Mkulo denies having hand in fraud dealings by ex-TRA boss Kitilya
What you need to know:
The ex-Finance minister, who is the first prosecution witness, told the court that in 2011/12 there was budget shortage amounting to $800 million, which resulted into the government to search for a loan to cover the gap
Dar es Salaam. Former finance minister Mustafa Mkulo yesterday distanced himself from the alleged $6 million (Sh12 billion) bribery involving payment of a loan to government through Stanbic Bank Tanzania during the 2011/12 financial year.
The former minister told the High Court in Dar es Salaam that he had already left the ministry when the alleged fraud and money laundering offences were committed.
He was testifying for the prosecution when he appeared before the High Court’s Corruption and Economic Crimes Division.
The accused in the case are former Tanzania Revenue Authority (TRA) Commissioner General Harry Kitilya, former Miss Tanzania Shose Sinare and Sioi Solomon, who worked with Stanbic Bank Tanzania. The other two are officials from the ministry of Finance -- Bedason Shallanda and Alfred Misana.
Mr Mkulo told the court that by the time he left the ministry in May 2012, the $600 million loan that is at the centre of the bribery case had not been fully processed.
He said the Prevention and Combating Corruption Bureau (PCCB) called him for interrogation about the loan in 2016.
That was when he came to know that the $600 million loan was issued, but with a facilitation fee of 2.4 per cent, instead of the agreed 1.4 per cent. The former minister told the court this was huge.
The former minister said he had received a letter recommending that Stanbic Bank Tanzania in collaboration with Standard Bank of UK were ready to provide $550 million loan with an interest of 6.5 per cent and facilitation fees of 1.4 per cent, to cover a budget deficit. He said he directed the permanent secretary to send it to the commissioner of policies for analysis, before presenting to the Tanzania Debt Management Committee for further processes.
Mr Mkulo is the first prosecution witness. The prosecution has put together a total of 54 witnesses, and 218 exhibits as it seeks to make a waterproof case against the former TRA boss and his co-accused. They have all denied the charges.
