DPP orders further investigations into ex-Rahco officials’ case

Dar es Salaam. The Director of Public Prosecution (DPP) has ordered further investigation into a case in which former officials of Reli Assets Holding Company (Rahco) are charged with causing Sh 1 billion loss to the government.

Former Rahco Director General, Mr Benhard Tito, and two others are charged with conspiracy and abuse of office over transactions related to the upgrading of the Central Railway Line.

He is charged along Mr Kanji Muhamdo Mwinyijuma, a businessman and Emmanuel Simforian Massawe, who is Rahco Company secretary.

On Monday, prosecution from the Prevention and Combating of Corruption Bureau (PCCB) Maghela Ndimbo informed the Kisutu resident magistrate Thomas Simba that the DPP has directed further investigations to strengthen his case.

The case was adjourned to June 5.

The accused were arraigned in March last year. Prosecution allege that on February 27, 2015, Mr Tito abused his position by procuring Rothschild (South Africa) Proprietary Limited.

According to the prosecution, such company was procured as transaction advisor for the project to upgrade the central railway line corridor in Tanzania by a single source method without prior approval of Rahco tender board in violation of the Procurement Act.

Eng Tito and Massawe are also alleged to have abused their positions by signing a letter on the appointment of the South African company and failure to submit consultancy services contract between the company and Rahco to the Attorney General (AG) for vetting.

They are also accused of signing the consultancy agreement and failure to submit copies to the Attorney General, Controller and Auditor General, Internal Auditor General and Tanzania Revenue Authority (TRA).

It was further alleged that all the three accused persons procured consultancy services from Rothschild (South Africa) Proprietary Limited, which was not rendered, thereby causing loss of US dollars 527,540 which was paid as advance.

Mr Tito was charged with additional count of allegedly awarding China Railway Construction Corporation construction work of 2 kilometres of Standard Gauge railway line at Soga worth US dollars 2.3 million (about Sh5billion) without approval of Rahco tender board.