Wednesday, March 16, 2016

Campaign to reopen probe on Standard Bank over $600 ‘bribery’ heats up

DAILY NEWS Reporter
A TANZANIAN based in The Netherlands is leading a campaign to ask the United Kingdom Serious Fraud Office (SFO) to reopen its controversial ‘plea deal’ investigation into London-based ICBC Standard Bank alleged involvement in bribery in Tanzania’s $600 million sovereign bond after claims that the SFO were misled by the financial institution.

Kapinga Kangoma, who until mid-day yesterday had won 1,807 supporters, said in a statement that they were deeply concerned on allegations that Standard Bank misrepresented the truth and suppressed material facts about its order to get the deferred prosecution agreement with SFO.
“We urge Serious Fraud Office to reopen the investigation into Standard Bank and its role in alleged bribery relating to a $600 million bond for our country, Tanzania. We deserve to know the full truth about corruption that affects our country,” he said.
The London-based ICBC Standard Bank paid $33m after admitting it failed to prevent bribery by two bankers at a sister firm in Tanzania. Media reports from UK say the deal, sanctioned by a High Court judge, was the first time the SFO had used its powers to strike a deferred prosecution agreement (DPA).
The UK court heard two officials at Stanbic Bank in Tanzania, which is a subsidiary of the London bank, paid $6m to a third-party in Tanzania to help secure a deal for the bank to raise the $600m for the Tanzanian government. It later emerged that $6m was paid to Enterprise Growth Market Advisors, a company linked to two senior government officials.
Enterprise Growth Chairman Harry Kitilya was the commissioner of the Tanzania Revenue Authority (TRA), while its MD, Fratern Mboya, was the former CEO of the Tanzanian Capital Markets and Securities Authority.
The petition comes as it was revealed that a former banker involved in the original controversial deal is suing ICBC Bank and Stanbic Bank, its former Tanzanian subsidiary, for $30m for “ruining her banking career and any other finance-related business.”
Shose Sinare, the former head of investment banking at Stanbic Bank, claims the bank secured the DPA by suppressing key facts to secure the SFO deal.
She claims the Standard Bank misrepresented the fact it was not aware of a local third party involvement in the deal, insisting it was well aware before signing the deal and that a draft collaboration document had been circulated to the entire deal team including senior officials in London.
Academics, politicians and members of the public have supported the petition to recall the deferred prosecution agreement (DPA) between SFO and Standard Bank. The Director of Nyerere Research Centre, Professor Issa Shivji, said in a twitter post that the case provides good opportunity to start a movement of liberation from the shackles of debt.
“Because a scandal affecting our country - a country in the South - cannot be unilaterally closed apparently to suppress the misdeeds of a multinational bank belonging to North,” Prof Shivji said in a twitter post.
“We’re fast slipping down the road of debt peonage. International sovereign debt is a vicious form of primitive accumulation.” A Member of Parliament (MP) for Mbinga Urban (CCM), Mr Sixtus Mapunda, said the petition was holding public interest and hence important.
“It’s important for good image of our country. It holds public interest!” he said in a post seen on the website created for the petition purposes. The District Commissioner (DC) for Iringa, Mr Richard Kasesela, said it was common for the similar cases to be closed when offenders pay a fine with authorities in the UK.

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