Mkono defends Sh7.9bn pay from BoT
By Mkinga Mkinga
Mr Mkono, who is also the Musoma Rural MP, made the remarks in a telephone interview from the US.
�The CAG claims have been repeated for two years now but the fact is that there are people who want to use his office to undermine me politically,� he said.
He was responding to the 2006/7 CAG report which shows that his law firm, Mkono & Co Advocates, was overpaid by the Bank of Tanzania during the 2006/7 financial year.
�When the CAG is saying that I was overpaid, where does he base his findings because all payments were done according to the agreement entered between the two parties,� Mr Mkono told The Citizen.
He his firm was international recognised, adding that this could be the reason why the figures �don�t add up for the CAG�.
�I charge $500 (Sh600,000) an hour�I won the tender for BoT legal provision services, and I am surprised to see that today that the CAG is questioning my payments,� he said.
Mr Mkono added: �I don�t understand it when somebody says Mkono and Company advocates was overpaid by BoT, while all payments were done according to the agreed contract.�
"BoT was required to pay $500 an hour for three lawyers working in Dar es Salaam and $1,000 (Sh1.2 million) per hour for four lawyers working in Ireland and Czechoslovakia. On average they all work 8 hours a day and that is how the Sh5 billion was reached,� he clarified.
He said while the CAG claimed that his firm was overpaid, BoT had contracted another law firm at the cost of $700 (Sh840,000) an hour for senior lawyers and $500 for junior ones.
�I am aware that there are people who are trying to use the CAG�s office to implicate me in financial scandals, but they will never win this battle.�
According to the CAG�s report, BoT made excessive payments in legal fees to the tune of Sh5 billion to Mkono and Co Advocates as part of the charges for the firm�s handling of the Valambhia case.
Mr Ludovick Utouh said when unveiling the report in Dodoma last week that the amount paid to the Dar es Salaam-based law firm last financial year was twice what the company was paid previous year.
The amount is just the cost of defending BoT in a single civil case after BoT was ordered to pay businessman Devram Valambhia Sh60 billion.
In 2005/6, BoT paid a total of Sh2.9 billion to Mkono and Co Advocates as the cost of defending the central bank in the case that has dragged on for a decade now.
CAG says that under normal circumstances, the amount has already exceeded 10 per cent of the sum being disputed by BoT. This is according to advocate remuneration procedures.
Mr Utouh said when reached for comment: �We reached the conclusion after doing a comparison of what he (Mr Mkono) was paid compared to the value of the suit which is Sh60 billion.�
�These figures just don�t make sense as payments have gone beyond ten per cent of the actual value of the suit.� The CAG added
Asked to comment on allegations that his office was being used to tarnish the image of Mr Mkono, Mr Utouh replied, �We haven�t stated anywhere that he is corrupt�we have just presented the facts as we got them.�