10 questions that Tanil Somaiya should answer
Tanil Somaiya.
THISDAY REPORTER
Dar es Salaam
IT has been established that the Shivacom Group of Companies proprietor, Tanil Somaiya, and his former business partner, Shailesh Vithlani, are both alleged to have been behind dubious procurement contracts with the government, worth well over $240m (approx. 300bn/-), in the past few years.
According to well-placed sources familiar with the activities of the two businessmen, they were paid so handsomely by the government despite the fact that the actual value of goods supplied through them was more in the region of $90m (approx. 120bn/-) only.
But while Vithlani is understood to have since skipped the country and remains a wanted fugitive, Somaiya (pictured) has maintained his innocence over these dealings, and continues to conduct his business activities openly within the country.
Under the Shivacom Group of Companies incorporated in 2006, Tanil has branched out into various business interests including telecommunications, security, construction, advertising, promotion, and real estate.
Still, here are ten vital questions that the 44-year-old Somaiya is facing with regard to the corruption allegations now being levelled against him:
1. The Shailesh Vithlani connection
Tanil has admitted to being a close friend and business partner of the fugitive military radar deal agent for many years. In fact, the two - bosom buddies from childhood days in Mwanza - jointly registered a business company, Merlin International Limited, in 1986. They were joint sole shareholders of this company and another firm, Vithcorp, until January 2008, when Tanil announced he had ceased all his business connections with Vithlani.
But since Merlin International was the company used to push through all the afore-mentioned suspicious government deals, which were all done when Tanil and Shailesh were still business partners, how did Tanil personally benefit?
2 As joint shareholder, wasnt he an active and willing partner of Vithlani in all the deals involving Merlin International � and, for that matter, Vithcorp � another company understood to have been involved in various shady deals?
3. Military radar scandal
In 2006/07, both Somaiya and Vithlani - as directors of Merlin International Ltd - were interrogated by detectives from Britains Serious Fraud Office (SFO) before a magistrate at the Kisutu Resident Magistrates Court in Dar es Salaam. Tanil and Shailesh both admitted under oath that they held power of attorney over Envers Trading Corporation, a company that received illegal kickbacks amounting to $12m from BAE Systems, the manufacturer of the military radar purchased by the Tanzanian government in 2001/02. Just how much did Tanil receive from this transaction?
4. Military trucks deal
In 2004/05, Somaiya and Vithlani won a milti-million-dollar tender from the defence ministry for the supply of around 650 trucks and buses for the Tanzania Peoples Defence Forces (TPDF). While the government paid the suppliers the full amount of money since 2006, only 350 of the vehicles are understood to have have thus far arrived in the country. In applying for this tender, the two (Somaiya and Vithlani) fraudulently claimed to be owners of INCAR Tanzania Limited, the authorised dealer for IVECO trucks from Italy.
But it was only in 2006 that Somaiya/Vithlani actually bought INCAR Tanzania Ltd. The INCAR company file has, meanwhile, mysteriously vanished at the Business Registration and Licensing Authority offices. What was Tanils role in this apparent fraud involving the supply of military vehicles?
5. Military helicopters
Tanil and Shailesh are again alleged to have been involved in the supply of questionable helicopters to the defence ministry for the TPDF. In the first place, the duo are said to have supplied the aircraft even though they were not the chosen agents of the manufacturer, Agusta Bell. Secondly, two of the four helicopters supplied have already crashed within the country, leading to the loss of several lives. It has also been established that, apart from being overpriced, the helicopters are actually refurbished and designed for civilian use. What does Somaiya have to say about this deal?
6. Shivacom Tanzania
It is estimated that Shivacom Tanzania, a Vodacom local super dealer owned by Somaiya, registers a monthly turnover of around $15m, which translates into $180m (approx. 250bn/-) per year. Value added tax (VAT) due to the Tanzania Revenue Authority (TRA) should be around $36m (approx. 50bn/-) per year, yet the company is understood to have paid tax worth just $2m (approx. 2.8bn/-) in 2008. Is Shivacom engaged in tax evasion?
7. Purchase of companies/real estate
Over the past few years, Tanil has purchased a string of companies in the country. They include Ultimate Security Tanzania Ltd, Visual Magic Tanzania, Stefnat Engineering & Technical Services, Big Fish Graphics Tanzania, Estia Real Estate Tanzania, Alexander Forbes Insurance, Momentum Tanzania Limited, and several others. How did Tanil finance the purchases of all these companies and assets?
8. Expensive toys
Somaiya is said to have recently purchased a $400,000 (approx. 560m/-) Ferrari sports car from Italy, a $2.5m (approx. 4.5bn/-) yacht, a $350,000 (approx. 490m/-) Mercedes Benz, a private helicopter worth $6m (approx. 8bn/-), and other luxury assets. How much in taxes did Tanil actually pay for each individual item?
9. SFO Investigation
Britains Serious Fraud Office (SFO) has been officially investigating Somaiyas involvement in the military radar scandal. In his own opinion, why does he think he is considered a prime suspect by external detectives in the whole radar deal investigation?
10. When will Somaiya answer these and other such questions that are now on the lips of many Tanzanians regarding his alleged involvement in exceptionally grand corruption?