UK transfers Sh14bn fine: envoy

Dar es Salaam. The British High Commissioner to Tanzania, Ms Diana Melrose, yesterday confirmed that the UK has transferred  to the Tanzanian government $7 million (over Sh14 billion) the Standard Bank paid in fine as a result of its failure to prevent bribery in Tanzania.

A London court in November last year had ordered the bank to pay the fine in the UK’s first deferred prosecution agreement (DPA) since it was established in English legal system in February 2014. 

The bank pleaded guilty of failing to stop its then Tanzania branch -- Stanbic Bank, which in March 2013 paid a bribe amounting to $6 million, equivalent to over Sh12 billion, Tanzania government officials through a local company, EGMA, to enable Stanbic/Standard Bank to get favour as the lead bond executioners worth $600 million.  

“UK has transferred to Tanzanian government $7 million fine the Standard Bank paid for failing to prevent the EGMA bribery,” 

Ms Diana Melrose, The British High Commissioner to Tanzania

As a penalty, the Bank agreed to pay $32 million in fines, including the $6 million, plus another $1 million interest to the government of Tanzania. “UK has transferred to Tanzanian government $7 million fine the Standard Bank paid for failing to prevent the EGMA bribery,” Ms Melrose posted on her twitter account yesterday. 

The then Stanbic managing director, Mr Bashir Awale, who was later relieved of his duties, and Ms Shose Sinare, the bank’s corporate affairs official, who had later resigned, were behind  the dubious payout arrangement. The chairman of the EGMA is former commissioner general of Tanzania Revenue Authority (TRA) Harry Kitilya. 

Mr Kitilya, Ms Sinare and another former Stanbic employee, Mr Sioi Sumari, are currently facing court charges in connection with the case. Efforts by The Citizen to reach the minister for Finance, Dr Philip Mpango’ to confirm receipt of the funds did not bear fruits.