Tuesday, April 29, 2008


Revealed: Vithlani to

spill the beans on

radar deal


More heads expected to roll as radar agent seeks to avoid prosecution

THISDAY REPORTER
Dar es Salaam.


CONTROVERSIAL radar agent Shailesh Vithlani is said to have cut a deal with British investigators to avoid criminal prosecution by spilling the beans on senior Tanzanian government officials who received illegal kickbacks to approve the dubious 2002 transaction.

THISDAY can now reveal that the fugitive businessman, wanted for multiple charges of perjury and lying to an investigating officer in Tanzania, has now offered to cooperate with UK detectives in exchange for his freedom.

According to well-informed sources, Vithlani - who initially denied receiving an illegal $12m (approx. 15bn/-) commission from the radar manufacturer BAE Systems has notified investigators from Britain’s Serious Fraud Office (SFO) that he is now willing to admit his guilt, in part to avoid criminal prosecution.

’’It appears the SFO people have accepted Vithlani’s offer to cut a deal, and he has since been fully cooperating with the ongoing investigation,’’ the sources confirmed to THISDAY.

The agent of the 28 million pounds sterling (approx. 70bn/-) radar deal is believed to have used the illegal commission from BAE Systems to bribe a number of top Tanzanian politicians and senior officials in the third phase government of ex-president Benjamin Mkapa, and get them to approve the deal.

The sources say Vithlani, who grew up in Tanzania but holds a British passport, has agreed to break his silence on the deal in return for an amnesty from criminal prosecution and the possibility of serving a jail sentence.

It is understood that thanks to Vithlani’s cooperation, SFO investigators were recently able to discover the offshore bank accounts belonging to former attorney general and cabinet minister Andrew Chenge.

There are allegations that at least $1m of the funds traced to Chenge’s offshore bank accounts in Jersey, Britain originated from BAE Systems, the company that supplied the military radar system to the Tanzanian government through the controversial agent.

Although there is an international arrest warrant out for Vithlani, he is reported to be living quite comfortably in Switzerland while continuing to cooperate with the British investigators over the radar deal.

’’The investigators are keen to get more information from him on illegal conduct by BAE Systems in connection with the transaction including possible outright corruption,’’ the sources told THISDAY.

They added: ’’If Vithlani does go ahead and reveal all he knows about the radar transaction and all those who were involved in it, we could very well witness more high-profile casualties in government.’’

Chenge was recently forced to resign as infrastructure development minister after being implicated in the radar deal, which was concluded during his tenure as the country’s attorney general.

He was effectively the first ’casualty’ of the ongoing investigation.

However, it is understood that with Vithlani’s help, investigators are now expecting to expose the involvement in this particular corruption scandal of other prominent government officials from the Mkapa era.

According to THISDAY findings, the team of British and American lawyers hired by Chenge to defend him against the radar corruption allegations have already gone to some length to apportion blame on other government departments.

Maintaining that their client was not involved in the deal, the lawyers have hinted in writing that the then ministry for communications and transport and ministry for defence and national service were the chief promoters of the deal.

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