Former President Benjamin Mkapa opens up on EPA scandal in ‘My Life, My Purpose’

Dar es Salaam. Tanzania’s former president Benjamin William Mkapa has opened up on the EPA scandal in his book ‘My Life, My Purpose’ saying that one of his biggest regrets as President was to allow people swindle money through the External Payment Account (EPA).

The former president says that he was against the deal but was convinced by the former Bank of Tanzania (BoT) governor Mr Daudi Balali.

“I was against the deal but BoT governor (by then) convinced me by arguing that the money which will be collected will help to fund the ruling party’s campaigns,” writes Mr Mkapa in his memoirs.

The memoir which was officially launched today November 12 in Dar es Salaam by President John Magufuli, is now available in Book stores across the country.

A financial audit of the Central Bank of Tanzania carried out by Ernst and Young (an international firm) revealed that more than Tz Sh133 billion (approximately € 70 million) were siphoned off from funds intended for external debt payment (External Payment Arrears account, or EPA account).

The money was used to make illegal payments to about 20 national and foreign private enterprises.

Some of the businesses were fictional while the others belonged to prominent business men and government officials.

President of Tanzania, Jakaya Kikwete dismissed the Central Bank Governor, Daudi Ballali on 9 January 2008.