Dar es Salaam. As opposition party Chadema distances itself from allegations of misappropriation of contributions raised for its chairman, Mr Tundu Lissu, sources have told The Citizen's sister publication Mwananchi, how the funds were allegedly distributed among party operatives.
On Friday, January 29, 2026, members of Mr Lissu’s family said senior party leaders should not be implicated in the controversy, insisting that only a few lower-ranking members acted contrary to agreed arrangements.
A day earlier, on January 28, 2026, the Arusha Regional Police Commander, Mr Justine Masejo, announced the arrest of Mr Fredrick Mbwambo over allegations of misappropriating funds collected to support Mr Lissu.
Mr Masejo said Mr Mbwambo was detained on January 27, 2026, following complaints lodged by Mr Lissu’s brother, Mr Alute Mughwai, who reported that some of the contributions had been mishandled.
When contacted yesterday, January 30, 2026, Mr Masejo said investigations were ongoing.
Although police did not disclose the amount allegedly misappropriated, sources told Mwananchi that of the Sh41 million raised, Sh22 million was handed to Mr Lissu’s family, while the whereabouts of the remaining Sh19 million remain unclear.
Mr Vincent Mughwai, Mr Lissu’s younger brother, said the fundraising drive—organised by Chadema youth members and friends to support Mr Lissu—was coordinated by Mr Mbwambo, who is currently in police custody.
How the funds were distributed
A reliable source said the campaign, dubbed Funga Mwaka na Tundu Lissu, was managed by Mr Mbwambo and a small group of party operatives whose identities have been withheld, as they are said to reside in a neighbouring country.
The campaign was promoted through social media platforms during the final week of December 2025. On the night of December 31, 2025, organisers announced that Sh26 million had been raised. However, records later showed that the total amount collected was Sh41 million.
After the campaign, Sh22 million was handed over to Mr Mughwai. Suspecting discrepancies, he reviewed transaction records and established that the amount collected exceeded what he had received.
It is alleged that Sh6 million was transferred to a mobile number registered in a neighbouring country, reported to be Nairobi, Kenya, while Sh2 million was sent through a Tanzanian mobile number.
In a statement, Mr Masejo said:
“Preliminary investigations show that funds were collected through two different mobile numbers belonging to separate companies, one in Tanzania and another in a neighbouring country.”
Further allegations indicate that Sh700,000 was sent using the same channel through which the initial Sh2 million was received. Following police intervention, the Sh2 million was returned to Mr Mughwai’s account. Another Sh3 million was reportedly transferred to a separate Tanzanian mobile number. These transactions form part of the funds currently under investigation.
Chadema responds
Meanwhile, Chadema said all contributions for Mr Lissu were coordinated through Mr Mughwai’s phone number and were neither received nor handled by the party secretariat or any party official.
"There have been misleading reports circulated by ill-intentioned individuals linking party leaders to alleged mismanagement of recent online fundraising for Mr Lissu. We urge Tanzanians and the international community to disregard these false claims, which are intended to tarnish the party’s image and its leadership,” said Chadema Director of Communications and Publicity, Ms Brenda Rupia, in a statement issued on January 29, 2026.
Ms Rupia added that Chadema upholds principles of integrity, transparency and ethics, and does not permit its name or leaders to be used in activities that contravene the law or established procedures.
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