Former Tanzania Revenue Authority boss Harry Kitilya, former Stanbic
Bank head of Investment and Miss Tanzania 1996 Shose Sinare and head of
Legal and Company secretary Sioi Sumari (left) are led out of the Kisutu
Resident Magistrate’s Court in Dar es Salaam yesterday after their
application for bail was dismissed. The three are charged with eight
counts, including forgery and laundering of over $6 million (Sh12
billion).
Former Tanzania
Revenue Authority (TRA) boss Harry Kitilya, on trial over a Sh12 billion
money laundering scam, will continue to languish in remand prison after
a court in Dar es Salaam denied him bail.
The
Kisutu Resident Magistrate’s Court said it cannot grant bail to Mr
Kitilya and two other people facing the same charge because their
offence was not bailable.
Senior Resident Magistrate Emilius Mchauru sided with the prosecution that he had no discretion to release the accused on bail.
“There’s
no doubt that the offence of money laundering the three accused face is
not a bailable offence under our laws. Therefore, this court lacks
powers to entertain the application for bail filed by the accused,” the
magistrate ruled. Mr Kitilya is charged along former Miss Tanzania and
head of Investment Banking at Stanbic Bank, Shose Sinare, and Sioi
Graham Solomon, the former Chief Legal Counsel to the bank.
They
are facing charges of forgery, uttering false information and
fraudulently obtaining $6 million (about Sh12 billion) which was paid to
them as a kickback in facilitating the securing of the $600 million
foreign loan by the government of Tanzania.
Mr Kitilya’s firm, Enterprise Growth Markets Advisors (EGMA), was allegedly paid the Sh12 billion bribe in the loan transaction.
Yesterday, the defence team led by a prominent advocate Dr Ringo Tenga argued about the validity of the money laundering charge.
According to Dr Tenga, the charge sheet discloses no particulars relating to the offence of money laundering.
He
requested the court to dismiss the charge, arguing that the money
laundering charge was fatally defective and could not be cured by law.
The
court will rule on the submission by Dr Tenga on April 22. Prosecution
has alleged that the accused committed the offences between August 2012,
March 2013 and September 2015.
It
is alleged in the first count that the accused conspired with other
people not in court to fraudulently obtain from the government of
Tanzania between August 2012 and March 2013 in Dar es Salaam.
Ms Sinare is separately charged with three offences of forgery and uttering false document to facilitate the deal.
According
to court documents, it was alleged that on August 2, 2012 at Stanbic
Bank Tanzania Limited headquarters the socialite Sinare made a false
Standard Bank’s financing proposal to show that the London bank, in
collaboration with the Stanbic Bank of Tanzania, would raise a loan
amounting to $550 million for the government of Tanzania at a
facilitation fee of 2.5 per cent of the principal amount.
The
accused also fraudulently uttered false documents to the Finance
ministry to facilitate the deal. They are also accused of making false
mandate letter for proposed offering of $550 million financing dated
September 20, 2012 to show that the two banks would raise the money for
Tanzanian government if engaged as a lead manager, at a facilitation fee
of 2.4 per cent of the principal amount.
According
to prosecution, the accused had on November 5, 2012 at the Stanbic bank
main office, prepared a false collaboration agreement to show that
Stanbic bank Tanzania Limited has established a consortium to
collaborate with EGMA to arrange for the $ 550 financing to the
Tanzanian government.
Source:TheCitizen