Former Industry and Trade Minister Iddi Simba and two other people yesterday appeared in the Kisutu Resident Magistrate’s Court in Dar es Salaam charged with eight counts including conspiracy, forgery, diversion, abuse of position and causing Shirika la Usafiri Dar e s Salaam (UDA) loss of over 2bn/-.
The accused pleaded not guilty to the charges and were released on bail after meeting bail conditions. Simba secured a title deed of 8bn/- as surety.
The prosecution side led by Prevention and Combating of Corruption Bureau (PCCB) Officer Beny Lincolin named the other accused as Salum Mwaking’inda, a former board director and former Sinza Ward Councillor and former UDA General Manager Victor Milanzi.
On the first count, Lincolin claimed that on September 2, 2009 in Dar es Salaam, the accused conspired together with other unknown persons to commit an offence of diversion.
On the second count, it was alleged that on the same date and place Simba and Milanzi with intent to defraud or deceive, forged a letter dated September 2, 2009, purporting to show that all bank accounts of UDA Ltd had overdraft facilities, which was not true.
On the third count, it was alleged that on the same date and place Simba and Milanzi on September 2, 2009 in Dar es Salaam, being the chairman of the board of directors and the general manager of UDA Ltd respectively, diverted for their own benefit, 320m/- intended to be an advance commitment and part payment for shares in UDA Ltd, the money, which they received by virtue of their position.
On the fourth count, it was alleged that between September 3, 2009 and March 31, 2010, Simba who was UDA Ltd board of directors chairman and Milanzi obtained from Robert Kisena 320m/- falsely pretending that the same money was an advance commitment and part payment for shares in UDA Ltd.
On the fifth count, Lincolin alleged that, on the same date and place, the accused being the chairman of the board of directors and general manager of UDA Ltd respectively by wilful act, did divert for their own use, the money intended to be paid as an advance commitment and part payment for shares of UDA Ltd, the act which caused the said UDA Ltd to suffer a pecuniary loss of the said money.
On the sixth count, it was alleged that between September 2009 and February last year in Dar es Salaam, Simba, Mwaking’inda and Milanzi, while discharging their duties, did intentionally abuse their position by disposing 7,880,330 un-issued shares of UDA Ltd, a company owned jointly by the Central Government and Dar es Salaam City Council for consideration of 1,142,643,935/- without conducting competitive tendering, an act which was in violation of Regulation 63(1) of the Public Procurement (Goods, Non-consultant Services and Disposal of Public Assets by Tender) Regulation, 2005.
On the seventh count, it was alleged that on diverse dates between September 9 and February 11 last year in Dar es Salaam the accused, while discharging their duties, intentionally abused their position by allotting 7,880,303 un-issued shares of UDA Ltd owned jointly by the Central Government and the Dar es Salaam City Council to Simon Group Ltd without involving the Central Government and Dar es Salaam City Council, an act, which was in violation of articles of Association of the Company and section 74 of the Companies Act.
On the eighth count, Lincolin claimed that on February 11 last year in Dar es Salaam, all accused by reason of their failure to take reasonable care, sold to Simon Group Ltd 7,880,303 un-issued shared in UDA Ltd at 1,142,643,935/- without conducting competitive tendering proceedings that would have afforded an opportunity to prospective buyers to offer a competitive price for the acquisition of the shares, an act which caused a pecuniary loss, which had a monetary value of 2,378,858,878/80 as the best net return that the company would have achieved for the disposition of the same shares.
Lincolin informed the court that the investigation into the case was complete.
The court ordered the accused to sign a bond of 500m/- each. The court said since the title deed was like a business and because Simba had secured the title deed amounting to 8bn/-, the three would be out on bail using the same title deed.
The court also ordered the accused to bring two sureties each which they did.
The case was adjourned until June 28, this year.