Bank of Tanzania, Twin Towers in Dar es Salaam
_______________________________
Governor of
Bank of Tanzania
Don Daudi Balali
Capo Di Tutti Capi
Of Balali Family
A demure and insignificant former official of the IMF, his close relationship with Anna Muganda brought him back to Tanzania as an Advisor to the State House in 1995. He then went on to become Governor of Bank of Tanzania and discovered that he could pillage resources without fear.
He has been involved in every major scandal and has now holds more wealth than half the Government’s recurrent budget per annum. He has various companies and houses in South Africa, Tanzania, Dubai, Mauritius, Monaco, Switzerland and Washington. Not satisfied with the already high salary of USD 12000 per month from the Bank of Tanzania, Balali under heavy influence from his wife, Anna Muganda, went on to rob Tanzania. Anna has close ties with powers that be in the Third Phase Government, and close family ties with Malegesi. Balali became a hard core white collar criminal using his office to enrich himself and his friends, the other Capos Criminals. The projects and the amounts of funds stolen by him exceed UD 800 Million for transactions valued at USD 3 Billion over the last 7 years.
Bank of Tanzania
The Bank of Tanzania Project is costing Tanzania USD 8625 per square meter when the going construction cost in Tanzania is USD 700 per square meter. In New York and Tokyo, per square meter cost for furnished building does not exceed USD 2000 including land. Even considering the cost of USD 2000 per square meter, the 40000 sq. meters BOT towers should cost USD 80 Million. This would be gold handles and high security etc included.
The Tanzania Engineers Board, Architects Board, and Contractors Boards have made statements opposing the manner and cost of the BOT Towers. Balali has managed to get approval and spend USD 345 million, which means the estimated cost per square meter is USD 8625, over four times New York prices. Despite corruption allegations in the project early on in 1998 with Skanska (a Swedish company) disqualified for paying the Governor USD 5 million bribe, the Governor went to give the project to Group 5, a subsidiary of Skanska in South Africa. Estimated loss to Tanzania is USD 265 million.
The Meremeta Gold Company
The Governor is the custodian of this ill conceived mining project. He guaranteed this project from the Government for USD 100 million in 1999. Anna Muganda was a major shareholder and partner who brought in Time Mining to manage and operate the Meremeta Mines on behalf of the Government of Tanzania. She went on to become the wife of Balali in 2004.
The Meremeta Mines was a classic example of Daudi Balali giving Guarantees to companies in which he had an interest, the company thereafter filed bankruptcy and the Bank of Tanzania paid the funds against the Guarantee. Noting the strategic importance of having its own Gold Mine, Bank of Tanzania invested heavily into this mine while the South African partners raised the money and sold their shares after utilizing the funds in the first year of operation. The Governor, after supporting the loss making operation for 7 years, sold the mining rights to Rand Gold, making the Government mine unsustainable. The loss to Government of Tanzania is USD 132 million paid to the lenders against the Guarantee from BOT with interest and penalties. The Governor made payments in October 2005 before the end of Third Phase Government. He sold the mining rights to RAND Gold for below market prices causing a further loss of USD 100 million. Total loss to Government of USD 232 million
Foreign Debt Service Account Bank of Tanzania
The Governor had his associates preparing false and fraudulent deeds of assignment for funds owed to Japanese and other international companies.
While the international companies themselves have no knowledge of the payments, nor have they assigned the Deeds to these Tanzanian companies, the Bank of Tanzania approved over USD 150 million during two years to be paid to local companies belonging to close and personal associates of Daudi Balali. While Don Andy used his influence to convince the Governor to use Jeetu Patel and his partners, Don Daudi had his own people in mind. He therefore decided to spread the risk and use the Jonson Lukaza family to present part of the fake deeds of assignments.
To avoid detection, Balali asked the claims to be submitted for between 2-4 billion and paid the money over 5 months to 28 companies in 2005 alone. The Tanzania currency loss is partly attributed to this scandal as the Capos get paid in TAS and then rush to exchange this into USD cash to carry it out of the country. Since there is only USD 15 Million currency available as cash in the Tanzanian market at any given time, the huge demand by the Capos for over USD 150 Million has forced the shilling to fall over 25% in one year. The Governor even convinced the Government to release more USD in the market in order to shore up the shilling while he know very well there is no sound economic reason that releasing USD currency can shore up the shilling. What he was really doing was releasing USD cash into the market that the Capos and himself needed to buy.
Companies involved in BOT scandal belong to Capo Crimines Jayantibhai Patel, Vimal Mehta, Bharat Patel, Mitul Patel, Jonson Lukaza, Samson Mapunda, Aggrey Marealle, and Malegesi. The names are as follows:
Noble Azania Investments Ltd.
Noble Autoparts
Bank M Ltd
Bora Apartments
Changanyikeni Residential Complex
J.I International
Executive Solutions Ltd
Kernel Ltd.
Knight Frank Ltd (Real Estate company used by Lukaza, Jeetu and Malegesi to hide the stolen funds in properties)
Gimoafrica Properties Ltd. (Real Estate company used as above)
V& B Associates Ltd. B.V.Holdings
Navy Cut Tobacco Ltd. New Matallan Mining Serengeti Breweries Ltd. &
12 other companies
The Alex Stewarts Auditor Saga
Don Balali hired this firm to audit the gold exports from Tanzania
by mining companies. This company was based in Washington and before Tanzania, has never audited a single mining company. Coincidentally, most of the Alex Stewarts expatriate staff were the same individuals that were working for Time Mining, a company that operated and managed Meremeta Gold Company and then left with USD 100 million of Tanzania’s funds.
The shareholders and beneficiaries of Time Mining are Anna Muganda and other close associates of Don Balali. This type of audit agreement was the first in the history of Africa, with a company that has never done this type of auditing, and was paid a commission of 1.9 % from the total gold royalty the Government of Tanzania collected of 3.9%. This amounted to USD 1.5 Million per month, USD 18 Million per year and USD 72 million over the period of three years this company has had a contract with BOT. Sources within the company noted that the operating cost per month including the audit work done by 3 expatriates and 3 local staff in total does not exceed USD 50,000. Therefore, Don Balali was paying the auditing company closely associated with his wife 30 times its operating cost per month.
Even with a profit margin of 100%, this company should never have been paid more than USD 100,000 per month by BOT. Taking the USD 100,000 per month figure as an acceptable rate which may have been charged by any larger auditing firm, the loss to Tanzania would be USD 17 million per year and USD 68 million over the 4 year period. Information recently obtained note that the Governor intends to extend the contract for a period of 3 years and again this June 2007. The Alex Stewarts CEO and Don Andy have been have been doing the rounds, visiting several Ministers to extend this contract with BOT. Alex Stewarts now boasts of doing gold auditing in several countries in Africa.
Sent to Chama Cha Watanzania Oslo by Omari Guy Agallo Chichi: omyguyagallochichi@yahoo.co.uk
Forwarded to Tanzanet by:
From: Zainab Mwatawala
To: list@tanzanet.org; list@tanzanet-online.org
Time: Tuesday, 3 July, 2007 9:08:34 AM
Forwarded to Zainab Mwatawala by:
From: fadhili kilewo
To: Dilliwa Ebahat Shemahonge
Sent: Monday, 25 June, 2007 1:52:23 PM
Subject: Fw: GAVANA NI MWIZI ASHITAKIWE
( SKENDO YA TAIFA )
Source: Tanzanet mailinglist: list@tanzanet.org
Tanzania mailinglist: http://www.tanzanet.org
The chain goes on and on.....
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