Ex-Tanesco MD and wife hauled to court

Dar es Salaam. Former Tanzania Electric Supply Company (Tanesco) managing director William Mhando was yesterday charged with abuse of office, almost two years since he was sacked. Mr Mhando appeared before the Kisutu Resident Magistrate’s Court along with his wife, Eva, and three other former Tanesco officials – principal accountants France Mchalange and Sophia Misidai and supplies officer Naftali Kisinga. They faced six counts, including abuse of office, forgery and obtaining money by false pretence.

They denied all charges and Resident Magistrate Frank Moshi released them on bail until June 13 when their case will come up for preliminary hearing.

Earlier, Mr Peter Swai of the Prevention and Combating of Corruption Bureau (PCCB) told the court that on diverse dates between April 1 and December 31, 2011 at Tanesco headquarters in Dar es Salaam, Mr Mhando abused his position by failing to declare his interest in Santa Clara Supplies Company Limited, whose directors are his wife and children.

Mr Swai said this led to the firm being awarded a Sh884,550,000 tender to supply Tanesco with stationery in violation of the public utility’s code of ethics and conduct and the Public Leadership Code of Ethics Act.

It was also alleged that between January 6, 2011 and July 30, 2011, at unknown places within the city and with intent to defraud, Ms Eva Mhando forged an audited financial report of Santa Clara Supplies Company Limited.

The court heard that on August 9, 2011, Ms Mhando forged a share transfer certificate purporting to show that she had transferred 200 of her 10,000 ordinary shares in Santa Clara Supplies Company Limited to one Eveta John Shing’oma.

The prosecution further alleged that on August 5, 2011 at Tanesco headquarters, Ms Eva Mhando presented to the secretary Tanesco Tender Board a forged audited financial report of Santa Clara Supplies Company Limited for 2007/8. The financial results were purportedly audited by Finx Capital House.

Mr Swai said that between April 1, 2011 and October 31, 2011, Ms Mhando, being a director of Santa Clara Supplies Company Limited, obtained Sh31,747,000 from Tanesco for the supply of office stationary after submitting false documents, which were the forged audited financial report and a “list of major contracts within two years from 2011” to the Tender Board secretary.

This was meant to deceive Tanesco that Santa Clara Supplies Company Limited met the criteria for a tender to supply office stationary and printing and computer consumables for the year 2011.

It was alleged that Mr Mchalange, Ms Misidai and Mr Kisinga, who were also members of the Tanesco tender evaluation committee, on October 17, 2011 abused their positions by presenting false information to the Tender Board.

The information purported to show that Santa Clara Supplies Company Limited was a responsible and qualified bidder for the tender, leading to the award of a lucrative contract to supply stationary and office consumables.

Mr Mhando was suspended on July 15, 2012 to pave the way for an investigation into allegations of embezzlement and abuse of office.

The Tanesco board of directors said Mr Mhando faced serious allegations to warrant his suspension and an investigation.

“After lengthy discussions, the board has resolved that, among other things, a through investigation should start as soon as possible because the allegations are serious. The suspension is in line with the country’s labour laws,” the board said in a statement.

Also suspended were three other senior officials – Deputy Managing Director Robert Shemhilu, Chief Finance Officer Lusekelo Kassanga and Senior Manager (Procurement) Harun Mattambo.

Mr Mhando’s suspension came two months after he vowed he would not resign until it was proven he was involved in the impropriety mentioned in a report of the Controller and Auditor General (CAG).