Tanzania: Parastatals Fleeced of U.S. $77 Million
By Joseph Mwamunyange,
The East African
14 September 2009
Tanzania's large state-owned entities have been fleeced of up to Tsh100 billion ($77 million) in what could be the second biggest corporate fraud in the country's history after the 2005/2006 central bank External Payment Arrears Account (EPA) scandal in which the government lost $131 million in dubious payments to 22 local firms.
Tanzania's large state-owned entities have been fleeced of up to Tsh100 billion ($77 million) in what could be the second biggest corporate fraud in the country's history after the 2005/2006 central bank External Payment Arrears Account (EPA) scandal in which the government lost $131 million in dubious payments to 22 local firms.
The EastAfrican has learnt that an international syndicate with local accomplices has siphoned off between Tsh5 billion ($5 million) and Tsh100 billion ($100 million) through a fake payment system set up to swindle the Tanzania Revenue Authority.
The fraud, The EastAfrican has been told, is still under wraps as directors of firms that lost millions of shillings and senior officers from TRA shuttle between their offices and the Ministry of Finance and Economic Affairs to explain the circumstances that led to the theft.
The syndicate, according to a highly placed source in intelligence circles, is suspected to have recruited senior and middle level staff at TRA, various banks, the Tanzania Telecommunication Company Ltd (TTCL) and the Tanzania Electric Supply Company Ltd (Tanesco), and siphoned off the money between March and August.
Detectives are trying to establish the identity of the syndicate that has struck Tanzania's financial system yet again.
Our source in intelligence said that a sophisticated replica of the newly introduced electronic money transfer system -- the Tanzania Interbank Settlement System (TISS) -- was used by the fraudsters to siphon off money supposed to have been credited to TRA accounts from the parastatal bank accounts.
Our TRA source said the fraudsters were able to log onto the system using a special code and verified that millions of shillings had been paid through TRA.com.
In this way, money that was supposed to be transferred from TTCL to TRA using the TISS system -- introduced in March this year to facilitate payments in excess of $8,000 (Tsh10 million) -- never got to the TRA.Alarm bells were sounded when TRA approached TTCL and Tanesco to pay arrears only to be told that the money had already been paid through TRA.com.
Minister for Finance and Economic Affairs Mustafa Mkulo told The EastAfrican that the fraudsters are suspected to have swindled some $5 million -- though our source within the TRA insisted the amount was $77 million -- and confirmed that there is an investigation going on. Mr Mkulo said that he had already discussed the issue with TRA Commissioner General Harry Kitilya.
"I wouldn't want to comment on a case that has already been handed over for investigations, but as the minister in charge and under whose portfolio TRA falls, I will have to wait for the investigation report," he said.
According to the Bank of Tanzania, TISS is advantageous in that it offers same-day settlement as opposed to the cheque system which can take up to seven days for cheques to be cleared.
In addition, TISS is supposed to be more secure due to the fact that authentication is done prior to a payment being issued while cheques are authenticated after the payments have been effected.
According to the central bank, the introduction of TISS has also led to efficiency in the collection of taxes by the TRA, as all tax payments of a value of Tsh5 million ($4,000) and above are now remitted through TISS. The arrangement, says the bank, aims at minimising fraud inherent in the cheque system as well as reducing float.
However, the investigations into the alleged fraud at the TRA show that the new system is susceptible to fraud or manipulation.The Tanzania Interbank Settlement System (TISS) is an electronic system that interlinks all the banks in the country and offer real-time settlement for high value and time-sensitive transactions.
The system is expected to go regional across East Africa once all the original partner states of the EAC have fulfilled the requirements.
The central banks of Kenya, Tanzania and Uganda have achieved among other things implementation of the Real Time Gross Settlement System.Reliable sources in the Tanzania government told The EastAfrican in Dar es Salaam last week that the alleged fraudsters came up with an innovation that can beat any code of the bank, enabling them to siphon out money almost at will.The money was transferred to TRA through TRA.com instead of the TRA system and all incriminating evidence erased.
An official with a clearing and forwarding company said that TRA staff were telling firms to transfer the money to TRA through TRA.com whenever they wanted to make payments above $8,000 (Tsh10 million).Even though the new electronic money transfer system provides safeguards, authorities will have to rethink its application or improve the way it is applied before more millions are lost to fraudsters, said a TRA source.
The amount of money in question -- $77 million -- is almost half the amounts involved in the External Payment Arrear Account scandal.So far the government has managed to recover more than $56 million (Tsh60 billion) from firms involved in the EPA scandal with some suspects in court.
alright shukrani kwa kugundua hiyo kitu, kazi kwenu mliokuwa mnajilipa cheque kwa njia za panya, najua matumbo ni moto kutokana na uchunguzi. lakini yote mlitaka wenye we kutokana na kuwaibia walalahoi tunao pigika na kuleta vitu huko mkituongozea kodi za ajabu ajabu huku mkisema Invoice yetu ni feki, tutazidi kuwaumbua tu TRA.
ReplyDeleteTutazidi kuwaumbua tu TRAna wizi wenu mpaka muuache kutunyanyasa na makodi kodi yenu ya kijinga inabidi mfuate utaratibu watu wapende kulipa kodi.
ReplyDeleteCommissioner General and the whole TRA mgt needs extensive overhaul, otherwise this will just be like the beginning of another EPA. It is not an accident, it is something planned.
ReplyDeleteDuuh!! Kazi ipo!!, jamaa wanatumia akili zao kuvumbua mbinu za ufisadi na kuiba tu - Eee Mola ikomboe nchi yetu kutoka kwa mafisadi. Mungu ibariki Tanzania.
ReplyDeleteNA BADO!
ReplyDeletehaya mambo hayawezi kuisha kwa vile hakuna hatua zozote zinachukuliwa na viongozi wa taifa.
ReplyDeletekwanini serikali imekuwa ikiwapa fedha hao wawekezaji wa india wakati walijua kuna ufisadi hapo. wahindi na wawekezaji wengi ni wajanja sana. wakati serikali iliona hao wawekezaji wanaomba kuongezewa pesa mara kwa mara wangekataa. kama ni wawekezaji mbona wamekuwa wakipewa fedha na serikali kuendesha hilo shirika. hizo fedha serikali iliyopatia hiyo kampuni kutoka india ingewapatia watanzania ili wafanye hiyo kazi. kama wangeshindwa kuifanya vizuri at least hizo fedha zingebaki nchini. hiyo kampuni ya india waliajiri watu kufanya hiyo kazi na kama kampuni ya kitanzania ingepata hiyo kazi ingeajiri wataalam kutoka nje kushirikiana na kuwafunza wataalam wa kitanzania. hapa inaonekana kulikuwa na ufisadi mkubwa ndio hiyo kampuni ya india ikaziidi kuongezewa fedha.
ReplyDeleteKaka kitoweo (Ashakum si matusi) hebu mtafsirieni anon wa Tue Sep 15, 09:17:00 PM. Naona ligha inamuumbua. Au ndio yale yale ya uvivu wa kusoma na kuelewa nini kinaendelea, ukija stuka umeliwa bao kwa wajanja kuongeza sifuri kadhaa mbele.
ReplyDeleteKiingereza kweli kimemshinda ndugu yetu inaonesha alikimbia umande huyo Anon Tue Sept15, 09:15:00 PM.Habari inahusu ufisadi uliotokea kupitia TRA.COM kwa mfumo mpya TISS yeye anakuja na kali ya siku eti wawekezaji wa kutoka India wasiongezwe pesa.Anko nanihii fikiria kuitafsiri post hii ili wengi waipate kwani wakiiona ndefu halafu Kiingereza hawaisomi kabisa wanaogopa lugha.Ni aibu kwa kweli tujitahidi kusoma tufute ujinga.
ReplyDeleteJamani hawa wezi tunao huku mitani wanajifanya wajanja na ma Vogue yao,wanajiita vijana wadogo wenye hela nyingi,kumbe wezi tu,hili swala nimesikia liko pale PCCB,hawa majizi ndo wanatufanya watanzania kila siku tujione tuna maisha magumu,Serikali mko wapi?si muwapeleke mahakamani.juzi tu mabosi wa EPA wamepandishwa kwa kesi ya uhujumu uchumi,hawa waliofanya hili si wanyongwe tu fasta.
ReplyDeleteMichuzi haya ndo mambo ya kuweka kwenye blog ya jamii.
MBAVU SINA KWA KUCHEKA. HAO JAMAA WANAO KASHIFU LUGHA NAONA KWELI NI MAPUMBAFU. KWANINI WASIONGEE JUU YA IYO TOPIC. MIMI NINAONA HAO JAMAA WANA ELIMU NDOGO SANA NA TOPICS KAMA HIZI HAWAZIELEWI. TUNAHITAJI AKINA MASHAKA NA WENGINE WENGI WA AINA HIYO NA SIO WATU AMBAO VISHWA VYAO VIMEJAA PUMBA UNLESS HAO JAMAA WENYE KUKASHIFU NI WAINDI.
ReplyDeleteKwa kweli "this is too much!", mara Dr. Rashid na wenzake wanafisadi Tanesco, mara EPA, mara mikataba ya madini, mara wananchi kwenye mbuga wanadhalilishwa, mara Mramba na Yona wamechukua rushwa kwa kutoa misamaha, mara Mkapa na Yona wamejirithisha Mgodi, mara BOT wamezidisha gharama za uchapishaji noti, mara makampuni bongo yamekula hela za BOT za mambo ya SME, mara Tanga Cement hawalipi gharama za umeme, mara Wabunge wanajilipa mamilioni kwa mwezi, mara wakandarasi wa barabara ni ma "cowboys" wanapewa hela hawafanyi kazi na hakuna wa kulalamika, mara Dawasa ina wateja alfu 70 tu, mara viongozi wamejiagizia mashangingi, JK kusafiri na entourage kubwa kila wiki?mara.......yaani hakuna mwisho! Vihela vyenyewe tulivyonavyo ni vya misaada, sasa hawa watu waliotajwa wakizitafuna, kweli tutapata maji kila nyumba?umeme?barabara za lami?shule za chekechea?msing?sekondari?vyuo?huduma za jamii?kazi kwa watu?..?...? MUNGU TUOKOE JAMANI!?
ReplyDelete