Growing fears of deep cover-up linked to political, financial clout
THISDAY REPORTER
Dar es Salaam
WITH a fresh probe already underway into Kagoda Agriculture Limited, investigators are facing an increasingly arduous task in getting to the bottom of the truth behind the dubious company that siphoned more than 40bn/- from the Bank of Tanzanias external payment arrears (EPA) account, it has been revealed.
Influential people linked to the shell company have so far managed to stifle any meaningful investigation into the firm, thanks to what is described as an intricate web of financial power and political clout.
Although there is overwhelming evidence of conspiracy, fraud and theft by Kagoda, which was first exposed by international auditors from Delloite & Touche and later confirmed via a special audit of the EPA account conducted by Ernst & Young, authorities are yet to file any criminal charges against the companys promoters.
Well-placed sources say some well-connected members of the local business community, who were the real beneficiaries of the Kagoda funds, have so far managed to deploy their vast network of influence within the government to block the case from going to trial.
So far, prosecutors have filed criminal charges against a total of 20 suspects linked to the EPA embezzlement scandal, including high-profile businessmen Jeetu Patel and Johnson Lukaza.
However, the Kagoda case remains conspicuously missing from the ongoing EPA trials, despite the fact that the company was the single biggest recipient of the loot.
The web of influence wielded by the Kagoda tycoons is believed to have frustrated previous investigations by the EPA scandal probe team led by Attorney General Johnson Mwanyika.
It is understood that evidence gathered by the Mwanyika team failed to convince the Director of Public Prosecutions (DPP), Eliezer Feleshi, to give consent for prosecution of the Kagoda case.
As the new investigation into Kagoda begins, detectives are now expected to turn their attention to an industrial area on the outskirts of Dar es Salaam where the firms registered office premises was listed.
According to official government records, Kagoda named its registered office as Plot Number 87 in Kipawa industrial area, Temeke district, Dar es Salaam.
But there is a distinct possibility that this listed office location could be fictitious, much like everything else with this shell company.
Previous attempts by THISDAY to make a physical visit to Kagodas listed offices hit a stonewall, as Plot No. 87 could not be physically located nor pinpointed on a map.
One interesting lead that investigators are also in line to follow is the residential address of the companys listed shareholders - John Kyomuhendo and Francis William.
Records at the Business Registration and Licensing Authority (BRELA) show that both Kyomuhendo and Francis William are residents of Kinondoni in Dar es Salaam.
Kyomuhendo, whose name appears in most of Kagodas documents, is said to reside in the Kinondoni Hananasif area, at a house located on plot number 51.
On the other hand, Williams residential address is listed as house/plot number 311313 in the same Kinondoni area.
Sources familiar with the EPA probe say most of the key evidence lies at CRDB Bank Plc, which was used by Kagoda to receive the embezzled funds.
Investigations by THISDAY have already established that Kagoda used a string of bank accounts from various CRDB bank branches in Dar es Salaam to receive payment of the Kagoda funds.
The big bosses at CRDB know exactly who withdrew the funds from the Kagoda bank accounts, said another well-placed source.
Although banks are required to observe a confidentiality clause with their clients, they are supposed to give full disclosure to the police during criminal investigations, the source added.
Insiders say Kyomuhendo submitted to CRDB Bank a legal document stating that he had transferred power of attorney to a certain individual, giving him (the individual) full authority over the companys bank accounts.
There should be clear and unequivocal records at CRDB Bank showing exactly who withdrew the 40bn/- from Kagodas bank accounts. I can assure you neither John Kyomuhendo nor Francis William had access to the money once it was deposited by the BoT in Kagodas bank accounts, said a source in the financial sector.
After a long holiday lull, public attention is expected to shift back to the Kisutu Resident Magistrates Court in Dar es Salaam from today to watch out for the next move in the EPA trials saga and other cases linked to the anti-grand corruption crusade.