BAE: The Tanzanian connection
Source: www.bbc.co.uk
Europe's biggest defence company, manufactures the Typhoon fighter By Andrew Hosken The Serious Fraud Office (SFO) says it will begin what promises to be the biggest corporate corruption prosecution in British legal history.
It is asking the Attorney General for the go-ahead to prosecute BAE for bribery under the 2001 Prevention of Corruption (Amendment) Act.
One of the four countries involved in the alleged corrupt deals is Tanzania. Though far from the largest deal, it looks certain to cause the biggest heartache in Downing Street.
In 2001, Tanzania, one of the world's poorest countries, decided to purchase a military air traffic control system from BAE.
Clare Short, then secretary of state for international development, says she was horrified by the move and was convinced it was a corrupt deal. "I was really shocked by the behaviour of British Aerospace and the collusion of all these government departments in such a gross and disgraceful project," she told me.
"Even when I got all the information and took it to the highest levels of the government, I still couldn't stop it."
'Grubby'Ms Short says that a number of factors convinced her that this was a corrupt deal. She says that the deal had been proposed 10 years earlier but had been blocked by intervention by the World Bank and the UK's Overseas Development Administration, the precursor to the Department for International Development.
"Then it came back as half a project. The thing was so grubby from beginning to end and, of course, it was so old that the technology was overtaken. Tanzania didn't have military aircraft. It needed civil air traffic control improvement in order to improve its tourist industry."
But Clare Short was far from alone in expressing deep concern about the BAE-Tanzania deal. In October 2001, a report by the International Civil Aviation Organisation, a part of the United Nations, said:
"The system as contracted is primarily a military system and can provide limited support to civil air traffic control purposes. The purchase of additional equipment… would be required to render it useful for civil air traffic control.
However, if it is to be used primarily for civil air traffic control purposes, the proposed system is not adequate and too expensive."
Clare Short says tha Tanzanian deal was "a disgraceful project" At the same time in 2001, Clare Short had agreed a £35m aid package for Tanzania to help provide more children with education but saw virtually the whole sum being effectively gobbled up in the air traffic control system deal.
She opposed the deal in cabinet, a row which soon became public, but claims that in December 2001 one person above all insisted the necessary export licence be given: Tony Blair. "Tony was absolutely dedicated to all arms sales proposals," she says.
"Whenever British Aerospace wanted anything, he supported them 100%. He didn't seem to understand that there are matters of principle concerned. He had also been duped and bought the argument that it's always good for the British economy, which is absolutely not so."
In 2006 Tony Blair made one of the most controversial decisions of his premiership, helping to force the closure of an inquiry by the Serious Fraud Office into allegations that British Aerospace had paid bribes to win a lucrative arms contract with Saudi Arabia.
"I stick by that," he said six months later, "and the idea frankly that such an investigation could be conducted without doing damage to our relationship is cloud cuckoo land."
Nini kitawazuia safari hii kusingizia kuwa kuwa usalama wa taifa utakuwa hatarini? Acha Kuwarusha roho akina nanihii, Vijisenti vyao na wao viko/wako salama!
ReplyDelete"A separate investigation into BAE by the SFO was dropped in 2007 after it was decided that national security was at risk" (BBC,http://news.bbc.co.uk/2/hi/business/8284073.stm).
Kaka hii imetulia sijui JK ataionaaaaaa!!!!???? Hata asipoiona hawa jamaa watamlazimisha aione hawatokubali, kwa TZ yaishe kishkaji.
ReplyDeleteMzee wa vijisenti meli hiyoooooooo.
Then Prime Minister Tony Blair said continuing with the investigation would endanger vital intelligence links in the fight against terror!.Ithink he was part of the deal!!
ReplyDeleteNilisikiliza bbc radio four asubuhi ya leo (alhamisi) na kwa mujibu wa taarifa ilivyoelezwa ni dhahiri kabisa kuwa mr blair alikuwemo katika deal pamoja na viongozi fulani tanzania.
ReplyDeleteThis is when the supposedly big brains mashaka's are no where to be found. Wouldn't it be helpful to know the opinion of our potential president?
ReplyDeleteWhat a shame, yani Clare Short anaonyesha machungu na Tanzania kuliko hata President wetu.
ReplyDeleteAAAAh huyu wa BBC mbona hajamalizia quote ya Blair ngoja nisaidie......"And Cloud cuckoo land is where Liberal Democrat have their habitat"
ReplyDeleteJk jamani Mzee wa-vijisenti hajafika Segerea hadi sasa..uchunguzi si umekwisha??!!
Mzawa
maoni ya watanzania, wakati huo, hongera kwa walioona mbali..wale wenzangu na miye, mmnh, mmnh, mmnh!!!..
ReplyDelete-Tanzania's President Benjamin Mkapa says the east African country needs the new radar system to replace obsolete technology.
http://news.bbc.co.uk/2/hi/africa/1723673.stm
- One young student in Dar es Salaam was livid.
"It is a shame we need the foreign press to tell us what is happening in our country. Can't the money be used on education or health? Look at the state of our roads. Personally I am outraged."
-Professor Ibrahim Lipumba says the deal has been shrouded in secrecy
-the Minister for Foreign Affairs and Internt'nl Rltns, Jakaya Kikwete, rejects such arguments: "People say we do not need this system, what are they waiting for? When two jumbo jets crash over Tanzania, will people accept the need for us to have a radar system? This problem is real not fiction,"
- Rebecca Muna, a local campaigner for debt relief, believes Tanzania should be left to make its own decisions.
There are issues to be scrutinised with reguard to this on going saga.
ReplyDeleteFrom different perspectives,I think,there are serious conflict of interests among stakeholders.
Britain(BAE) is public trading company and from corporate governance codes,the company should refrain from illegal dealings/malpractices such as bribery to securing a deal to sell technologies.
For other types of businesses such as manufacturing,retail,the code prohibits the use of child labour,has to ensure inplicitly sustainable development, avoid exploitation eg pay below minimum wages etc,these examplify unethical stuffs that do not go down well with investors.
So long as the corporate codes is voluntary ie comply and explain,the company shares prices are currently in free fall since investor have concern about ethics and invest in ethical sound companies.The company is under threat of prosecution.
From Tanzania perpectives,undoubtedly,the acquired technology provides security assurance however,decision makers could have ascertained whether,they invested the outlay in up to date defence technology,benefits of having the system should outweigh costs,strategic implications of the rada necessitude and the likelihood of events to materialise.They should have incorporate opportunity costs in their choices thus why Ms Clare Short was concerned for a poor country.
Questions compounded in the house of commons in relation to the sale as it got backing from the top(from the then UK primier,Lord Goldmith the AG) and eventual stoppage of SFO investigations.This was obvious in self interest depiction from Britain.
An opportunity has arisen to sell armotised(depreciated) technologies at bargain prices.It looked good return on investiments without sufficient attention to ethical standards,and to uninformed buyers who were apparently short-sighted in the matter.
Therefore,the tide has turned and the company(BAE) faces severe penalties as the investigations have resurfaced.
Now,what does this mean in terms of contractual parties(Tanzania)do you think there is scope for reimbursement?
well,from my international reporting standards knowledge(IAS 10) sale occurs when risks and reward of ownership pass and there are no contractual involvement.so it depends on agreements and the outcome of investigation as to whether Tanzania could be compensated from having made poor choices and deprivation.
Finally,the matter put forth immense challenges to strike a balance between interests of strakeholder groups.Issues of corruption cloud self interests traits and signify capitalistic tokens.
Mdau ( John ) UK
daskim@hotmail.com
the problem was not buying the radar, the problem was the way we went about it, BAE walituonga kununua hiyo radar, we payed a lot of money coz the radar was over priced, we did'nt have the money and we went 2 borrow, the commission paid to the agent was a lot of money(1%) of the purchasing price and it emerged that the agent mobilised the deal is the same agent helped Mkapa to buy his jet and when he was asked by makachero from uk to inspect his account in Swiz he refused (agent. Naye mzee wa vijisent alipoona hiyo issueimekuwa kali alimtumia wakili wake wa kutoka marekani.
ReplyDeletekatika hii deal Tanzania tunajifunza nini hili tuweze kutorudia makosa tena? imekwisha gundulika kuwa tulifanya makosa ndiyo maana BAE jana walikuwa wanasema wanataka kumaliza hiyo issue nje ya mahakama na kulipa faini ya 1million pound, wachunguzi wa mambo wanasema BAE wanaweza kupigwa faini ya mpaka1 billion pound, tutafika jamani? tunayaraumu mabeki kusababisha global financial problem lakini ni sababu kama hizi za kununua over priced items zinachangia kwa kiasi kikubwa.
swelaga bee
ReplyDeleteWEWE UNAYEJIITA NABII JOHN MASHAKA TUNATAKA TUWE TUNAINA MICHANGO YAKO YA KIMAONI KATIKA TOPICS OF NATIONAL INTERESTS KAMA HIZI AND THE LIKE SIO KUKAA UNATUBEBESHA MIZIGO YA ARTICLES KIBAO ZISIZO NA KICHWA WALA MIGUU. WEWE KAZI KULALAMIKA HALAFU UNATAKA WATU WACHANGIE KWENYE ENTRIES ZAKO WAKATI WEWE HUWA HATUKUONI KABISA. UWE UNACHANGIA NA UWEKE JINA LAKO ILI TUWEZE KUPIMA VIZURI UELEWA WAKO. NDIO MAANA KUNA JAMAA KILA MARA ANAKUKARIBISHA MDEBATE UNAKULA KONA!
ReplyDeleteNAANDIKA KWA LUGHA YA TAIFA, NI KWAMBA HII KESI HAITAKWENDA KOKOTE NA WALA WATANZANIA WANAOHUSISHWA NA HII KESI HAWATASHITAKIWA KWA VILE KUTAHITAJIKA USHAHIDI WA KUTOSHA AMBAO HAUTAPATIKANA KWA VILE SHIRIKA HUSIKA LILILOTOWA RUSHWA KWANZA LIMESHAANZA KICHICHINI KUTAKA KESI HII IISHE NJE YA MAHAKAMA, KWA KULIPA KIASI FULANI CHA PESA AMBACHO KITAKWENDA KWA CHARITY ORGANISATION HAPA U.K. PILI HATA KAMA WATAENDA MAHAKAMANI WANAWEZA KUSHINDA KWA VILE HII SI KESI YAO YA KWANZA YA AINA HII NA ZOTE WAMESHINDA WANA WANASHERIA BABU KUBWA, PIA HAPA U.K. KUNA HAKI YA MSHITAKIWA KUTOTOA MAELEZO YOTE ANAWEZA KUKATAA KUJIBU SWALI LOLOTE MAHAKAMANI NA NI HAKI YAKE YA MSINGI HIVYO SI RAHISI MAHAKAMANI WAKAWATAJI WAHUSIKA WA TANZANIA. PIA HAPA KESI HAIWEZI KUFUNGULIWA MPAKA ATTORNEY GENERAL WA SERIKALI AKUBALI KUFUNGULIWA KWA KESI HIYO NA NI MTU MUHIMU HAPA ANAKARIBIA KUWA KAMA WAZIRI HIVI KWANI ANAINGIA KWENYE BARAZA LA MAWAZIRI NA BUNGENI NA NI MTU WA SERIKALI NA HAPA SERIKALI HAINA INTEREST NA KESI ZA AINA HIYO KWA VILE INAAMINI ITAHARIBU JINA LA NCHI. KULIKUWEPO NA KESI YA AINA HIYO PIA ILIWAHI KUTOKEA KATI YA SHIRIKA HILOHILO NA SAUDI ARABIA NA SERIKALI YA TONY BLAIR WALIKATAA KUENDESHA KESI HIYO KWA VILE ILIHUSISHA HADI FAMILIA YA KIFLME Y A SAUDI, TUKUMBUKE BIASHARA ZA KIMATAIFA PIA UHUSISHA MAWAZIRI WA NCHI ZA NJE SERIKALI HUSIKA NA KATIKA NCHI NDOGONDOGO KAMA TANZANIA UHUSISHA PIA MARAIS WA NCHI, SASA SI RAHISI WATU KAMA HAO KUBURUZWA MAHAKAMANI HATA KWA KUTOWA USHAHIDI TU KWA VILE WALIHUSIKA KWA NAMNA MOJA AU NYINGINE KATIKA DEAL NZIMA. PIA TUKUMBUKE DUNIANI HAKUNA HAKI YA KWELI AU USAWA KWELI. MFANO NI HUU WA JUZIJUZI TU WA UMOJA WA MATAIFA TENA KATIBU MKUU MWENYEWE AMEMFUKUZA KAZI MMOJA WA BALOZI/MWAKILISHI WAKE WA AFAGHASTAN KWA KILE ALICHOKUWA AKISEMA KWAMBA UCHAGUZI WA AFAGHANISTAN WA JUZI JUZI ULIKUWA WA RUSHWA NA UKIUKWAJI WA TARATIBU NYINGI TU BASI URUDIWE TENA, SERIKALI YA AFAGHANISTAN IKAUAMBIA UMOJA WA MATAIFA HATUMTAKI HUYU MTU MUONDOWENI LA SIYO HATUTATOWA USHIRIKIANO WETU NA U.N. NA KILICHOTOKEA KAFUKUZWA NA KAZI YENYEWE NA NI HUO HUO UMOJA WA MATAIFA UNAO-PREACH DAYS IN DAYS OUT HAKI, USWANA NA KUCHUKIA RUSHWA, SASA WANAPOPATA MTU WA AINA AMBAYE ANATETEA VITU HIVYO WANAMFUKUZA KAZI HUONI HAPO KWAMBA DUNIANI HAKUNA USAWA NI MONKEY POLITICS, AND PEOPLE GO INTO PILITICS BECAUSE OF THEIR STOMACHS NOT FOR US ALL, SO THIS AS WELL APPLIES TO THE CASE IN QUESTION, DON'T EXPECT ANYTHING, I BET!!!! ITAKWISHA NYUMA YA PAZIA NA MASIKINI TUTAKUFA HIVYO HIVYO, IF THE UN IS BOGUS WHAT DO YOU EXPECT!!! CHICKEN BUSINESS.
ReplyDeleteJohn Mashaka does not tend to comment or contribute on other issues which have nothing to do with his own articles. This may be due to his arrogance of disregarding other people's contributions, or it may as well be down to his lack of confidence in making right judgements, or both of the two. He would rather conceal his judgements for the fear of exposing his weakness. Whatever the case, this demonstrates his superficiality in the necessary knowlege and character of leadership, and his opportunism to attain a position of "ulaji" in the pretext of good faith and goodwill for the people of this country.
ReplyDeleteYou may be glittering John, but you ain't no gold.
Clare Short aliipinga hii deal kidume kweli kweli hadi baadaye akaamua kujiuzulu kwenye Cabinet ya Tony. Alikuwa ana uchungu sana na wananchi wa kawaida wa kitanzania sababu mama Clare Short alishafika Dodoma vijijini na kuona watu wanavyoishi kimasikini, na ndio sababu aliipinga sana hii deal na kutaka Tanzanian government isiuziwe ili hiyo pesa ya kununulia hiyo radar ingeunganishwa na pesa ambazo Clare Short alipendekeza UK ipeleke TZ ajili ya basic needs (healthy, education, etc).
ReplyDeleteHata hao BAE System wakisema walipe hiyo £1mil fine, pesa hizo zitaishia matumboni mwa mafisadi tu na usishangae ukisikia Blair naye kamegewa.
Mrs Markus