Kitilya, 2 others charged with laundering $6m

Dar es Salaam. Former Taxman Harry Kitilya and two ex-senior officers of Stanbic Bank were yesterday charged at the Kisutu Resident Magistrate’s Court with eight counts including forgery and laundering of over $6 million (Sh12 billion).

Apart from the former Tanzania Revenue Authority commissioner general, the other accused are former Miss Tanzania Shose Mori Sinare and Sioi Graham Solomon.

The accused were charged before resident magistrate Emilius Mchauro.

They denied the charges and were remanded until Wednesday when the court will rule their bail request.

Prosecution team led by Senior State Attorney Osward Tibabyekomya alleged that the accused committed the offences between August 2012, March 2013 and September 2015.

Prosecution alleged that on the first count facing all three accused, on diverse dates between August 2012 and March 2013 in Dar es Salaam, the trio conspired together with other persons who are not yet arrested to commit an offence of obtaining money by false pretences from the government of Tanzania.

The prosecution alleged that Sinare is also separately charged with three offences of forgery and uttering false documents contrary to Sections 333 and 335 (a) 337 and 342 of the Penal Code Cap 16 Revised Edition 2002.

It was alleged that on August 2, 2012 at Stanbic Bank Tanzania Limited headquarters within Kinondoni District, with intent to deceive, Sinare, made a false standard bank’s financing proposal dated August 2, 2012 to show that Standard Bank of London in collaboration with Stanbic Bank of Tanzania would raise a loan amounting to $550 million (Sh1.2 trillion) for the government of Tanzania at a facilitation fee of 2.5 per cent of the principal amount, the fact she knew to be false.

The prosecution alleged that, on August 13, 2012 at the ministry of Finance within Ilala District, the accused fraudulently uttered the false document.

The prosecution further alleged that on September 20, 2012 at the bank’s headquarters, the accused made a false mandate letter for proposed offering of $550 million financing dated September 20, 2012, purporting to show that Standard Bank Plc in collaboration with Stanbic Bank of Tanzania would raise the money financing for the government of Tanzania, if engaged as a lead manager, at a facilitation fee of 2.4 per cent of the principal amount, the fact she knew to be false.

According to the prosecution, on August 21, 2012 at the ministry of Finance, Sinare alleged uttered the false mandate letter.

Apart from charges facing Sinare, the three were also jointly charged with two counts of forgery, obtaining money by false pretences and money laundering. Prosecution alleged that on November 5, 2012 at the Stanbic Bank headquarters, with intent to deceive, the accused prepared a false collaboration agreement dated November 5, 2012 to show that Stanbic Bank Tanzania Limited has established a consortium to collaborate with Enterprise Growth Market Advisor (EGMA) Limited to arrange for financing in the amount of $550 million to the government of Tanzania.

Under which terms EGMA would arrange for negotiation and meeting involving the financing, facilitate understanding on the technicalities of the financing to the government, review finance documents and facilitate the provision of relevant documents of approval that would be required by relevant Tanzanian authorities, the fact they knew to be false. 

The accused were also alleged on diverse dates in March 2013 in Dar es Salaam, jointly obtained from the government of Tanzania $6 million by falsely pretending that the said amount of money was a facilitation fee payable to EGMA company for facilitating together with Stanbic Bank of Tanzania a loan to the government in the said amount.

The prosecution further alleged that, on diverse dates between March 2013 and September 2015, in the City, the accused directly engaged themselves in a transaction involving $6 million by transferring, withdrawing and depositing the money in five different bank accounts maintained by EGMA company at Stanbic Bank Tanzania Limited and others at KCB Bank Limited. The accused allegedly engaged in the transaction while they ought to have known that the said money was the proceeds of a predicate offence of forgery.

The accused pleaded not guilty to the charges, where the defence team led by advocate Ringo Tenga asked the court to grant bail to their clients of the ground that bail is the constitutional right to the accused under Article 13(6)(b) of the Constitution.

However, the request was strongly objected by the prosecution who submitted that the enjoyment of the person’s freedom be subject to the law of the land. Tibabyekomya submitted that, the court has no discretion to grant bail to the accused because all the accused are charged with money laundering offence which is unbailable according to Tanzania laws.

After hearing arguments from both parties, magistrate Mchauru said that he will give ruling on Wednesday. On November 30, last year, it was revealed that some official government officials pocketed $6 million in bribes for a treasury bond deal with a UK bank. Reports say the hefty bribe facilitated the purchase of $600 million (Sh1.3 trillion) treasury bonds in 2013 by the UK-based Standard Bank.

The damning revelation emerged when the bank pleaded guilty in a London court following a charge brought against it by the UK’s Serious Fraud Office.