Shilling stabilizes around 2,190/-

THE Bank of Tanzania (BoT) has said their strategy to stabilize the shilling against major currencies paid off.
The shilling at the moment wobbling between 2,180/- and 2,200/- against the US dollars quoted by commercial banks which was still good for exporting business.
BoT Governor Prof Benno Ndulu said the shilling was stable since the beginning of this year, a good trend for import and export traders. “You can see now the shilling is stable,” Prof Ndulu told ‘Daily News’ recently.

He added: “the level is good as it support exports business…if it goes down (to say 1,500/) will hurt exports.” The current level between shilling and dollar favours’ exports since the country goods and services are sold at discount as few dollars get many shillings.

The BoT data show that the shilling has depreciated by 1.35 per in the last six and half months to 2,179/72 as of yesterday. CRDB bank said yesterday that the shilling continued to gain against the greenback closing at 2181/91.

“We expect the shilling to remain strong following an increase in the demand for the local currency as corporates meet month end obligations,” the bank said on it daily market report.

Another bank, NMB, said the shilling gained slightly on Tuesday against the dollar amidst moderate demand from SMEs and other importers. “Market has experienced good support from agriculture inflows, liquidity tightness and less demand from the larger importers,” NMB said.

Since the beginning of this month the shilling enjoyed good days’ trend after appreciating against British pound and somewhat maintaining levels with the US dollar.

The local currency, appreciated against pound sterling some 70/- to 2,878/34 in the last three weeks. It also maintained its levels against the greenback after slightly dropping by almost 30 cents to 2,190/19 per one dollar.

Bus-train collision left one dead in Dar es Salaam

ONE person died while 43 others were injured Tuesday night after a city-commuter UDA bus collided with a train at Kamata railway crossing.

The UDA bus driver, Majuto Hamis, ignored a stopping signal by Tanzania Railway Limited (TRL) worker, warning that the locomotive was about to cross the road at 21:30 hours.

The accident, according to TRL Police unit, left one, Mr Omar Abdallah, dead while three others sustained life threatening injuries and are admitted at Muhimbili National Hospital (MNH).

The bus driver, Mr Hamis, was among those who sustained serious injuries and is under police guard at his ward.

Two in Dar court over 14bn/- fraud

TWO prominent businessmen, Samwel Shanshasen Lema, and Mohamed Mustafa Yusufali, appeared before the Kisutu Resident Magistrate’s Court in Dar es Salaam yesterday charged with 223 counts of conspiracy, forgery, money laundering, evading tax and occasioning loss of over 14bn/-.

They were not allowed to enter any plea to the charges before Principal Resident Magistrate Wilbard Mashauri because they have been charged under the Economic and Organised Crime Control Act, which falls under the jurisdiction of the High Court.

The two were committed to remand custody until July 28, when the prosecution will respond to the request by the defence team, led by advocates Alex Mgongolwa, Hudson Ndusyepo and Nehemia Nkonko, who are challenging the validity of the charge of money laundering.

In the case, both accused persons are facing one count of conspiracy to defraud, 181 counts of forging tax invoices for two different companies, one count of money laundering and one charge relating to occasioning of loss to a specified authority.

Lema, an Arusha based tycoon, separately faces 38 counts of forging value added tax (VAT) returns and one count of tax evasion. This case is the second for Yusufali, popularly known as ‘Mzee wa Milioni 7 kwa Dakika’, to face before the same court.

The first case involves tax evasion to the tune of 15bn/-. During the court session, the prosecution team comprised Senior State Attorney Mutalemwa Kishenyi and State Attorneys Jacqueline Nyantori and Diana Rukondo and a prosecutor from the Prevention and Combating of Corruption Bureau (PCCB) Leonard Swai.

The prosecution told the court that the accused persons and other persons not in court conspired to defraud the Tanzania Revenue Authority (TRA) of 14,052,011,435.69 between January 1, 2012 and December 3, 2014 within the cities of Arusha and Dar es Salaam.

It is alleged that on diverse dates in Dar es Salaam, the two accused persons made false tax invoices bearing different numbers and dates, purporting to show that Northern Engineering and Elerai Construction Co. Limited purchased commodities from various companies worth billions of shillings.

The prosecution alleged further that on different dates in the city, with intent to defraud, Lema made several VAT returns for different months, purportedly showing that Northern Engineering Works Limited during such months purchased commodities worth billions of shillings, while it was false. Lema is also charged with evading tax amounting to 14,052,011,435.69 between January 1, 2012 and December 31, 2015 -- in Dar es Salaam.

Being director responsible for management affairs of his companies, Northern Engineering Works Limited and Elerai Construction Co. Limited, which are registered VAT payers, with a view to fraudulently evade tax, he allegedly submitted to the Commissioner of TRA false returns.

All the accused persons were charged with an offence of money laundering allegedly committed between February 1, 2012 and February 25, 2013 within the cities of Arusha and Dar es Salaam.

They are alleged to have directly engaged themselves in a transaction of 420m/-, which, according to the prosecution, was proceed of predicate offences by depositing the amount in a bank account by the name Igba Jeferali Jafferjee at I and M Bank (T) Limited and subsequently withdrawing the same in cash.

The prosecution told the court that at the time of depositing and withdrawing of the money, the accused persons knew or ought to have known that the said sum was proceeds of predicate offences, which are forgery and tax evasion.

It is alleged further that between January 1, 2012 and December 31, 2015, in the city, by reason of their wilful acts, Lema and Yusufali submitted to the Commissioner General of TRA false value added tax returns, hence the government to suffer a pecuniary loss of 14,052,011,435.69.

Immediately after the prosecution had read over the charges to the accused persons, Advocate Mgongolwa, on behalf of the defence team, rose up and requested the court to strike out the money laundering charge “because it was incurably defective’’.

“The defect goes straight to the particulars of the offence. Those particulars of the offence are fatal and cannot be cured under the law. Money laundering offence must contain four elements like Illicit source Placement, layering and integration,” Mr Mgongolwa argued.

Under the Anti-Money Laundering Act, money laundering is defined as engagement of person(s), direct or indirectly in conversion, transfer, concealment, disguising, use or acquisition of money or property known to be of illicit origin and in which such engagement intends to avoid legal consequence.

From such definition, he submitted, one could rightly say that for there to be an offence of money laundering, there must be intention on the part of the accused person to avoid the legal consequences of such action -- hence, the intention forms a basic element in particulars of the offence.

According to the advocates, looking at the count, the particulars of the offence were insufficient to meet test required under section 3 which defines the offence of money laundering and constituent acts provided for under section 12 (a) (b) (c) and (d) of the Anti-Money Laundering Act.

Fresh directives for Dodoma

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THE Prime Minister, Mr Kassim Majaliwa, has directed the Dodoma Regional Commissioner’s Office and Capital Development Authority (CDA) to submit to him within two weeks a preliminary proposal on how they will execute the programme of the government to shift from Dar es Salaam to the new capitaldesignate – Dodoma.

In addition to that, the government will table a bill expressing its intention to move the capital to Dodoma at the next parliamentary session in September.

Mr Majaliwa issued the directive yesterday when he met with various societal leaders in Dodoma to clarify the announcement made by President John Magufuli on the renewed intention of the government to shift from Dar es Salaam to Dodoma at the CCM Special National Congress,which was held in the new capital-designate last week.

He assured his audience that President Magufuli’s directive on the government’s transfer to Dodoma was real and true and that everyone should get prepared. The Premier observed that Dodoma had enough facilities and infrastructure that will enable smooth implementation of the exercise for which the government has made a firm commitment.

He mentioned existing facilities and services such as buildings, roads, water and electricity, saying they provided a solid foundation for the absorption of staff to be involved in the capital shift.

Mr Majaliwa tasked CDA and Dodoma Municipal Council to prepare architectural and planning designs for new settlements and government offices as well as commercial and residential areas to accommodate all groups.

The Premier cautioned the two authorities to take every precaution to avoid mistakes done by other cities like Dar es Salaam, Mwanza and Arusha whereby executives failed to make proper city plans and caused congestion.

Meanwhile, the private sector here, including entrepreneurial groups, hotels and guest house owners submitted to the prime minister a request for tax holidays for people and firms who would like to invest in Dodoma.

Presenting the request on behalf of others, Mr Haruna Chavuma noted that such relief/waiver will speed up the rate of investment in Dodoma and change the general outlook of the designated capital city.

He also asked the government to take it up with financial institutions, including banks, to offer reasonable interest to people who will seek financial support, including loans.

Dodoma Regional Commissioner Jordan Rugimbana assured Mr Majaliwa that he has heard all the directives issued by the prime minister and that he is ready to work for them and ready to submit a preliminary proposal within 10 days -- four days before the deadline.

In another development, CDA has asked for 12 months to fully complete the job. The state-run authority said the 20- year National Capital Master Plan endorsed in 2010 provided enough breathing space for the investors, business community, international and government agencies to set up their businesses in the semi-arid region.

CDA Director General, Mr Paskasi Muragili, told the ‘Daily News’ over the phone from Dodoma yesterday that “the authority is well prepared and it will only need one year to fully complete the pending task.” The task, according to the DG, includes distribution of social services, water, electricity and roads to meet the demands.

“Relocation of the capital city is not atypical,” he said, adding: “In our case the plans started in 1973.” Shortly after President Magufuli and Mr Majaliwa officially declared their intention to relocate to Dodoma, there has been a fresh demand and rush among the public and private sector to look for plots in the Capital City District.

Without going deep into detail, Mr Muragili said many government agencies had knocked at his door in the quest for land to establish their offices. However, CDA is happy that over 85 per cent of the Capital City District is surveyed and mapped.

The initiative by the authority has also been well lauded by analysts who went on to note that Dar es Salaam is nowhere in fully implementing the city’s master plan. As part of plans to decongest the new capital city designate, the authority had identified Hombolo, Mpunguzi and Nala as expected satellite towns.

The towns will be able to offer similar social services; banking service, hotels, schools, hospitals, transports and markets available in the city centre. National Bureau of Statistics (NBS) figures show there were 2.084 million people in Dodoma as of 2012 -- lower than the 4.364 million people in Dar es Salaam.

Critics said the government should meanwhile speed up the construction of infrastructures, especially airport and railway to foster the region’s growth. Speaking at the CCM National Congress, President Magufuli said he will relocate his office to Dodoma before the end of his five-year term of office.

CHADEMA plans national rallies, police warns them!

CHADEMA, the main opposition party, has declared a nationwide public rallies coming September 1, to denounce what they term government violation of principles of good governance.

However, the Police Force has maintained that their stance on public meetings remains unchanged. Police had already drawn a line on any rally in the country by banning all political parties meetings, warning that whoever caught defying the directive would be squarely dealt with.

Despite the previous ban, CHADEMA National Chairman, Mr Freeman Mbowe, told a press conference in Dar es Salaam today that they were prepared for the event.

"The party's lawyers should also meet to review events that have occurred so far in order to take possible legal action against the government," he said when briefing journalists on deliberations reached by party's national executive committee which met last weekend.

Ahead of the planned rallies, Mr Mbowe said the party starts internal meetings to discuss the state of politics in the country.

In a swift response on Mbowe’s remarks, Commissioner of Police for Training and Operations, Mr Nsato Mssanzya, said he was less concerned with the recent declaration by CHADEMA, insisting that country’s laws must be respected.

“It must be understood that the directive previously made regarding public rallies is the one I am concerned about, if they (CHADEMA) met and reached into such agreement regarding the same issue then it is their problem and none of my business,” he told ‘Daily News’ in a telephone interview.

Mr Mssanzya further said both of them (police and the party) operate under certain laid rules and regulations set by the law in which if anyone violates any of them the law will take its course.

He cited an example of what happened once the party tried to block the ruling CCM from holding its general congress in Dodoma. He noted that the same measures applied to tackle that situation was a good example and no need to comment on their new plan.

President John Magufuli on separate events has added his voice on political rallies saying that time for politicking was over until 2020.

Kinana unveils top CCM position ‘exit plan’

SECRETARY General of the ruling Chama Cha Mapinduzi (CCM) Abdulrahaman Kinana yesterday unveiled his plan to quit the party’s top executive job at the general congress to give chance to energetic youth to lead East Africa’s oldest political party.

Speaking here shortly after inspecting the party’s main conference centre, a place set to accommodate nearly 4,000 party members for the general congress, Mr Kinana said it was the right time for him to go. “I have served this post for three and half years.

I was requested by the party elders to join the top post in the party leadership structure,” Mr Kinana told reporters. He revealed that he did not like being CCM top administrator but had conceded to the requests by retired leaders and party officials. “It is not a position I preferred.

I was summoned by leaders and asked to lead the party, I agreed because they are people I highly respected,” he noted. Mr Kinana who has previously served the party in various position and member for the central committee for the past 25 years, affirmed that he has learnt a number of challenges some of which quite disappointing.

According to Mr Kinana, a good politician is the one who understands the best time to join and/or quit the part. He said he had agreed with elders to help the outgoing party Chairman, Mr Jakaya Kikwete, to strengthen the party as well as screen candidates for the presidential, legislative and councillorship posts.

“The elections are over. I hope I should now go and rest since I have fulfilled what I was assigned to do,” he said in Dodoma, noting that he will talk to the incoming party National Chairman, Mr John Magufuli, regarding the post.

“I have not been asked by Mr Magufuli whether he wants me to stay, but that will mean the two of us should discuss as it happened in 2012.” The Secretary General maintains a clear level of argument “as the party will not tolerate and put a smile onto treacherous.”

He said the party has been strict against betrayers from the district, regional to the national level. The just recent action was in Shinyanga where 123 members were held accountable.

He pointed out that the party’s dwindling communication to its members at the grassroots had seriously damaged the party’s image. “But another challenge was to reinforce unity and solidarity within the party,” he said, acknowledging in his three years as the party leader, he witnessed disunity and disputes that clearly affected the party.

“I worked with other leaders and we managed to return discipline, unity and solidarity within the party,” he said. Mr Kinana visited all districts, provinces and regions--travelling over 192,000km and holding 3,700 political meetings across the country.

He said there areas in which he argued with his leaders and government officials that “They were too dangerous for me to go ... but I said I have and I must get there.” The secretary said he had to risk his life, ferrying in dilapidated fishing boats just to reach at areas that the top government and party leaders had never reached.

“I remember the former president, Mr Kikwete and Kyela district commissioner also warned me against the use of fish-boats,” he recalled.

Delay by the government to pay farmers, land conflicts, lack of agro inputs and delays to disburse development funds in district councils from the central bank were among the issues he encountered in his nearly four-year tenure.

Four PMO employees charged for stealing

FOUR officials from the Prime Minister’s Office (PMO) appeared before the Kisutu Resident Magistrate’s Court in Dar es Salaam yesterday charged for stealing several items valued over 100m/- meant for disaster management.

Before Principal Resident Magistrate Respicious Mwijage, the accused persons were Hamed Yusuph,( 48), Halima Mwanjiro (33), both supplies officers and Martin Tyeah (31) and Mwaija Kimata, (55), all assistant supplies officers. They denied the charges and were released on bail upon meeting the set bail conditions.

The conditions demanded each of them securing one reliable surety, employed in any government institution or registered institution. Such surety, according to the magistrate, was required to sign a bond of 25m/-.

The case was adjourned to August 22 for mention as investigations into the matter, according to the prosecution led by Inspector of Police Jackson Chidunda, have not been completed. It is alleged that the accused persons committed the offence between April and September 2014 at Keko area near Medical Store Department (MSD) warehouse in Temeke District, Dar es Salaam.

The prosecution told the court that being employees of PMO, the accused persons stole 5,074 iron sheets, 200 cooking sets, 348 blankets and 300 sleeping mats, all valued at 100,164,000/-, the property of their employer, which came into their possession by virtual of their employment.

Meanwhile, a Chinese, Senxin Van, yesterday escaped a jail term of three years having managed to pay a fine of 500,000/- for violating immigration laws. Before the same court, Principal Resident Magistrate, Huruma Shaidi, convicted Van of failure to comply with conditions specified in his resident permit on his own plea of guilty.

An Immigration Department prosecutor, Novatus Mlay, had told the court that being a citizen of China, Van was found on July 12, this year at Tenglong Investment Limited in Kinondoni District working as a doctor. According to the prosecution, the Chinese’s working permit allowed him only to work as director in the Tong Xing Foot Wear Company Limited.

Before being sentenced, the Chinese had pleaded for light sentence because he has a family that depend on him and that being the director of the company, the business he was supervising would collapse if given a custodian punishment