PCCB appeals for foreign assistance in escrow probe

PCCB Director General Edward Hoseah and the Chinese ambassador to Tanzania, Dr Lu Youqing, exchange documents in Dar es Salaam yesterday after China donated to the anti-corruption agency technical equipment worth Sh3 billion. PHOTO | SALIM SHAO      

By Songa wa Songa The Citizen Reporter

In Summary

PCCB Director General Edward Hoseah made the appeal on Dar es Salaam when receiving technical equipment worth Sh3 billion from the Chinese ambassador to Tanzania, Dr Lü Youqing. He said the support of those countries, including the US and the UK, is crucial in the PCCB’s efforts to gather watertight evidence against holders of accounts that received part of the Sh306 billion that was deposited in the Tegeta escrow account at the Bank of Tanzania (BoT).
  

Dar es Salaam. The Prevention and Combating of Corruption Bureau (PCCB) yesterday appealed to foreign countries where escrow loot is stashed to help it net the culprits.

PCCB Director General Edward Hoseahh made the appeal on Dar es Salaam when receiving technical equipment worth Sh3 billion from the Chinese ambassador to Tanzania, Dr Lü Youqing. He said the support of those countries, including the US and the UK, is crucial in the PCCB’s efforts to gather watertight evidence against holders of accounts that received part of the Sh306 billion that was deposited in the Tegeta escrow account at the Bank of Tanzania (BoT).

From the BoT, the monies were deposited with two local banks namely Stanbic Bank and Mkombozi Commercial Bank, from which it was given to various beneficiaries including public officials under suspect circumstances.

Last week, Finance minister Saada Mkuya told Parliament that the Financial Intelligence Unit (FIU) had forwarded its report on the role of the two banks to PCCB for further investigation as required by law.

The two banks were accused of violating anti-money laundering rules and transferring money from the Tegeta escrow account.

But yesterday, Dr Hoseah said the battle on the local ground was going on well but not on the foreign front which needs the cooperation of the anti-graft agencies in the recipient countries.

“We cannot do it on our own. I urge foreign countries where the monies were stashed to help us pin the culprits,” Dr Hoseah said.

In December last year, The Citizen reported that PCCB had seized bank accounts and overseas property believed to have been bought with the missing escrow billions.

Sources privy to the investigations told this paper that a couple of bank accounts stashed with billions of shillings had been traced and frozen in the US.

Also, new property, mainly in real estate and reportedly bought in South Africa and Australia between November 2013 and October 2014, had been seized at the PCCB’s orders pending the outcome of the investigation into the scandal as directed by Parliament.

The source confided to this paper that the controversial bank accounts and property had been traced to individuals believed to have benefitted from the escrow funds withdrawn fraudulently from the central bank and shared among senior government officials and influential businessmen.

In a bid to conceal the true owners, the property is said to have been registered suspiciously, some by foreign business associates of the prime suspects.