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BoT overpaid advocate Mkono, says CAG report
TUMA ABDALLAH
Daily News; Monday,April 14, 2008 @00:03
THE Bank of Tanzania (BoT) made excessive payment of legal fees at the tune of 5bn/- to Mkono and Company advocates during the last financial year, as part of the charges for handling the Valambia case.
Controller and Auditor General (CAG), Ludovick Utouh, says in his report on the financial statements of Public Authorities and other bodies for the 2006/07 that
the amount is twice as much of what was paid in the previous fiscal year (2.9bn/-).
"This makes the total payment made as of June 30th 2006 reach 8.1bn/-", he says. According to the CAG, the amount paid is already more than 10 per cent of the 60bn/- the cases contingent liability to the government.
"The bank may end up paying excessively high legal fees on the case, considering the fact that neither the outcome nor the time frame the matter will take is known," he cautions.
Pamoja na hii hapa:
Mkono defends Sh7.9bn pay from BoT
The Citizen
By Mkinga Mkinga 2008-04-16
Mr Mkono made the remarks in a telephone interview from the US. 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.
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 dont 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.
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.
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.
Asked to comment on allegations that his office was being used to tarnish the image of Mr Mkono, Mr Utouh replied,
We havent stated anywhere that he is corrupt, have just presented the facts as we got them.