Dar es Salaam. Three more top government officials were charged yesterday with dishonestly receiving over Sh2 billion from Mr James Rugemalira of VIP Engineering--the company that pocketed over Sh100 billion after selling its 30 percent stake to Pan Africa Power Solutions Tanzania Limited(PAP).
The money is believed to be part of the Tegeta escrow billions that were controversially paid to PAP between November and December 2013 after the company claimed it had legally bought 70 percent of Independent Power Tanzania Limited(IPTL) from a Malaysia-based firm, Mechmar, at a cost of $300,000 (Sh510 million).
After claiming it had legally acquired IPTL’s 70 percent shares in 2010, PAP bought the other 30 percent owned by VIP at a cost of $75million in 2013.
An escrow account is a temporary pass-through account held by a third party during a transaction between two parties. After Tanesco disputed IPTL’s capacity charges, the two parties filed for arbitration at the International Centre for Settlement of Investment Disputes in Washington in 2006.
It was agreed then that the Tegeta escrow account be established at the Bank of Tanzania and all disputed payments would be deposited in it pending the outcome of the arbitration. At the time the billions were withdrawn from the account, it was supposed to have about $200 million (Sh320 billion at the prevailing exchange rate).
Yesterday, three public servants who were paid about Sh2 billion by Mr Rugemalira were charged at the Kisutu Resident Magistrate’s Court with unlawfully receiving the cash via their bank accounts. Those charged are Mr Steven Urassa, a senior legal officer at Tanesco, Mr Julius Angello, the director of finance at the Bank of Tanzania (BoT) and Mr Kyabukoba Mutabingwa, a tax exemption manager at TRA.
Yesterday’s move brings to five the number of people charged over the scandal that has shaken President Jakaya Kikwete’s administration.The accused shrugged off the charges before the Kisutu Resident Magistrate’s Court. The charging of the trio comes barely three days after two senior public servants appeared in the same court on similar charges.
The director of legal services at the Lands ministry, Mr Rugonzibwa Mujunangoma, and Mr Theophillo Bwakea--a principal engineer at the Rural Energy Agency (REA)-- stand accused of corruptly receiving nearly Sh500million as a reward for favourably handling the affairs of IPTL, the company that sold power to Tanesco.
A prosecutor from the Prevention and Combating of Corruption Bureau (PCCB), Mr Bernard Swai, told the court yesterday that Mr Mr Mutabingwa faced four counts related to corruptly receiving Sh2.1 billion from the Tegeta account through his account at Mkombozi Bank. The accused allegedly received the payment from Mr Rugemalira as a reward for representing TRA in court.
Reading the charges before Resident Magistrate Devotha Kisoka, the prosecution said Mr Mutabingwa--who faces four counts dating between January and November 2014 at Mkombozi Bank--received Sh2,102,100,000 through his account number 00110202613801 from the escrow account.
The accused allegedly received the money from Mr Rugemalira as a reward for representing TRA and Mabibo Beer Wines and Spirits in court. The firm is owned by Mr Rugemalira. The accused denied the charges and were remanded on failing to meet bail conditions requiring him to deposit Sh1 billion cash or title deed of immovable properties. The case will come up for a preliminary hearing on January 29.
In another session before Resident Magistrate Janeth Kaluyenda, the prosecution alleged that Mr Urassa obtained Sh161,700,000 on February 14, 2014. The accused is said to have received the money from Mr Rugemalira as a reward for representing Tanesco and other related companies that entered into a contract with the electric company.
Mr Angelo has been charged with one offence--corruptly receiving Sh161,700,000 through his account number 00120102646201 at Mkombozi bank on February 6, 2014.
The Citizen
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