pecuniary loss of the said amount.

The prosecution alleged before Resident Magistrate Resident Magistrate Hezron Mwankenja that Maranda forged a deed of settlement between Rashhas Tanzania Limited of Tanzania and General Market Limited of India on July 12, 2004. Maranda allegedly showed that the Indian Company had credited 207,284,391/44 to the Tanzanian firm. On August 15, 2005, the accused uttered the document to the BoT and three days later stole the said amount, property of the bank.

The prosecution alleged that on August 18, 2005, by negligence or reason of their failure to discharge their duties in reasonable manner, Mwakosya, Komu and Kimola allegedly caused the government to suffer a pecuniary loss of the said amount. Meanwhile, only two out of the 17 accused have managed to meet bail conditions. They are Davis Kamungu and Godfrey Mosha, who are charged with conspiracy, forgery, making false statements, obtaining registration by false pretences and stealing over 2bn/-.

Magistrate Lema released the duo on bail after managing to surrender title deeds on property worth 50m/- and their passports. The rest are still in remanded custody after failing to meet bail conditions. They include tycoon Jayantkumar Chandubhai Patel alias Jeetu Patel, Devendra Vinodbhai Patel, Amit Nandy, Ketan Chohan Bahati Mahenge, Manase Mwakale, and the lone woman, Eddah Mwakale.