Tuesday, November 1, 2016

Prosecution tables facts on ex-ATCL boss, two others

FAUSTINE KAPAMA
DAR ES SALAAM’s Kisutu Resident Magistrate’s Court yesterday heard how former Air Tanzania Company Limited (ATCL) Managing Director David Mattaka subjected the company to over 86bn/- pecuniary loss.

The prosecution, led by Principal State Attorney Timony Vitalis, told Principal Resident Magistrate Respicious Mwijage that Mataka, who is charged alongside two others, caused the loss through signing of the Aircraft Lease Agreement in respect of Airbus A320-214 between ATCL and Wallis Trading Inc.
The other accused in the matter are Ramadhan Seif Mlinga and Bertha Humphrey Soka, former senior officials with the Public Procurement Regulatory Authority (PPRA), who face one count of minute forgery.
Reading the memorandum of the case facts, the prosecution alleged that Mattaka had ignored the advice of his experts who did advised him not to sign the acceptance certificate for the airplane, which was still under maintenance and would have taken over two months to complete.
It is stated that the plane was released to ATCL after the government guarantee, which was approved by the Ministry of Finance retrospectively. The plane, the prosecution said, operated within the country for six months, starting May 30 through December 10, 2008, generating an income of 17,813,265,109/-.
The prosecution told the court further that during the period of operating the airbus, ATCL signed a maintenance agreement with Air Mauritius for the aircraft repair at 130,885.17 Euros, which was duly paid. On March 5, 2009, the aircraft was flown to Mauritius for maintenance and was withheld there for months because ATCL could not foot the bill.
The prosecution alleged that on July 5, 2009, the plane was flown from Mauritius to France where the total maintenance cost was 1,244,443.94 Euros. “ATCL was able to pay 1,986.38 Euros only.
At the same time ATCL had to engage and pay SGI Technical Services company a sum of 14,000 Euros for supervising 12 years C Check. The aircraft was withheld in France for months because ATCL was unable to pay its outstanding maintenance bill,” the prosecution charged.
The court was told further that on October 27, 2011, Wallis Trading Inc (the Lessor) terminated its lease contract with ATCL and paid all the French maintenance costs and repossessed the plane. It is alleged that the Lessor presented to the ATCL a bill of 45,103,838.80 US dollars.
“The government team negotiated the bill and reduced it to 42,459,316.12 US dollars. Out of that outstanding bill, the Lessor has been paid by the Ministry of Finance (Guarantor) a sum of 26,128,438.82 US dollars.
The balance is still outstanding,” the prosecution further alleged. After presenting the facts, Mattaka denied them all, but his co-accused (Mlinga) admitted that on February 27, 2008, the Paymaster General at the time, Mr Gray Mgonja, wrote a letter to him as PPRA Chief Executive Officer, seeking his opinion if ATCL followed the procurement rules.
The former PPRA boss told the court that he replied that ATCL did not follow the rules in securing the aircraft lease agreement. He further admitted that on March 12, 2008, he had written a letter to Mattaka advising him to make an application to Mr Mgonja.
Such letter, he stated, was for retrospective approval of the ATCL irregular lease of the airplane for the company to get government guarantee. On March 19, 2008, Mlinga advised Mr Mgonja to approve retrospectively the ATCL irregular lease agreement. He admitted to have given the advice because further delay for the government to issue a guarantee would have subjected ATCL to a contractual penalties and business loss.
Finally, Mr Mgonja approved the lease agreement retrospectively, basing on the advice from Mlinga. After the approval, on March 27, 2008, Mr Mgonja wrote a loose minute to the Minister of Finance, advising him to grant the government guarantee to ATCL.
On March 28, 2008, the minister approved the guarantee, which facilitated the aircraft released to ATCL. Facts by the prosecution show that the aircraft left San Salvador for Tanzania on April 28, 2008 and landed in the country on May 1, 2008, but operated for only six months before undergoing further maintenance.
Full hearing of the matter takes off on November 23

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