THE 12bn/- fraud and money laundering trial of former Commissioner General of the Tanzania Revenue Authority (TRA) Harry Kitilya yesterday took a new twist when the Director of Public Prosecutions (DPP) filed new charges and joined two more officials into the case.
Initially, Kitilya was charged alongside Shose Sinare, who was Head of Investment Banking at Stanbic Bank and Sioi Graham Solomon, former Chief Legal Counsel of the bank, at the Kisutu Resident Magistrate’s Court in Dar es Salaam.
In a dramatic turn of events, however, the DPP decided to drop the old charges against the trio by entering a “nolle prosequi” certificate in terms of section 91 (1) of the Criminal Procedure Act (ACT) and filed 58 new counts against the accused.
This time around, two senior officials with the Ministry of Finance, Bedason Shallanda, who is the Commissioner for Policy Analysis-Debt and Alfred Misana, the Assistant Commissioner for Policy Analysis-Debt, were joined into the criminal matter.
Before Senior Resident Magistrate Augustina Mbando, all the five accused were not allowed to enter plea to the charges because they fall under the Economic and Organised Crime Control Act. The case was adjourned to January 24, 2019 for mention. Investigations into the case have been completed.
In the new case, the accused are charged with leading organised crime, forgery, uttering false documents, use of documents intended to mislead principal, obtaining money by false pretences, money laundering and occasioning loss to a specified authority.
Kitilya alone faces 43 money laundering counts, Shose, who is also a former Miss Tanzania is charged with two counts of forgery, two counts of uttering false documents and five money laundering counts. Kitilya, Shose and Solomon are jointly facing one forgery count.
Shallanda and Misana are jointly facing one count of use of documents intended to mislead principal, while all five accused are jointly facing one count of leading organised crime, one count of money laundering, obtaining money by false pretences and occasioning loss to the government.
The prosecution led by Principal State Attorneys Hashim Ngole and Pendo Makondo, Senior State Attorney Patrick Mwita, State Attorney George Barasa and prosecutors with Prevention and Combating of Corruption Bureau (PCCB) claimed that the offences are alleged to have been committed between 2012 and 2015.
It is alleged that between February 20, 2012 and June 1, 2015 at various places in Dar es Salaam, jointly and together all accused with others not in court, intentionally organised a criminal racket for obtaining money from the government of Tanzania, thereby causing loss of 600 million US dollars.
The prosecution alleged that between March 15, 2013 and January 10, 2014 in the city, with intent to defraud, all accused obtained six million US dollars from the government of the United Republic of Tanzania.
It is alleged that the accused falsely pretending that such money was facilitation fee payable to Enterprise Growth Market Advisors (EGMA) Limited, together with Stanbic Bank Tanzania Limited, a loan to the government in the amount of 600 million US dollars.
The accused are charged with money laundering in that between March 18, 2013 and January 10, 2014, engaged themselves in transaction involving the six million US dollars by withdrawing money in an account maintained at Stanbic Bank, while knowing the money was proceed of forgery.
Between May 1, 2012 and June 1, 2015 in Dar es Salaam, willfully, all accused raised the arrangement fee of the loan to the government amounting to 600 million US dollars from 1.4 to 2.4 per cent, thereby causing the government to suffer a pecuniary loss of six million US dollars.
On August 2, 2012 at Stanbic Bank Tanzania Limited headquarters in Kinondoni District in the city, with intent to deceit, Sinare made a false Standard Bank’s financing proposal dated August 2, 2012.
She purportedly showed that Standard Bank London in collaboration with Stanbic Bank Tanzania would raise a loan amounting to 550 million US dollars for the government of the United Republic of Tanzania at a facilitation fee of 2.4 per cent of the principal amount, the fact she knew to be false.
The court heard that on August 13, 2012, the former Miss Tanzania allegedly fraudulently uttered the alleged false document at the Ministry of Finance within Ilala District in the city.
It is alleged further that on September 17, 2012, at Stanbic Bank, Sinare made a false amended mandate letter for proposed offering of 550 million US dollars financing.
She allegedly purported that Stanbic Bank (Tanzania) Limited in collaboration with Standard Bank London would raise the money for the government at an arrangement fee of 2.4 per cent of the principal amount, the fact she knew to be false.
The prosecution alleged that the same accused person uttered the said letter at the office of the Ministry of Finance for similar purposes.
In January 2013, at Stanbic Bank in the city, Kitilya, Sinare and Solomon, with intent to deceit, allegedly made a false collaboration agreement dated November 5, 2012, purporting to show that the bank has established a consortium to collaborate with EGMA Limited to arrange for the financing of the money.
The court heard that between September 11 and October 3, 2012, at the Ministry of Finance, within Ilala District, being employees of the ministry, Shallanda and Misana, with intent to mislead their principal, the Permanent Secretary, used the Standard Bank’s Financing Proposal.
Such document, according to the prosecution, contained false statement to show that Stanbic Bank (Tanzania) Limited in collaboration with Standard Bank London, would raise the loan of 550 million US dollars for the government of Tanzania at the said arrangement fee.