Tanzanian Association Oslo

Bank of Tanzania scandal:

Govt may freeze assets

Minister says those involved can run but they can’t hide

THISDAY REPORTER
Dar es Salaam

THE government is considering the freezing of assets belonging to individuals implicated in the looting of over 133bn/- from the Bank of Tanzania (BoT)’s external payment arrears account, it has been revealed.

Well-placed sources close to the ongoing investigation into who exactly was involved in the EPA account embezzlement scandal have confirmed to THISDAY that an assets freeze is now on the cards.

The residence of another businessman, Johnson Lukaza, who is linked to KERNEL Limited, which is on a separate list of nine companies found to have been paid over 42bn/- by the central bank without relevant supporting documents. Both properties are located in the posh Msasani suburb of Dar es Salaam.

It is understood that some beneficiaries of the billions of shillings paid out from the account in illegal circumstances used various local banks and bureaux de change to effectively launder the money.

Some are also believed to have invested heavily in real estate in posh neighbourhoods in Dar es Salaam, Arusha and elsewhere.

’’We have reason to believe that much of the money taken from the EPA account was used to buy expensive properties in high-class areas such as Masaki, Oysterbay and Mikocheni in Dar es Salaam,’’ said one source.

Other beneficiaries are known to have splashed the money on fancy cars such as luxury, new model Range Rovers which were flown in to Dar es Salaam from the UK aboard a special British Airways flight, sources say.

Investigations by THISDAY have established that one prominent business tycoon in the country, Jayantkumar Chandubhai Patel better known as Jeetu Patel, owns or has an interest in at least half of the 13 companies discovered to have been paid more than 90.3bn/- from the EPA account using false and forged documents.

He has been verified as the bona fide owner of four of the companies - Navycut Tobacco (T) Limited, Ndovu Soaps Limited, Bina Resorts Limited and Bencon International Limited and is believed to have links to at least three more companies on the same list - Maltan Mining Company Limited, Bora Hotels & Apartments Limited and B.V. Holdings Limited.

THISDAY has also discovered that Jeetu Patel, who holds a British passport, resides in an expensive mansion overlooking the Indian Ocean in the upmarket Msasani suburb in Dar es Salaam. An on-the-spot check of the well-guarded property on Plot Number 1413, near the Coral Beach Hotel and with an estimated value of around $5m (approx. 6bn/-), established that Patel lives there alone.

Apart from owning a string of companies that directly benefited from the EPA account scam, Patel is chairman and managing director of Noble Azania Group, the parent company of several local firms involved in trading, agriculture, manufacturing and the automobile business.

Companies that fall under the group include Noble Azania Auto Spares Limited, K. N. Cure Limited, Noble Agricultural Enterprises Limited, Holden Ginners Limited, Noble Azania Industries Limited, Noble Foods and Beverages Limited, Noble Distilleries Limited, and Noble Motors Limited.

Patel is also understood to hold a huge stake in the recently-inaugurated Bank M (Tanzania) Limited, through Noble Azania Investments. He is one of the bank’s major shareholders, having invested 1.3bn/- out of its initial listed share capital of 6.5bn/-.

Another company identified by a special audit of the EPA account as having benefited from irregular payments is KERNEL Limited, linked to another local businessman going by the name of Johnson Lukaza, which is on a separate list of nine companies that were paid a total amount of over 42bn/- without relevant supporting documents.

Like Jeetu Patel, Lukaza also owns a posh house (pictured) on Plot Number 1480 in the fashionable Msasani suburb, while the KERNEL Limited offices are located in the Regent Estate suburb.

Meanwhile, the Minister for Public Safety and Security, Bakari Mwapachu, yesterday moved to alleviate growing concerns that some of the individuals involved in the EPA account looting may flee the country.

’’Where can they run to? The world is globalized and borderless they will be arrested wherever they go,’’ Mwapachu told THISDAY in an interview.

He added: ’’Tanzania and other countries are signatories to several international treaties against terrorism, trans-national crime and money-laundering, which can be used to track down fugitives.’’

Asked about the assets freeze option, Mwapachu said the government would make sure the embezzled funds are recovered from all those proven to have been paid through forged documents.

’’The government respects the rule of law and everyone is presumed innocent until proven guilty. But, if the courts determine that someone is in possession of ill-gotten assets, the law will follow its course,’’ he said.

President Jakaya Kikwete last week sacked the long-serving BoT governor Dr Daudi Ballali after the special audit by international firm Ernst & Young confirmed the massive looting of the EPA account.

The president also directed Attorney General Johnson Mwanyika to team up with Inspector General of Police Saidi Mwema and Prevention and Combating of Corruption Bureau (PCCB) Director Edward Hosea to pinpoint who exactly was involved in the scam and prosecute them.

The trio has been given six months to complete the job.