Kitilya, former Miss Tanzania and head of investment banking at Stanbic Bank Shose Sinare and Sioi Solomon, the former Chief Legal Counsel of the bank were charged last week with eight counts, including
forgery, uttering false documents, obtaining $6m (about Sh12bn) by false pretences and money laundering of the Sh12bn.
forgery, uttering false documents, obtaining $6m (about Sh12bn) by false pretences and money laundering of the Sh12bn.
In his ruling, Principal Resident Magistrate Emilius Mchauru said money laundering offence was not subject to bail under the law.
However, Advocate Ringo Tenga representing the accused persons made an application to oppose the money laundering offence immediately after Magistrate Mchauru had delivered the ruling.
At the behest of the team of advocates, Alex Mgongolwa also requested the court to reject the money laundering offence, claiming that the count was fatally defective and therefore could not be treated as part of the law.
The accused had allegedly engaged themselves in a transaction involving $6m by transferring, withdrawing and depositing sums related to that transaction in various bank accounts maintained by Enterprise Growth Market advisors Limited (EGMA) at Stanbic Bank Tanzania Limited and KCB Bank Limited.
The prosecution alleged that the accused persons ought to have known that the said money was the proceeds of a predicated offence, which was forgery, apparently asking the court to cast out the defence lawyers’ request on grounds that it bore no impact in law.
The court adjourned the case to April 22 when it will deliver a ruling on the application to reject the money laundering offence.
According to the charge sheet it was alleged on between August 2013 and March 2013, the accused conspired to commit an offence of obtaining money by false pretences from the government.
On August 2, 2012 at Stanbic Bank Tanzania Limited headquarters in Kinondoni District the accused Sinare with intent to deceive, made a false Standard Bank’s financing proposal dated August 2, 2012 purporting to show that Standard Bank London in collaboration with Stanbic Bank Tanzania would raise a loan amounting to $550m for the government of Tanzania at a facilitation fee of 2.4 per cent of the principal amount, the fact she knew to be false.
The court heard that on August 13, 2012, Sinare fraudulently uttered the alleged false document at the Ministry of Finance within Ilala District.
It was alleged that on September 20, 2012, at Stanbic Bank, Sinare made a false mandate letter for proposed offering of $550m financing, purporting that Standard Bank PLC in collaboration with Stanbic Bank would raise the money for the government if engaged as a lead manager.
The prosecution alleged that the same accused person uttered the said letter at the office of the Ministry of Finance for similar purposes.
On November 5, 2012, at Stanbic Bank all the accused with intent to deceive, allegedly made a false collaboration agreement purporting to show that the bank has established a consortium to collaborate with EGMA.
The accused did so for the purpose, arrange for financing $550m to the government under which EGMA would arrange for negotiation and meeting involving the financing facilitate understanding on the technicalities of the financing to the government.
It is claimed further that EGMA was also to arrange for review finance documents and facilitate the provision of relevant documents or approval that would be required by relevant Tanzania authorities, the fact which the accused persons knew to be false.
According to the prosecution, in March 2013 in the city, Kitilya, Sinare and Solomon, with intent to defraud, obtained from the government $6m (about 12bn) by falsely pretending that the money was a facilitation fee payable to EGMA.
Such amount, it is alleged, was to facilitate together with Stanbic Bank Tanzania a loan to the government of the United Republic of Tanzania in the amount of $600m.
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