Posts tagged as: tra

MCL, KPMG Hailed for the Top 100 SMEs Innovation

By Jesse Mikofu and Jonathan Musa

Mwanza — The Tanzania Revenue Authority (TRA) has commended Mwananchi Communications Limited (MCL) and KPMG for establishing the Top 100 Small and Medium Companies recognition platform, saying it plays a key role in stimulating the economy.

The remarks were made by TRA’s senior officer in charge of Services and Taxpayer Education, Mr Julius Mjenga, during the launch of Top SMEs Companies programme for 2017 at the Gold Crest Hotel in Mwanza City yesterday.

He urged MCL and KPMG to ensure the programme remains sustainable as it plays a key role in promoting productivity and creating a healthy environment for business competition.

“We congratulate you for this innovation as it challenges businesses to focus on growth. This is an essential contribution to revenue generation. For our economy to grow, it needs strong and stable businesses. In this way the government is able to fulfil its obligations as it can collect tangible revenues,” he observed.

Mr Mjenga challenged more small and medium companies to participate in the awards, but reminded them to observe the established standard procedures and rules.

“To every right, there is a duty. Paying tax is a duty that should be fulfilled by every firm and individual so as to enjoy their rights. You must issue and demand receipts when selling or buying goods and services,” he said.

For his part, MCL’s executive editor Bakari Machumu said the firm started the programme that observes leadership styles of different governments under different Heads of State, including the current administration that focuses on responsible governance.

He said the country offers numerous investment opportunities that investors must exploit for economic growth.

“As the government implements various infrastructure expansion projects, such as the construction of the Standard Gauge Railway, and the Hoima-Tanga Oil Pipeline, people need to look for areas where they fit in best,” argued Mr Machumu.

“It is imperative that people not only use existing opportunities but they should also ensure that they abide with the country’s laws and regulations,” he said.

Mr Machumu said the main objective of the programme is to enable business owners to know who are they, where they are and what they want to achieve in a certain timeframe, adding that it helps to build confidence of doing better both in the local and international markets.

He said one of the criteria for participation in the competition is to show the expansion strategies of a business for the next five years.

He noted that the government has made changes in procurement regulations, by allocating 30 per cent of the stake to small businesses, thus opening further opportunities for Tanzanians.

For his part, Dar es Salaam Stock Exchange (DSE) official Gastor Magombana said the bourse was introduced to so as to uplift Tanzanians, especially entrepreneurs, by enabling them to grow fast by creating avenues for raising capital, instead of struggling with expensive and outdated models.

He said DSE has introduced the SMEs window, namely, Entreprises Growth Market to enable small companies which are not fitting to the main market segment to raise capital through floating part of their shares.

“This window is an arrangement for helping small business owners to acquire funding without difficult criteria, like those in main market segment,” he said.

Mr Fred Chacha, the managing director of CF Builders, that was one of last year’s winners, said previously, they were afraid to participate and they did not believe that the programme was genuine, but after learning on how it operates, they participated and emerged among the winners.

KPMG representative Ketan Shah said the participation in the programme enables companies to build their capacities in doing business because they are able to network with various experts who have long experience of running businesses.

Azam Media sales manager John Mbele said, “Our goal is to enable businesses to promote themselves for free, which will enable them to grow faster.

Top100 SMEs Companies competition was launched in 2011. This year Bank M are among the sponsors.

Traders Vanish As EFD Grip Tightens

By Peti Siyame

Sumbawanga — Several shops whose operators don’t have Electronic Fiscal Devices (EFDs) in Sumbawanga Town in Rukwa Region have been closed.

The operation that kicked off yesterday morning was led by senior Tanzania Revenue Authority (TRA) officials, including the regional manager, Mr Fredrick Kanyilili and assistant manager (Inspection), Ms Amina Shamdas.

Yono Auction Mart officials were also part of the entourage. The ‘Daily News’ witnessed several traders abandoning their shops and fleeing at the sight of the group.

Mr Kanyilili told reporters that official letters had been circulated to traders, directing them to buy and use EFDs, setting a 14-day deadline that expired on August 23.

He explained that targeted traders were the ones whose annual sales exceeded 14 m/-, stressing that using the machines was compulsory and not optional.

The regional TRA boss pointed out that the crackdown against the culprits was sustainable, and would cover all districts in the region – Nkasi, Sumbawanga and Kalambo.

Ms Shamdas said traders who had fled would not be able to reopen them as they had been closed by Yono Auction Mart, adding that they faced fines ranging from 3.5m/- to 4.5m/- before resuming business.

Some traders appealed to the government for a grace period to buy the devices.

Tanzania

New Ticketing System Curbs Fraud on Rapid Transport System

Dar es Salaam Rapid Transit (Dart) project operators have managed to curb fare-related fraud and revenue loss thanks to… Read more »

12bn/ – Loan to Raise Tanga Fresh Fortunes

By Bernard Lugongo

Tanga — TANGA Fresh Limited, one of the country’s leading milk processing companies, is set to secure a 12 billion/- loan within the next one month, after repossessing its confiscated title deed following President John Magufuli’s order.

It was the outcome of his intervention in a five-year wrangle featuring Tanzania Revenue Authority (TRA), Azania Company and Tanga Fresh Limited. TRA had confiscated the title deed, demanding settlement of the outstanding 1.2bn/- capital gains tax.

It subsequently emerged, however, that Azania Company sold the industry to Tanga Fresh Limited before clearing outstanding capital gains tax to TRA. During his recent tour of Tanga Region, one of the highlights of which was laying a foundation stone for the company’s expansion, Dr Magufuli was visibly upset by the protracted wrangle.

He gave a five day-ultimatum to the Regional Commissioner(RC), Mr Martine Shigela and TRA, to give the title deed back to Tanga Fresh, to enable it use it as collateral for accessing loans for developing the company.

“I give you until Friday next week to give back the title deed … Tanga Fresh should not be punished over wrongdoing that it didn’t commit,” Dr Magufuli remarked in his August 6, 2017 order. RC Shigela said the President’s directive was implemented after three days of its issuance.

Speaking with the ‘Daily News’ yesterday, Tanga Fresh General Manager Michael Karata said repossession of the document had enabled them to process loans amounting to 11.9bn/-, from two sources of funds for the company’s expansion projects.

The two lenders are Dutch Oak Tree Foundation (DOTF) which will provide about 4.6 billion/- and NMB Bank will disburse the remaining 7.3bn/ “Within the next one to two months, we will have acquired the funds, thereby putting us in a good position to resume the implementation of the pending projects for the company’s expansion,” he said.

He noted that so far, the DOTF had disbursed part of the loan (about 1.6bn/-) and NMB gave 50 per cent of the sought amount. He said the company was grateful for the President’s visit and his swift decision to create an opening in the longrunning dispute.

“We promised the President that we will work hard to ensure that we gave dairy farmers a reliable market as he directed,” he said. During his speech at the company’s premises, Dr Magufuli hinted that the protracted wrangle might have been fu elled by competitors in the milk production industry in neighbouring countries.

He speculated that they may have been bent on sabotaging Tanga Fresh Company in order to turn Tanzania into a market for milk produced outside the country. “It’s irrational for us to remain a dump yard for products from outside the country; we must change,” the Head of State had emphatically remarked.

He noted that currently, the country had only two milk processing companies Tanga Fresh and Asas Diary, 15 others having collapsed. The Tanga Fresh management told the President that it planned to increase the production capacity to 120,000 litres per day from the current 50,000 litres, as it eyes investment capital of 26bn/- in future, up from the current 12bn/-.

Tanzania: Uber Kills Business, Claim Taxi Drivers

By Neema Nyerere

SOME taxi drivers in the city have expressed their frustration following the high picking of Uber commercial transportation services.

They told the ‘Daily News’ that Uber commercial transport services has posed a threat to their business since many passengers go for Uber instead of ordinary taxi. One of the taxi drivers at Samora Street, Post Office, Mr Omar Mohamed said that the number of people who ride on ordinary taxi has reduced since the introduction of Uber commercial services in the city.

He admitted that Uber charges lower compared to taxi. “We differ on price, our fellow charge lower compared to us, however, there are many reasons behind this matter, we charge higher because we are subjected to tax and many other contributions,” he said.

He added that ordinary taxi drivers charge 5000/- for a route from Post Office to Kariakoo while Uber charges only 3000/- for the same route. This attracts more passengers to Uber. “They don’t pay income tax, but we the taxi drivers do pay,” Mr Mohamed said.

Again, ‘Daily News’ spot survey reveals, because they mostly use private cars to do their business, the insurance they pay is much lower than what the commercial drivers pay. Another taxi driver at Posta mpya, Mr Joseph Sambara said for equal business platform Uber drivers should also pay tax as it is paid by ordinary taxi drivers.

“Today as we speak, Uber has killed taxi drivers’ businesses, we are not comfortable with them at all,” he said. When asked why not joining them, some taxi drivers said due to limited income the Uber drivers get one need to operate with a car that has less than 1,400cc engine above that is a loss.

Under Uber agreement, their drivers remit 25 per cent of their fare to the firm and they retain 75 per cent–meaning for every 100/- uber drivers retain 75/-. This 75 per cent Uber driver are retaining was what the ordinary taxi drivers are complaining for–that is not taxable.

When reached for clarification on the system that Uber drivers use to pay tax, the Tanzania Revenue Authority (TRA) Director for Taxpayer Services and Education, Mr Richard Kayombo said Uber is a registered company and that it pays tax like any registered company in the country.

He said TRA applies the normal system in collecting tax from Uber. “Uber is paying tax like any other company,” he said. Some passengers who use Uber services told the ‘Daily News’ that Uber services are affordable and fair.

“With Uber you can pay only 25,000/- from Airport to Mwenge, while the ordinary taxi at the same venue charge up to 40,000, which is unfair compared to the current state of the economy,” said Ms Anitha Bachu.

Mr Samson Samwel said it is safe to use Uber services because its drivers are traceable. “In case you forget anything in the car, you can trace them and get it back, but with our ordinary taxi, things are different,” he said.

He added that Uber drivers are on time and available everywhere hence very convenient urban transport. Uber, is a technology company that connects passengers and drivers. It began operations in Tanzania in March, last year.

Property Tax Defaulters Now Face 12 Per Cent Penalty

By Rosemary Mirondo

Dar es Salaam — Defaulters of property tax payment will now be fined a penalty of 12 per cent at the Bank of Tanzania’s (BoT) statutory rate.

This is after they failed to pay the taxes despite a month-long extension that ended on July 31.

Speaking on behalf of the TRA acting director for Tax Payer Services and Education, Ms Daina Masalla, told The Citizen that the interest will be charged to a compounding interest formula.

“We offered two extensions, one at the beginning of July and the second in mid-July which went until end of the month, and those who did not take advantage of the time will now have to pay interest also,” she said.

The tax was for the financial year 2016/17 and those who failed to do so will now face legal action and fines.

Electronic fiscal devices

In another development, Ms Masalla said that the Authority was preparing to inspect all petrol stations to determine those who have installed Electronic Fiscal Devices (EFDs) directly to fuel pumps.

This is after the government issued an ultimatum to the owners to have done so by end of July.

She said the inspection aims at finding out those who have installed the EFDs and those who have not so that appropriate measures including taking them to court would be taken.

“After the inspection and evaluation of the situation, we expect the government to make a decision based on the findings,” she said.

In another development, Tanzania Petrol Stations Operators Association (Tapsoa) general secretary Tino Mmasi said that petrol station owners were ready to install the devices, but the problem was that they were faced with a lot of challenges that interfered with their business.

Elaborating, he said when EFDs were introduced in 2014, they were did not know how they worked, this made them discuss with TRA. Both parties agreed to send representatives to Turkey to learn how the system worked. “About 60 to 70 per cent were able to use EFDs but the rest continued to face multiple challenges including breakdown of some of the devices in just a short time,” he said.

He said the findings from Turkey showed that traders in that country used full automated machines unlike their Tanzanian counterparts who were using semi automated machines that only record from the pump to TRA, while Turkey’s automatically recorded all the information during the purchase of petrol.

Meanwhile the Authority has given a 30-day ultimatum to owners of 84 vehicles to submit import and tax records documents over the vehicles.

The vehicles were imported between 2003 and 2004 and TRA suspects that they were brought to the country using dubious documents or clandestine ‘panya’ routes.

TRA has ordered the owners submit original documents.

Tanzania

Universities Cut Tuition Fees for New Academic Year

Prospective applicants for higher learning studies in the 2017/18 academic year have something to smile about as some… Read more »

Tanzania: Tanzania Slaps Acacia Mining With U.S.$190 Billion Tax Bill

By Allan Olingo

Tanzania has slapped Acacia Mining with a $190 billion tax bill, potentially escalating the dispute over royalties the government says it is owed.

The firm said it received a notice on the tax bill Monday from the Tanzania Revenue Authority (TRA) for historical corporate income tax, covering the last 17 years.

TRA claims Acacia, the biggest gold miner in the country, owes the government $154 billion from its Bulyanhulu mine and $36 billion from Buzwagi.

The government said the miner owes $40 billion in unpaid taxes and $150 billion in penalties and interest.

The London-listed company however disputes the assessments.

“The assessments are issued in respect of alleged under-declared export revenues, and appear to follow on from the findings of the First Presidential Committee announced on 24 May 2017 and the Second Presidential Committee announced on 12 June 2017. As we have stated previously, Acacia refutes each set of findings and re-iterates that it has fully declared all revenues,” it said.

Acacia has referred the disputes for international arbitration.

Last week, President John Magufuli threatened to shut down all gold mines in Tanzania if the mining firms fail to resolve the tax disputes.

In response to the tax bill, the Barrick Gold-owned company said it is considering all of its options.

Tanzania

Mines Closed After One Killed in Clashes

The death of a tanzanite miner at the Gem & Rock Venture Mine, which is bordered underground by CT Shaft of… Read more »

Why 2017/18 Fiscal Year Will Be Tough for TRA

Dar es Salaam — The Tanzania Revenue Authority (TRA) will be under intense pressure in the current financial year as it seeks to collect an amplified amount in tax revenue against a backdrop of missed targets in 2016/17.

The taxman collected a total of Sh14.4 trillion during the 2016/17 financial year.

Much as the money was 7.67 per cent higher than the Sh13.3 trillion which was garnered during the preceding year, it still fell short of the year’s collection target, TRA data show.

A total of Sh15.1 trillion was meant to be collected as tax revenue to partly finance the government’s Sh29.5 trillion-budget for the financial year 2016/17.

With funds from development partners becoming increasingly unpredictable, execution of some development projects suffered.

Presenting a report on the national economic survey for 2016 and the national development plan for the financial year 2017/17 in Parliament in June this year, the minister for Finance and Planning, Dr Phillip Mpango said while the government planned to spend Sh11.8 trillion on development projects in 2016/17, it managed to raise only Sh4.5 trillion as of April 2017 for that purpose. The poor performance, he said was attributed to delays in securing loans and grants due to prolonged negotiations with development partners and commercial institutions.

“Besides, interest rates rose during the period, forcing the government to defer borrowing. The rates of borrowing from international lenders rose to nine per cent from six per cent,” he said.

But against such a backdrop, TRA is now required to collect Sh17.1 trillion, which is Sh2 trillion more than what the taxman was meant to collect during the 2016/17 financial year and Sh2.7 trillion more than what it (TRA) actually achieved during the year. Similarly, development spending is also expected to increase slightly by 1.2 per cent from to Sh11.999 trillion.

This also comes against the backdrop of closure of a total of 7,277 businesses across the country between July 2016 and March 2017 even as the government says that TRA also registered a total of 224,738 businesses during the same period.

Attainable

But economists are of the view that the Sh17.1 trillion-target is practicable, saying the country’s business environment will gradually improve and thus create an enabling environment for the private sector to thrive.

“Had last year’s ways of doing things remained, I would not have been convinced that things would move, but after new measures were introduced in the 2017/18 budget, a lot of things have changed and will continue to change and the Sh17.1 trillion can be realised,” said Prof Humphrey Moshi of the University of Dar es Salaam in a telephone interview yesterday.

Prof Moshi’s arguments are based on a number of measures that the government has taken within the 2017/18 budget aimed at stimulating economic activities.

He is specifically happy with the government’s decision to scrap the annual motor vehicle licence fee and instead raising excise duty on petroleum products by Sh40.

“Before that, one could drive a vehicle with a fake registration sticker and avoid paying the fee, but now, there will be no avoiding the tax. You cannot drive a vehicle without refueling it. So, as you refuel it, you will be paying tax,” he said.

Besides, he said the government has also exempted VAT on importation of capital goods as way of reducing procurement and importation costs on machines and plants used in production. Similarly, it has zero-rate VAT on ancillary transport services associated with goods in transit as it seeks to attract more and more business to the Dar es Salaam Port.

“This was one of the reasons behind a drop a goods at the Dar es Salaam port. This is now bound to change,” he said.

The government, said Prof Moshi, is also determined to pay its various contractors and service providers to public schools, hospitals and security organs, among others.

“All these measures will stimulate economic activities. Besides, people have realised that President John Magufuli wants everyone to work hard and pay tax. You can see how people are complying with payment of Property Tax. I am convinced that the situation will be better this year,” he said.

According to the TRA director of taxpayer services, Mr Richard Kayombo, the tax body is currently undertaking various sensitisation programmes aimed at ensuring that businesses make use of EFDs effectively. Similarly, it hopes to collect more in Corporate Tax, with the deadline for last financial year collections ending on Saturday, July 15.

Yono Seizes Properties of 68 Billion/ – Tax Defaulters

Yono Auction Mart has seized properties worth 68.1bn/-, belonging to businesspeople who are yet to honour their tax obligations with the Tanzania Revenue Authority (TRA).

The properties were seized during an ongoing operation to crack the whip at tax defaulters, carried out in collaboration with TRA. Yono, who are auctioneers, debt collectors and commission agents were contracted by the tax watchdog to collect debts.

According to Yono Auction Mart Managing Director, Scholastica Kevela, her company was contracted by TRA to collect debts in Dar es Salaam, Coast, Njombe, Mbeya, Iringa and Zanzibar.

“We are firm and strong and we want to give assurance that we shall descend on all people who have failed to honour their tax obligations,” she said, adding that no stone shall remain unturned. She further advised Tanzanians to pay taxes voluntarily instead of waiting for unnecessary operations as through Tax, the country is able to attain development.

“I request all Tanzanians to support the efforts by President John Magufuli to bring development to the country by ensuring that all people are paying taxes so that social services can be availed to all,” she said.

In regards to reports circulating in the social media that some properties belonging to Lugumi Enterprises Limited were being held by Yono Auction Mart, Ms Kevela confirmed that the reports were true. “You heard of reports that we are holding some houses belonging to Lugumi.

I want to confirm that it is true because he is yet to honour his obligations amounting to 14bn/-. She named others who are yet to pay taxes as GM Dewji (1.8bn/-) and Mutluhan Construction Company Ltd (45bn/-).

According to her, those who are yet to clear their dues should do so within 14 days failure to which their properties will be auctioned.

Tanzania

Gold Regains Status As Tanzania’s Top Export

Gold has regained its prestigious position as Tanzania’s largest non-traditional goods export, thanks to a rise in value… Read more »

Put in Place Proper Mechanism On Uncollected Taxes, TRA Urged

By Faustine Kapama

Dodoma — The Controller and Auditor General (CAG), Prof Mussa Assad, has appealed to Tanzania Revenue Authority (TRA) to enhance debt management, enforcement and recovery mechanisms in order to collect all due taxes, having discovered uncollected tax of over 588bn/-.

Such mechanism, he said, would avoid long outstanding taxes in arrears from assessment made through the Selfassessment, Tax Investigation Department, Examination Unit and Tax Audit Unit.

“My review of Tax Investigation Register, Tax Arrears Register and other supporting documents noted uncollected taxes amounting to 588,833,422,160/-,”Prof Assad said in his Central Government Annual General Report 2015/16 financial year.

Out of such amount, he said, a sum of 70,974,430,676/- relates to Large Taxpayer Department, including an interest of 3,446,958,859/60, another sum of 92,025,604,941/- relates to Tax Investigation Department and 425,833,386,543/07 relates to Domestic Revenue Department for 10 tax regions. The amount, according to him, was inclusive of interests computed on four tax regions amounting to 31,002,818,053/75 and unsupported tax recoveries of 9,451,269,539/73.

The regions are Kilimanjaro, Temeke, Mbeya, Dodoma, Mtwara, Iringa, Morogoro, Shinyanga, Tanga, Ilala, Mwanza and Kinondoni.

“Presence of such taxes in arrears raises questions as to why the Authority failed to collect assessed taxes on time or enforce recovery measures whenever possible as the law requires,” the CAG said in his report presented before the National Assembly here on Thursday. In his view, he said, inadequate debt recovery and enforcement mechanisms, especially in TRA Regional Offices contributed significantly to the existence of long outstanding taxes in arrears.

“This amiss signifies that there is room for improvement in debt management and recovery mechanisms,” he said.

Prof Assad further pointed out that his review of the sample of taxpayers files and other relevant documents, such as taxpayers returns of income, VAT special relief beneficiary records, VAT returns and declarations filed by the taxpayer, noted underassessment of taxes payable by 7,534,260,240/-.

Out of that tax liability, he said, a sum of 1,309,978,057/42 relates to a sample of six VAT return reports at Large Taxpayer Department and 6,224,282,182/36 for tested taxpayers from 12 tax regions under the Domestic Revenue Department.

He said that under-assessment was attributed to inadequate reviews and analyses of taxpayers’ information by the Authority and at times failure to collate self-assessed taxable income in the Final Returns of Income, VAT returns and Declarations filed by taxpayers with that of TRA records.

“My review, therefore, noted that self-assessment returns were not well reviewed which, in turn, offers opportunity for collusive practices and abuse of self-assessment system by unscrupulous persons. Hence, denying the government its rightful revenue,” the CAG said.

Prof Assad suggests, therefore, for strengthening audit checks and investigations to reduce fictitious input-tax claimants from the VAT network and curb under-declarations in the income tax returns. He further recommends for investigation on all identified under-assessments and then recovers all payable taxes together with interest and penalty thereof as required by the tax laws.

Tanzania: Govt Asks for Extradition of Former Senior Banker

Photo: The Citizen

Stanbic Bank Tanzania (file photo).

Dar es Salaam — Tanzania has asked Kenya to extradite former Stanbic Bank CEO Bashir Awale to face charges in the $600 million government bond bribery scandal, it has emerged.

Attorney General George Masaju has reportedly sought help from his Kenyan counterpart, Mr Githu Muigai, to bring back Mr Awale for questioning over the bribery scandal that rocked the final years of Jakaya President Kikwete’s government.

If extradited, Mr Awale will likely be joined in the case that has seen former Tanzania Revenue Authority (TRA) boss Harry Kitilya and two other prominent individuals charged and remanded since April, last year. Mr Kitilya, former Miss Tanzania Shose Sinare and Mr Sioi Sumari, all former officials of Stanbic bank, are languishing in jail awaiting hearing of their application for bail.

The three have been charged with money laundering, forgery, abuse of position, corruption, obtaining advantage and transfer of proceeds.

Yesterday, Kenyan media reported that President John Magufuli’s government wants Mr Awale to answer questions over the transaction of the deal in which he is said to have played a key role.

According to an investigation in the UK by the Serious Fraud Office, Mr Awale, Mr Kitilya and Ms Sinare were key players in pushing the deal through, leading to a $6 million (Sh12 billion) bribery scam.

Mr Awale was deported to Kenya soon after the 2015 General Election for allegedly being in the country illegally.

He was also accused of involvement in Tanzanian politics, and was said to be one of the chief behind-the-scenes strategists for the then Chadema presidential candidate, Mr Edward Lowassa.

Mr Awale had lived in Tanzania for many years and at one time served as Barclays Bank manager.

According to reports from Nairobi, Kenya’s Ethics and Anti-Corruption Commission (EACC) is assisting Tanzanian authorities to have a Kenyan at the centre of a Ksh600 million ($6 million) bribery scandal in Tanzania arrested and questioned.

President Magufuli’s administration has sought Kenya’s help to have Mr Awale, a former bank official, record a statement.

Mr Masaju wrote to Mr Muigai under mutual legal assistance (MLA) asking to have Mr Awale provide evidence two years after he was deported.

Mr Awale is accused of organising the money as an inducement to have state officials favour two banks when Tanzania floated an international bond in 2012.

“We have received the MLA and are working closely with the State Law office in line with the request. A team of investigators from Tanzania and Kenya has been put in place to implement the request,” EACC CEO Halakhe Waqo said.

The EACC boss, however, did not give details on the timelines of their work and if they had summoned the suspect.

Mr Awale was arrested in December 2015 and deported over claims of illegal stay. He was said to have been among the presidential campaign team members of former Prime Minister Edward Lowassa who lost to Magafuli.

Dar es Salam petitioned Nairobi to have Bashir record a witness statement outlining his alleged involvement in the scam. The Prevention and Combating Corruption Bureau (PCCB) seeks evidential materials that will assist in investigations and securing convictions, according to media reports in Kenya.

He is accused alongside former TRA Commissioner General Mr Kitilya, former bank managers Ms Sinare and Mr Sumari. The three

Mr Awale was Stanbic Tanzania chief for seven years and was fired on August 19, 2013 for failing to co-operate in investigations. The bank later announced that he had left voluntarily.

“In order for the information and evidence requested to be admissible in the courts of Tanzania, its requested that any written statement or deposition be signed at the conclusion of each page and after the last word,” the MLA dated August 15, 2016 reads in part.

The government needed to raise funds for infrastructural requirements with Standard bank and Stanbic getting a mandate to raise the funds. During negotiations, the two banks quoted a combined fee of 1.4 per cent of gross proceeds raised.

In September 2012, Stanbic proposed the fee be raised to increase to 2.4 per cent, with the extra 1 per cent being paid to a ‘local partner’, a Tanzanian company called Enterprise Growth Market Advisors (EGMA).

The chairman and one of the directors of EGMA was Harry Kitilya, then TRA commissioner, while the managing director of EGMA was Dr Fratten Mboya, who was CEO of Capital Markets and Securities Authority (CMSA) between 1995 and 2011, and now deceased.

The room for conflict of interest was evident but Stanbic never addressed the issue. “It also appears that the Mr Awale and Ms Sinare intended the 1 per cent fee promised to EGMA to induce the first suspect (Harry Kitilya) and other members of the government to show favour to Stanbic and Standard Bank’s proposal.

EGMA opened a bank account with Stanbic to facilitate its activities in September 2012.”

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