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Fraudulent tour operators exposed in payment system
What you need to know:
- Cybercrime has infiltrated Tanzania’s government payment system, with unscrupulous tur operators using stolen payment cards to make fraudulent transactions
Dar es Salaam. Cybercrime is posing a significant threat to the government’s payment system as unscrupulous tour operators use fraudulent payment cards to make payments.
Sources say the racket remains shrouded in camouflage for some time as the victimised government institutions choose to suffer silently in a bid to safeguard their reputation.
However, the latest incident to rock the Government Payment System (GePG) where dishonest tour operators are allegedly to have made transactions worth more than $1 million through fraudulent cards, has compelled the victim to break the silence.
The ministry of Finance has written a letter to Tanzania Association of Tour Operators (Tato) complaining that some unscrupulous Tanzanian tour operators have been making payment transactions using fraudulent cards.
Ministry’s Permanent Secretary, Dr Natu Mwamba in her letter to Tato with reference number MG.233/261/01’A’, dated 4 September 2024, the government also compiled the ‘list of shame’ of the tour operators.
Dr Mwamba said that the dishonest tour operators in the list of shame, have made transactions worth more than $1 million, without specifying the period under review.
Dr Mwamba expressed concern that these fraudulent activities undermine efforts to promote tourism and simplify government payments.
She warned that unchecked, such practices could damage the tourism industry’s reputation and harm the country’s economy.
The misuse of stolen payment cards could also lead to international financial institutions reconsidering their cooperation with Tanzanian banks, potentially reducing investment and affecting economic growth.
Additionally, fraudulent activities could deter foreign banks from processing transactions in Tanzania, impacting visa and tourism services.
The ministry also cautioned that tourists might choose other destinations, depriving the country of foreign currency.
Dr Mwamba urged Tato to advise its members to cease using stolen cards and return the illicitly obtained funds to a bank (name withheld).
She emphasised the importance of these efforts in supporting President Samia Suluhu Hassan’s tourism promotion initiatives.
In response, Tato condemned in the strongest terms possible the fraudulent activities allegedly committed by certain tour operators using the government payment system.
Tato has expressed its full support for the government and the Ministry of Finance in its efforts to improve the tourism industry’s operational integrity and transparency.
Tato executive director, Mr Elirehema Maturo, expressed his appreciation to the authorities for their proactive measures in tackling the issue.
“We are also thankful for being informed about the tour operators involved in using stolen payment cards for government payments,” Mr Maturo said.
This statement underscores Tato’s commitment to upholding ethical standards within the industry and its readiness to cooperate with government initiatives aimed at eliminating fraudulent practices.
Tato chairman, Mr Wilbard Chambulo, has also voiced his outrage, labeling the fraudulent activities as unpatriotic and against the laws, rules, and procedures governing the tourism sector in Tanzania.
He emphasised that such behavior tarnishes the reputation of the tourism industry, which is a vital component of the nation’s economy.
By condemning these actions publicly, Tato aims to send a clear message that unethical practices will not be tolerated within its membership or the wider tourism community.
The “List of Shame” issued by the government indicates that only two out of its 323 Tato active members—Peacock Tours and Safaris Ltd and Kilimanjaro Heroes Adventure Ltd—were implicated in the scandal.
In a swift move to address the issue, Tato contacted these companies on September 5, 2024, instructing them to visit NMB Bank branches to rectify the situation. This immediate action demonstrates Tato’s commitment to maintaining the highest standards of integrity and accountability among its members.
To prevent future occurrences of such fraudulent activities, Tato has called for stricter regulations.
Mr Chambulo has urged the government to ensure that all tourism service payments are processed through banks and made in the name of the respective tour company. He specifically advised against the use of third-party payment cards.
“We strongly advise the government to mandate banking system transfers for tourism service payments and prohibit third-party payment card usage. The payment should be made in the name of the tour company,” the Tato’s chief emphasised.
This proposal aims to enhance transparency and accountability in financial transactions within the tourism industry, thereby safeguarding the industry’s integrity.
