High Court to determine DPP's appeal in 12bn/- case tomorrow

THE outcome of an appeal lodged by the Director of Public Prosecutions (DPP), challenging deletion of money laundering count in the 12bn/- trial of former Tanzania Revenue Authority (TRA) Commissioner General, Harry Kitilya, and two others, will be known tomorrow.

Judge Edson Mkasimongwa, who is hearing the appeal before the High Court in Dar es Salaam was yesterday scheduled to deliver the judgment on the matter, but could not make it because he had not completed writing the same, saying he was indisposed.

In the appeal, the DPP has advanced five grounds to fault the decision given by the Kisutu Resident Magistrate’s Court early this year, alleging that the presiding magistrate erred in law in striking the money laundering count.

He states that the presiding magistrate erred in law in holding that the count was defective and confusing to the extent the accused person may not be in a position of understanding clearly that offence they are specifically being charged with so as to be able tpo prepare themselves for defence.

The DPP states that the magistrate erred in holding that the charge could not be amended, substituted or altered under the law and that the subordinate court has inherent powers to control proceedings before it when the need arises.

In the case, other accused persons are Shose Sinare, former Miss Tanzania and Head of Investment Banking at Stanbic Bank and Sioi Solomon, former Chief Legal Counsel to the bank. The prosecution charges them of the offence, allegedly committed between March 13 and September last year.

They allegedly engaged themselves in a transaction involving six million US dollars by transferring, withdrawing and depositing money relating to that transaction in different bank accounts maintained by Enterprise Growth Market Advisors Limited at Stanbic Bank Tanzania Limited and KCB Bank Limited.

The prosecution claims before the court further that the accused persons ought to have known that the said money was the proceeds of a predicate offence, which is forgery. Apart from money laundering count, the accused persons are also charged with conspiracy to commit and offence, forgery, uttering false documents and obtaining six million US dollars (about 12bn/-) by false pretences.

On different dates between August 2012 and March 2013, within the city of Dar es Salaam, the three accused persons allegedly conspired together and other people who are not in court to commit offence of obtaining money by false pretences from the government.

It is claimed that on November 5, 2012, at Stanbic Bank in the city, all the three accused persons , with intent to deceit, made a false collaboration agreement purporting to show that the bank has established a consortium to collaborate with Enterprise Growth Market advisors (EGMA) Limited.

The purpose, according to the prosecution, was to arrange for financing in the amount of 550 million US dollars to the government of Tanzania under which EGMA would arrange for negotiation and meeting involving the financing facilitate understanding on the technicalities of the financing to the government.

It is claimed further that the EGMA was also to arrange for review finance documents and facilitate the provision of relevant documents or approval that would be required by relevant Tanzania authorities, the fact which the accused persons knew to be false.

According to the prosecution, in March 2013 in the city, Kitilya, Sinare and Solomon, with intent to defraud, jointly and together obtained from the government six million US dollars (about 12bn/-) by falsely pretending that the money was a facilitation fee payable to EGMA Limited.

Such amount, it is alleged, was to facilitate together with Stanbic Bank Tanzania a loan to the government of the United Republic of Tanzania in the amount of 600 million US dollars.

‘Dr’ Mwaka, four other herbalists challenge state decision

FIVE herbalists, including Mwaka Juma Mwaka alias ‘Dr Mwaka,’ Abdullah Mandai, Simon Risigwa, Fadhir Kabujanja and John Lupimo, have challenged in the High Court, the government’s decision to deregister them as alternative medical practitioners and their herbal clinics.

They have filed an application against three respondents, the Traditional and Alternative Health Practices Council, Permanent Secretary, Minister for Health, Community Development, Gender, Elderly and Children and Attorney General, seeking for leave to sue the government on the matter.

Judge Ama Munisi was yesterday set to hear the application in question. However, the session was pushed forward to tomorrow following a move by the Attorney General (AG) to present two grounds of objections for the dismissal of the herbalists’ case.

In the grounds of objections, the AG alleges that the herbalists, who are the applicants, have not exhausted all other channels available before resorting to High Court action and that the affidavit lodged to support the application in question was “incurably defective’’.

Through Dr Lucas Charles Kamanija, the applicants have advanced several grounds to fault the government’s decision, notably acting under utra vires or illegality, being biased or discriminational, irrational or unreasonableness and violation of the right to a fair hearing.

According to the statement filed to support the application, the applicants are seeking for ‘orders of certiorari’ to remove into the court and quash the purported decision of the council’s allegations against them contained in summons dated June 14 and 20.

They are applying for orders of certiorari to remove into the court and quash the allegations and purported decisions by the ministry against them, which cancelled their registrations, their aids and herbal clinics.

The applicants are further seeking for ‘orders of mandamus’ to compel and direct the respondents to act in accordance with the law, challenging an order for prohibition and to restrain them from illegally harassing the applicants and interfering with their alternative medicineherbology practices.

The development comes following an order for Mwaka’s arrest given by the ministry’s Deputy Minister, Dr Khamis Kigwangalla, after an impromptu visit at the herbalist’s clinic located at Ilala in the city.

Mwaka is accused of providing services to people even after his clinic, Foreplan Clinic, was deregistered on July 11, this year, by the Traditional and Alternative Health Practices Council (TAHPC) for violating its regulations and guidelines.

Following the ban on the clinic, Mwaka is reported to have remained defiant by changing the name of the treatment centre from Foreplan Clinic to Foreplan Tanzania Limited and continued to offer services and promote the same through television and radio programmes.

CAG to probe Mbeya Market

THE Controller and Auditor General (CAG) has been directed to conduct a special audit in Mbeya City Council in regard to questionable costs for the construction of Mwanjelwa Market, which reportedly shot up from 16bn/- to 26bn/-.

“Construction costs for the market was initially pegged at 16bn/- but the amount soared by 10bn/- to 26bn/- due to some dishonest officials, the government will take actions against all those behind the embezzlement,” the Prime Minister, Mr Kassim Majaliwa, said here yesterday as he continues with his working tour of Mbeya Region.

In the same vein, the Premier has issued a three-day ultimatum to Mbeya Regional Commissioner Amos Makala to probe and identify officials who swindled funds amounting to 489m/- provided by CRDB Bank for development of the market.

Mr Majaliwa issued the directives here during an impromptu visit at the marketplace where he uncovered the suspected misappropriation of public funds. “All those who will be found to have swindled the funds after the audit by the CAG will be held responsible to serve as a lesson to other dishonest officials”, he remarked.

The inflated costs caused delays in implementation of the project, resulting in the Mbeya City Council to dish out 200m/- each month to service the debt issued for construction of the market, according to the PM.

Mr Majaliwa also directed the RC to ensure that the city council recompenses rental fees paid by a businessperson who has been leased a compartment meant to collect garbage so that the cubicle is used for its intended purpose.

During the visit at the market, the PM was equally irked that some cubicles were not occupied in which he directed Mr Makala to ensure that traders who were leased the compartments start operating or risk losing the stalls to other traders.

Some of the traders informed the PM that some crooked individuals had acquired spaces at the market with an aim of sub-letting them to traders at rental fees higher than those charged by the city council, denying access to bonafide beneficiaries.

One of the traders, who identified himself as Mohammed Said, told the Premier that individuals hoarding the cubicles were sub-letting them at between 20m/- and 40m/- depending on the position of the respective compartment.

Mr Makala had earlier informed the prime minister that the market was facing a number of challenges, explaining that even traders who had spaces before the market was destroyed by fire in the 2000s were not given priority in the new market.

Abbas picked new Information Director

INFORMATION, Culture, Arts and Sports Minister Nape Nnauye has appointed Mr Hassan Abbas the Director of Tanzania Information Services, MAELEZO, and Chief Government Spokesperson.

Mr Nnauye told reporters in Dar es Salaam yesterday that the appointment follows the transfer of the former Director, Mr Assah Mwambene, who was shifted to the Ministry of Foreign Affairs and East African Cooperation on March 7.

“The appointment of Mr Abbas was carried out as per the Public Service Act No 8 Section 6(1) (b) and became effective on August 5, this year,” said Mr Nnauye. Before his appointment, Mr Abbas was the Manager of Information and Communications at the President’s Delivery Bureau, which is responsible for the implementation of the Big Results Now (Project) BRN.

Mr Nnauye took the opportunity to extend recognition to Ms Zamaradi Kawawa, who was acting on the position “for the well-done job, which she carried out with the highest degree of commitment and integrity’’.

He called on media stakeholders and members of the public to work together with the newly-appointed director in his role as the Chief Government Spokesperson “We have great hopes with him and we believe the media will make major reforms to take us where we want to go,” he said.

On his part, Mr Abbas thanked the minister for the appointment, pledging major reforms in the department in accordance with changed times. “I will need time to plan and come up with a strategic plan along with creating mechanisms that would allow for feedback by the people. Expect changes in the department and the release of timely information,” pledged the new TIS director.

Mr Abbas called for cooperation, saying he has been in the media for about ten years beginning as a correspondent and rising to the top as a managing editor in addition to serving the government for about seven years in different positions.

“After identifying my priorities, I will call you to come and hear my strategies,” Mr Abbas pledged. Responding to a question on some of the infringing media laws in the country, the minister said much as efforts are being done in pioneering media bills, media outlets ought to respect and adhere to the existing laws.

“If the media carries inciting news, the government will act for the sake of maintaining law and order because there is no law without boundaries,” Mr Nnauye pointed out.

Don’t hold protest demos, cleric advises Chadema

RENOWNED evangelist Reverend Anthony Lusekelo has warned leaders and members of opposition CHADEMA against their intended countrywide demonstrations on September 1, urging them to engage the government on dialogue to address their alleged grievances.

The word of caution from Rev Lusekelo follows statements by Chadema leaders on the so- called “Countrywide Defiance Day” next month, which has been banned by the government, with President John Magufuli warning of stern action against those who will take part.

The top-flight preacher as well urged Tanzanians to give more time to President Magufuli to carry out his duties, observing that it would be unfair to gauge his performance after just nine months since he assumed office.

Appearing on a television programme on Monday, Rev Lusekelo noted with concerns how he had tried to contact CHADEMA leaders to shelve the planned demos which have been outlawed by the government in vain.

“There is no alternative to peace that we currently enjoy as a country and we should not allow members of political parties to throw the country into turmoil,” Rev Lusekelo of the GRC Church at Ubungo Kibangu in Dar es Salaam stated.

He added: “Registered political parties have less than six million people and yet the country’s population is roughly 50 million people. We should not allow the small fraction of the populace to disturb peace and tranquility.”

He expressed fears that the country will be thrown into violence if the opposition party sticks to the banned protests, recalling the ugly scenes from Zanzibar in 2001 when supporters of Civic United Front (CUF) took to the streets despite the government’s ban on protests.

“There is nothing as dangerous as internal conflicts pitting members of political parties and armed forces,” he noted. If political parties are aggrieved by the government’s decision, they should use available avenues for dialogue such as the Tanzania Centre for Democracy (TCD) rather than going to the streets, which could lead to bloodshed, he pointed out.

Rev Lusekelo revealed during the ‘Mada Moto’ programme on Channel Ten that he had tried to contact some CHADEMA leaders to advise them against the demos but none of them would return his calls, describing them as ‘big-headed.’

The preacher urged Tanzanians to rally behind President Magufuli who is currently working to unite the country after the hotly-contested general election last year.

“Dr Magufuli has been in office for just nine months and we will be unfair to draw conclusion on his performance at this moment, Dr Magufuli should be given more time before we can point out failings in his administration,” the preacher remarked.

He commended President Magufuli for remarkable achievements during the first few months in office, particularly on his anti-corruption crusade and curbing misuse of public funds. “The God has given us a kind of a leader we wanted; one who has shown that he values the welfare of all people.

We should give him at least three years before we start pointing weaknesses of his presidency,” Rev Lusekelo explained. On the other hand, the cleric proposed that former presidents in Tanzania should pull out of their respective political parties upon retirement to remain ‘’fountains of wisdom’’ for the country. “The Late Mwalimu Julius Nyerere was the guiding light for the nation; but since his death, we lack such a personality.

It is high time former presidents pulled out of their political parties. This will give them unprejudiced authority to take over from Nyerere’s footpath”, Rev Lusekelo suggested.

The evangelist reasoned that since presidents serve all Tanzanians regardless of their political affiliations, they would be in a better position to advise and guide the nation on maintenance of peace and security upon their retirement.

Credits to private sector decline

THE growth of credit to the private sector has slowed down to 16.2 percent in May from 19.3 percent in the previous month, the situation that analysts attribute to the tightening liquidity stance in the circulation.

According to the Bank of Tanzania (BoT) monthly economic review for June, a large slowdown in growth was particularly marked in transport and communication, building and construction, hotels and restaurants and personal activities.

For example, the annual growth of bank’s credit to major economic activities to transport and communication declined to 8.7 per cent in May from 19.1 per cent in April and 31.9 per cent in the corresponding period last year.

Similarly, the growth of credit to the private sector was lower at 19.3 percent in the year ending April 2016 compared with 23.6 percent in March. A senior lecturer at the University of Dar es Salaam, Prof Haji Semboja said government crackdown on corruption and shifting its funds from commercial banks to the BoT has impacted greatly on the liquidity level in the circulation and lenders’ capacity to issue loans.

“This is a necessary move taken by the government to instill discipline in the use of public funds to the planned expenditure. What is currently observed is the lack of cheap money in the circulation as it was before,” he said.

He however cautioned that cutting down expenditures on various services from the private sector which is the engine of the economy may in the long run cause some economic activities to stumble, thus affecting banks and their capacity to lend. He said banks deposits mobilisation depends on some economic activities particularly from the private sector, thus when they seize, also affect the other part.

“It is high time that research were done regularly on such areas that have huge impact on the economy in order to apply flexible measures which are necessary to make some economic activities vibrant.

The BoT report shows further that credit extended to trade activities and personal loans continued to account for the largest share of total outstanding credit by about 38.4 percent in the tune of 19.8 percent and 18.6 percent respectively, followed by manufacturing 10.6 percent and agriculture 7.9 percent.

Noteworthy that the share of credit to trade and manufacturing related activities increased relative to the preceding month, while that of other activities went up.

The year ended May witnessed the extended broad money supply grew by 11.9 percent, down from 12.9 percent in the year ending April 2016. The outturn was mainly caused by a slowdown in the growth of credit to the private sector and net foreign assets (NFA) of the banking system. The NFA of the banking system recorded year on year growth of 7.1 percent, significantly lower compared with 11.0 per cent in April.

This was mainly caused by net foreign assets of banks which contracted by 45 per cent following an increase in foreign borrowing and decrease in short term placements and deposits abroad.

Mbeya plant to make sleepers for standard gauge railway

MBEYA based Kongolo Concrete Sleeper Plant (KCSP) will produce reinforced concrete sleepers to be used in the construction of the standardgauge railway expected to begin soon so as to cut costs, the government has said.

The Minister for Works, Transport and Communication, Prof Makame Mbarawa. said in Mbeya over the weekend that it was the intention of the government for the Mbeya plant owned by Tanzania- Zambia Railways Authority (TAZARA) produce the sleepers for the railway line so as to save cost and boost revenue of the jointly owned railway authority.

“I will make sure the contractor who will construct the railway will use sleepers produced by this plant instead of importing them from abroad,” said Prof Mbarawa in his tour of the plant over the weekend and noted he would direct a special committee on the construction of the railway to visit the plant to assess its production capacity.

Kongolo Concrete Sleeper Plant (KCSP) manufactures concrete sleeper for the 1,860km Tazara railway track. It also produces high quality ballast as the main product for railway maintenance whilst aggregates, chippings, boulders, quarry dust and crusher dust are produced as by-products for sale to the public, according to information from Tazara website.

The government is committed to revive industries in the country so as to increase job opportunities for Tanzanians and to propel the country to the middle income status by 2025 through industrial development.

The minister said the government would save significant amount of foreign currency by using rail sleepers manufactured within the country and would also be boosting revenue for Tazara as well as expand business scope for sleepers for local and foreign customers.

Prof Mbarawa has also inspected laboratory for measuring quarry quality at the plant and issued one month for TAZARA to obtain Tanzania Bureau of Standard (TBS) certificate of standard so that it could be formalized.

The Head of Kongolo Plant, Boniface Phiri, said the opportunity to manufacture sleepers for the envisaged standard gauge railway would boost production at the plant and increase revenue to the authority. He said they would increase machinery so that we can raise our production and improve quality to meet what is required in the mega railway project, he said.

Kongolo Concrete Sleeper Plant (KCSP) is unique in East and Central Africa which manufacture rail sleepers and has capacity of producing 24,000 sleepers annually. Prof. Mbarawa was in Mbeya to inspect railway, road and communication infrastructure