Kafulila’s joy after praise by Magufuli

Kigoma. Former Kigoma South MP David Kafulila has said he feels vindicated after President John Magufuli hailed his contribution to the unearthing of the Tegeta escrow scandal.

President Magufuli commended Mr Kafulila in Nguruka Township, Uvinza District, when addressing a rally on his way to Kaliua, where he was scheduled for opening a road project. “Before I finish my speech it wouldn’t be wise if I don’t recognise the role played by Mr Kafulila.

Despite his being mocked and called names in Parliament, he stood up to ensure the government holds accountable those implicated in the Tegeta escrow scandal,” said the President, adding: “those, who likened Mr Kafulila to a monkey they should know that they are the real monkeys now.”

Speaking to The Citizen later yesterday, Mr Kafulila said he felt happy that the head of the state had acknowledged his contribution to the country. Mr Kafulila, who was defeated by Ms Hasna Mwilima (CCM) in the 2015 General Election, said he would continue to be in the forefront, when it came to fighting against corruption.

“When it comes to fighting corruption there is no politics. We need to join forces if we want to succeed in the fight against the vice,” said Mr Kafulila. He pointed out that he was supporting the President in the fight against corruption and impunity, but was for establishing strong investigation and prosecution institutions to increase efficiency in the graft war.

Speaking to Nguruka residents, the President said those, who mocked and likened the former MP to a monkey for uncovering the corruption scandal, pitting the Tegeta Independent Power Limited (IPTL) were the real monkeys.

Mr Kafulila raised the issue in Parliament a few months after The Citizen exposed the controversial acquisition of IPTL. He and other MPs demanded thorough investigation into $122 million (Sh201 billion) released from an escrow account and paid to Pan African Power (PAP) Solutions Limited.

Mr Kafulila accused PCCB of failing to take appropriate action against officials involved in the saga even if the corruption watchdog had enough evidence.

He also accused top government officials of sharing the escrow money and swore that the matter would not be swept under the carpet. “I wonder what is wrong with PCCB because I’m sure they have all the evidence on the matter…this scandal is bigger than the EPA (External Payment Arrears) scam,” he pointed out. “We’re not ready to see all this money ending up in the pockets of a few officials.”

Mr Kafulila accused the then Attorney General Frederick Werema of being one of the top officials, who had facilitated the acquisition of IPTL. He went on to add that Mr Werema was among the bigwigs, who pressurised the Bank of Tanzania (BoT) to release Sh201 billion from the escrow account.

During the heated exchange of words, however, Mr Werema labelled him “a monkey”, while he hit back by labelling him “a thief”.

Key suspects in the infamous Tegeta escrow scandal, Mr Harbinder Singh Sethi and Mr James Rugemalira, were arraigned at the Kisutu Resident Magistrates’ Court in June, charged with occasioning a loss of more than Sh358 billion to the government.

The two jointly faced six charges of economic sabotage, forgery, impersonation, running a criminal syndicate and obtaining money by false pretences and causing a substantial loss to the government.

They appeared before Kisutu Principal Resident Magistrate Huruma Shaidi, but were not required to enter a plea as the court lacked jurisdiction to hear the case. The accused were denied bail and were taken to Segerea Prison until July 3, when the matter came up again for mention.

It was the first time for the two, who were at the centre of one of Tanzania’s monumental scandals in recent history, to appear in court, almost three years after Parliament recommended to be held accountable.

Their arraignment was seen as a bold move by the government to bring to justice those implicated in grand corruption scandals.

Mr Sethi and Mr Rugemalira were named in 2014 in Parliament as having overseen a plan, which saw more than Sh300 billion siphoned from an IPTL and Tanzania Electric Supply Company (Tanesco) joint account in the (BoT). Part of the money, according to investigation, was issued to politicians, government officials, some judges and religious leaders, among others.

Parliament pushed for the resignation of Mr Werema as Attorney General, Energy and Minerals minister Sospeter Muhongo, while President Jakaya Kikwete fired the then Lands, Housing and Human Settlements Development minister, Prof Anna Tibaijuka, who was shown as having received Sh1.6 billion from the funds. Several other senior government officials in various ministries are facing charges over their role in facilitating the matter or receiving money from the escrow proceeds.

They are faced with economic sabotage charges relating to causing the government a loss of $22,198,554 and Sh309,461,300,158. Mr Faraja Nchimbi and Paul Kadushi led the prosecution.

Mr Rugemalira, who owned 30 per cent stake in IPTL and Sethi who is the executive chairman of Pan African Power Solution (PAP) committed the offence between October 18, 2011 and March 19, 2014. The suspects reportedly hatched the plot in between trips to Kenya, South Africa, India and Tanzania to falsely swap shares and for PAP to acquire IPTL. They then were said to have colluded with government officials in running the illegal syndicate with an intention of profiteering from their collusion. The prosecution accused Mr Sethi of forging a company registration certificate in October 2011 and lying that he was a Tanzanian resident living in Masaki area while knowing it was not true.

Both the accused were said to have illegally withdrawn $22,198,554.60 and Sh309.461 billion from the escrow central bank account. The offences were committed between November 28/29, 2011 and January 23, 2014 at the Stanbic Bank headquarters in Kinondoni. The two are still in custody after the court denied them bail.