Chinese firms involved in money laundering racket face the music in Tanzania

[Wacha1]

Senior management officials of these Chinese companies have been detained in Tanzania since the first week of November.

Chinese firms involved in money laundering racket face the music in Tanzania | India News | Zee News​

New Delhi: Chinese involvement in money laundering has been growing lately, with an apparent shift in its money laundering schemes to underdeveloped inland regions. At least 8 Chinese companies, working on various development projects in Tanzania, were found involved in money laundering activities by the Tanzanian authorities.

The senior management officials of these companies have been detained since the first week of November. Simultaneously, 6 senior employees of China Commercial Bank Limited (CCB), based in Dar-es-Salaam, were also detained on alleged money laundering charges. All the Chinese companies, whose senior management officials have been detained, have their accounts in CCB, through which all the money laundering activities suspected to be channelized.

Subsequently, the Bank of Tanzania (BoT - Tanzanian Central Bank) took over the operations of CCB on November 19, 2020, quoting the failure of the Chinese bank to meet regulatory requirements regarding capital adequacy as the apparent reason.

"Thus, to permit China Commercial Bank Limited to continue with banking operations while under a state of undercapitalization is detrimental to the interests of depositors - and poses a systemic risk to the stability of the financial system,” Central Bank of Tanzania (BoT) said in a statement published by The Citizen.

The actual reason for this take over was the unexplainable discrepancy in the CCB’s accounts, found during an audit conducted by the BoT and a Task Force. The Bank had shown cash of Tanzanian Shilling 20 billion and Chinese Yuan two million in their possession on papers, whereas actually, they were having cash of Tanzanian Shilling 250 billion and Chinese Yuan 20 million.

During the audit, it was also found that CCB was conducting an unaccounted monetary transaction with some banks in New York. The confiscated loose slips carrying amount, date, name of Bank and some codes in relation to such unaccounted transactions totals of Tanzanians Shilling 250 billion. However, the real transacted value could be much higher.

Having in possession of more than ten times of cash than the bank documents and conducting an unaccounted transaction based on loose slips helped BoT to make a case of money laundering against the Chinese Bank and the Chinese companies investing in the banks.

CCB was opened in Tanzania in 2012 in the name of bringing in Chinese investment to Tanzania. However, only Chinese companies were allowed to have their accounts or do any transactions in the Bank. No local employees were ever recruited by the CCB in order to safeguard the information of its involvement in money laundering activities.

Presently, the Board of Directors and Management of CCB stands suspended and the bank has been closed by the BoT for normal business till up to mid-February 2021.

Meanwhile, the Chinese government is trying to cover up the entire incident. Chinese President Xi Jinping made a phone call (December 15) to his Tanzanian counterpart in order to address the issue of detention of senior Chinese company officials and bank employees. Moreover, Chinese Foreign Minister, Wang Yi is also likely to visit Tanzania in January 2021, primarily to negotiate the issue of release of the above Chinese detainees.

It is very likely that the issue would be buried down in an exchange of some financial favours from China to the fund-deficient country. It is being anticipated that China would offer to provide financial assistance for the Julius Nyerere Hydro Power Project, which is facing a severe financial crunch. The power plant is being constructed by Arab contractors on Rufiji River, but the progress of the project has been hampered due to lack of funds. China would certainly try its best to lure Tanzanian leadership to release of the Chinese detainees and conceal the entire episode.

According to the 2015 International Narcotics Control Strategy Report (INCSR) of the Bureau of International Narcotics and Law Enforcement Affairs of the US State Department, China leads the world in illicit capital flows.

INCSR, which monitors international money laundering, also claims that China is not only a leading source of illegal money transfers, but it consistently fails to cooperate with other countries in resolving cross-border money laundering as well.

The report also notes that China has adopted new money laundering methods including illegal fundraising activity, cross-border communication fraud as well as ill-practices in banking, securities, and transportation services.

Good job from our BOT officials. Kwa hiyo yale makengeza ya wapotoshaji kwamba JPM ameishiwa na mpunga hayana nafasi. Wahindi hao wamefumua kila kitu why Wachina wanataka kuficha madhambi yao.

Tanzania ni tajiri JPM.

 

[Hechinodemata]

I like this, but Chinese are very technical when it comes to such saga. I am sure all the held Chinese official will be released soon saga will be closed. Chinese play the same game almost all African countries.

 

[Wacha1]

I like this, but Chinese are very technical when it comes to such saga. I am sure all the held Chinese official will be released soon saga will be closed. Chinese play the same game almost all African countries.

Lets wait, I can't see JPM doing so. That invitation request came at the time of his holiday in Chato. JPM as always does the right thing.

 

[kifupi kirefu]

Hapa lipo tatizo Kama taarifa hii ni sahihi, Mhe. Kabudi Kuna sehemu unawakosea wananchi pamoja na kuwavunja moyo team ya BOT.

Kama wamebaini madudu ni vyema hatua stahiki zikachukuliwa na haki ikatendeka kupitia vyombo vya sheria.

Kuja nchini kwa ugeni wa Wazir wa Mambo ya nje wakati zipo tuhuma za money laundering zinakabili wakubwa wakibiashara wa china kunatutia doha.

Hata Kama lipo takwa lakidiplomasia ndani yake, Waziri wa Mambo ya nje ni mdogo sana kwetu. Watume Giants ambao wanaweza kukaa meza moja na Giants wakwetu wakiwemo wataalam wa fedha ili tusilaghaiwe.

Vinginevyo niwapongeze wazalendo wachache walioshiriki kubaini mapungufu na udanganyifu uliolezwa. Tusiuze utu wetu kwa vipande vya fedha, Bora miradi ikwame lakini tusimame Kama Taifa uru lisiloegemea upande wowote.

Tukilegea kwa wachina tumelegea kwa wakubwa wote Duniani.

 

[Wacha1]

Hapa lipo tatizo Kama taarifa hii ni sahihi, Mhe. Kabudi Kuna sehemu unawakosea wananchi pamoja na kuwavunja moyo team ya BOT.

Kama wamebaini madudu ni vyema hatua stahiki zikachukuliwa na haki ikatendeka kupitia vyombo vya sheria.

Kuja nchini kwa ugeni wa Wazir wa Mambo ya nje wakati zipo tuhuma za money laundering zinakabili wakubwa wakibiashara wa china kunatutia doha.

Hata Kama lipo takwa lakidiplomasia ndani yake, Waziri wa Mambo ya nje ni mdogo sana kwetu. Watume Giants ambao wanaweza kukaa meza moja na Giants wakwetu wakiwemo wataalam wa fedha ili tusilaghaiwe.

Vinginevyo niwapongeze wazalendo wachache walioshiriki kubaini mapungufu na udanganyifu uliolezwa. Tusiuze utu wetu kwa vipande vya fedha, Bora miradi ikwame lakini tusimame Kama Taifa uru lisiloegemea upande wowote.

Tukilegea kwa wachina tumelegea kwa wakubwa wote Duniani

Prof Kabudi hajakosea kitu, ndio diplomasia ilivyo. Hawezi kumwaga mtama kwenye kuku wengi. Wewe umezinyaka hizi ngoja tuone nini JPM atafanya. Lakini mimi sina wasi wasi kabisa na JPM, haki itatendeka tu, hao watapata walichokuwa wanakitafuta. Tumepata kiongozi ambaye anajali maslahi ya Watanzania waliompa ridhaa ya kuona uchumi wa nchi hii unawafaidisha Watanzania.

 

[Eric Cartman]

Hatari, walau kuna watu wanafanya kazi zao. I am thinking because their activities are shody probably they had secrets vaults at the bank which were uncovered during the investigation.

Lakini kwanini hatuna waandishi wetu wa kufanya investigative jounalism kama hizi.

The government needs to seize the bank assets and close the bank permanently ata wakiachiwa hao wafungwa.

Moreover serikali ianze kuchunguza activities zingine zinazofanywa na wachina especially businesses which were mainly the bank customers.

It’s even more important to understand the source of that money for purposes of learning and taking steps to eliminate those illegal avenues maana hizo hela wanazipatia Tanzania illegally.

Je ni kupitia bidhaa zinazoingia bandarini bila kulipiwa kodi na kuuzwa bila ya risiti or deeper sinister activities?

Whatever the reason muhimu ni kuelewa biashara gani haswa iliyokuwa ikifanywa na kupelekea hiyo bank kuwa na unaccounted surplus serikali lazima ipate hayo majibu with evidence kabla ya ku negotiate deals zozote na China kwenye kuwaachia hao watu.

 

[Wacha1]

Hatari, walau kuna watu wanafanya kazi zao.

Lakini kwanini hatuna waandishi wetu wa kufanya investigative jounalism kama hizi.

Seize the bank assets ata wakiachiwa hao wafungwa na serikali ianze kuchunguza activities zingine zinazofanywa na wachina.

You’d also want to know the source of that money for purposes of learning and taking steps to eliminate those avenues maana wanazipatia Tanzania illegally.

Je ni bidhaa zinazoingia bandarini bila kulipiwa kodi na kuuzwa bila ya risiti?

Muhimu ni kuelewa biashara gani haswa iliyokuwa ikifanywa na kupelekea hiyo uni accounted surplus serikali lazima ipate hayo majibu with evidence kabla ya ku negotiate deals zozote na China kwenye kuwaachia hao watu.

Mkuu waandishi wetu wengi wanategemea kuletewa habari. Hii ni story kubwa sana yaani tangu early November hii Bank imesimamishwa kufanya kazi hadi February mwakani habari tunapata kutoka India Ajabu na ni aibu!

BTW India na China ni kama Tanzania na Kenya, wanatifuana sana kwenye mpaka wao wa pamoja kwa hiyo lazima wawafuatilie kwenye mambo yao.

 

[Eric Cartman]

Mkuu waandishi wetu wengi wanategemea kuletewa habari. Hii ni story kubwa sana yaani tangu early November hii Bank imesimamishwa kufanya kazi hadi February mwakani habari tunapata kutoka India Ajabu na ni aibu!

Sana tu considering the context, this is big story stuff to shame the Chinese.

 

[KalamuTena]

BTW India na China ni kama Tanzania na Kenya, wanatifuana sana kwenye mpaka wao wa pamoja kwa hiyo lazima wawafuatilie kwenye mambo yao.

Eeenh, what ana analogy?

Nakumbuka enzi zile za Kikwete. Unaingia kwenye mabenk ya jirani yaliyopo hapa; unakutana na jamaa toka huko wana-'offload' maburungutu kwa maburungutu ya manoti, sijui walikuwa wakiyatoa wapi!

Siku hizi siwaoni wakifanya hivyo kwa namna ile!

 

[Larkin]

This is possible. Jamaa wa BoT Supervision Unit siku hizi wako vizuri sana wakiongozwa na Director na Manager wa Supervision na wanapata support kubwa sana ya watawala tofauti na zamani. Mabenki siku hizi hatulali

 

[Powder]

Hatari, walau kuna watu wanafanya kazi zao. I am thinking because their activities are shody probably they had secrets vaults at the bank which were uncovered during the investigation.

Lakini kwanini hatuna waandishi wetu wa kufanya investigative jounalism kama hizi.

The government needs to seize the bank assets and close the bank permanently ata wakiachiwa hao wafungwa.

Moreover serikali ianze kuchunguza activities zingine zinazofanywa na wachina especially businesses which were mainly the bank customers.

It’s even more important to understand the source of that money for purposes of learning and taking steps to eliminate those illegal avenues maana hizo hela wanazipatia Tanzania illegally.

Je ni kupitia bidhaa zinazoingia bandarini bila kulipiwa kodi na kuuzwa bila ya risiti or deeper sinister activities?

Whatever the reason muhimu ni kuelewa biashara gani haswa iliyokuwa ikifanywa na kupelekea hiyo bank kuwa na unaccounted surplus serikali lazima ipate hayo majibu with evidence kabla ya ku negotiate deals zozote na China kwenye kuwaachia hao watu.

Unauliza hakuna investigative jounalism kufukunyua Habari kama hizi....

Wewe ni mgeni!? Unataka wafe!?

 

[Black Sniper]

Kumbe ndio maana Waziri wao anakuja ili kupoza mambo
Hawa jamaa wanajulikana duniani kote kwa Money laundering, prostitution, child slaves na hata unga na hizi ndio kazi zao kubwa
Bora BoT wamewashtukia