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Meghji tables summary of BoT audit
2008-01-30 09:37:05
By Bilham Kimati, Dodoma
Finance minister Zakia Meghji yesterday tabled in parliament an extract of the Ernst and Young audit report on the Bank of Tanzania’s External Payment Account (EPA) that revealed multi billion losses that had occurred through dubious payments.
Meghji said BoT Audited Accounts for 2005/2006 report had revealed that those who received EPA payments had used forged documents.
The revelations prompted friction between BoT and the assigned foreign auditing firm whose duties were rudely suspended by the management in retaliation for telling the truth, Meghji said.
``The government intervened and instructed the office of the Controller and Auditor General to make sure that the accounts were audited comprehensively,`` the minister said, adding that it took five months between January and May 2007 to identify a qualified foreign audit company, Ernst and Young, to carry out the assignment.
The minister said the accumulation of debts dated back more than 27 years, showing that 133,015,186,220.74/- was wrongly paid to 22 local companies.
The minister named the companies as Bencon International Limited of Tanzania, V.B. & Associates Company Limited of Tanzania, Bina Resorts Limited, Venus Hotel Limited of Tanzania and Njake Hotel & Tours Limited.
Others are Maltan Mining Company Limited of Tanzania, Money Planners and Consultants, Bora Hotels and Apartments Limited, B.V. Holdings Limited, Ndovu Soaps Limited, Navy Cut Tobacco (T) Limited of Tanzania and Changanyikeni Residential Complex Limited.
Also listed are Kagoda Agriculture Limited & T International Limited, Excellent Services Limited, Mibale Farm and Liquidity Service Limited.
Others are Clayton Marketing Limited, M/S Rashtas (T) Limited, Malegesi Law Chambers Advocates, Kiloloma & Brother and KERNEL Limited.
The minister further said that a total of 42,656,107,417.00/- was paid to nine companies which lacked any supporting documents to authenticate the payments, making it difficult for the auditors to track down the mode of payment.
``Two companies, Rashtas (T) Limited and G & T International Limited, were not registered with the Registrar of Companies,`` she said.
Meghji called on the wananchi to be patient as the task force appointed by President Jakaya Kikwete was still making thorough investigations and preparing groundwork for legal action against people implicated in the EPA scandal.
The allegations of extravagant spending of public funds by the BoT were initially made public by opposition MPs Wilbrod Slaa and Hamad Rashid Mohamed, who demanded immediate formation of a probe team.
The findings of the Ernst and Young audit firm were presented to President Kikwete who rescinded the appointment of former BoT Governor Dr. Daudi Balali and appointed Prof Benno Ndulu to replace him.
He also formed the task force comprising the Inspector General of Police, Director of Prevention and Combating of Corruption Bureau and the Attorney General to investigate all companies and individuals who were involved in the shoddy deals and take appropriate action in line with the laws of the land.
President Kikwete also expressed the government`s determination to stop the malpractice, insisting that the tax-payers money stolen through dubious transactions at the Bank of Tanzania should be returned in cash or through confiscation of properties.
As the minister finished tabling the summary of the report, some MPs stood on a point of order, and asked the Speaker that the entire report should be tabled and not just the summary.
``We believe the government has done a commendable job to expose such dirty financial deals.
It will be more appropriate for Members of Parliament to be issued with detailed copies of the report,`` said John Cheyo (Bariadi East).
Sitta said his office was negotiating with the government so that the full report would be availed to facilitate in-depth House debate.
“The answer to the request will be given to legislators before the end of the week,” he said.
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