Tanzania link in Sh330bn UK scam

Dar es Salaam. Two fugitives wanted in the UK over 109 million pounds (over Sh330 billion) fraud are said to be in Tanzania where they established a plant leasing company in Dar es Salaam.

Foreign media reports have revealed that the suspects, father and son from Scotland, escaped after being implicated in a multi-million pound tax fraud.

They have been identified as Geoffrey Johnson, 72, and his son, 48-year-old Gareth. They are wanted back home where international warrants of arrest have been issued against them after they absconded their trials in 2013 and 2014.

The taxman is on the duo’s trail over the 109m pounds debt following a recent court ruling that would pile pressure on their arrest and extradition once caught.

Authorities in Dar es Salaam were however in the dark over the reports, telling The Citizen that they would follow up the matter once an official order is lodged with them.

Chief of Interpol National Central Bureau, Mr Gustav Babile, said his office was yet to hear the reports from UK. “We do not have such information and are hearing it from you now. We will let the public know of any developments should there be one,” he said in a telephone interview.

Scottish media reported that the fugitives who established an equipment hiring business in Dar es Salaam were traced to Iringa town where they were living a quiet life. When contacted, the Iringa Regional Police Commander Peter Kakamba said he was also not aware of the development. 

Geoffrey and Gareth Johnson, from Forfar, were jailed in their absence and now risk and additional 14 years to their respective terms should they fail to clear the huge debt immediately, the Daily Record newspaper reported. According to the newspaper, the Johnsons were part of an 18-strong crime gang who stole £20m in a mobile phone VAT carousel fraud.

Gareth who ran the money-laundering arm of the operation, was jailed for 12 years and his father for 10.

Gareth’s brother Craig was jailed in 2008 for his part in a similar scheme that netted him millions of pounds.

Last week, a court ordered the father and son to pay the huge sum or a default prison term of 14 years will be added to their sentences.

The pair run the Johnson International Group – a plant hire company that employs 125 staff based on the Kipawa Industrial Estate, in Dar Es Salaam. The company is shown as having struggled to pay workers’ salary arrears, with employees lodging a complaint with the regional commissioner in 2014.

One of the Johnsons’ foremen, Leonard Lukule, admitted the company was in “bad financial shape” as it’s not getting the contracts it used to after a recent project. He said: “We did not get any other contracts, thus being forced to send the workers on unspecified leave.”

The Johnsons are said to have left Dar Es Salaam for Iringa when the row over salaries began. According to the Daily Record, sources in Dar es Salaam say the Johnsons own a number of sprawling developments across Tanzania including clubs and restaurants.

They added: “Geoffrey and Gareth both stay in huge houses in Iringa – there aren’t too many rich white people there so everyone knows them. “I understand the workforce are still owed quite a lot of money. The two men left Dar Es Salaam and set up again in Iringa to start afresh.”

The Johnsons led a luxury lifestyle in Forfar before they fled the country. The family used to live in 10-bedroom Turin House, which was recently bought for £1.2million. The huge mansion sits in 21 acres with its own private pool. It is now a 5-star hotel run by a reputable company unconnected to the Johnsons.

One Glasgow builder who worked on the Forfar estate said: “It was unbelievable how much money they had.

“There were Clive Christian fittings everywhere and Gareth’s fleet of cars was crazy.

 “He bought top of the range Bentleys, Ferraris and Porsches and had them parked everywhere. I don’t know how he chose which one to drive. When they weren’t using their cars they were getting flown around in their helicopter. It was a different world.

“Whenever we asked them how they made their money they quickly changed the subject. We all thought they were up to no good, but no one questioned it - they each had about five mobiles which were constantly ringing.”

The tax probe led to four criminal trials between 2012 and 2014 and stretched across Andorra, Dubai, Hong Kong, USA, Switzerland, Portugal and the UK.

They were central figures in an 18-strong gang who came from Cheshire, East Sussex, Greater Manchester, Lancashire, North Wales, Staffordshire, Scotland and Spain.

They were given jail sentences totalling 135 years.

Johnson jnr ran Tectonics Holdings which played an integral role in the fraud as the money laundering arm of the operation through personal UK and offshore accounts.

A third Forfar man, Albert Amritanand, was also part of the gang and was sentenced to five years in jail in 2013.

He paid back half-a-million pounds after a similar confiscation order was imposed last year.

Kevin Newe is assistant director with HMRC’s fraud investigation service.

He said: “Confiscation orders totalling more than £114million have now been made in this case.

“These latest rulings show that criminals may think they can escape justice by fleeing the country, but our investigations to reclaim their ill-gotten gains continue.

“We are determined that crime gangs such as this one should be prosecuted and then made to repay their criminal profits.”

Nick Price of the Crown Prosecution Service said: “The orders again illustrate that we will work closely and tenaciously with our criminal justice partners to go after the assets of those who engage in large scale fraud, even in the case of those who wilfully abscond from the proceedings.

“Our work does not stop here. We will continue to engage with our partners in the UK and around the world in working towards the realisation of the assets in this order. We are determined that crime will not pay.”