Tanzanian Govt Asks for Extradition of Former Stanbic Bank CEO Bashir Awale
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Tags: Capital Markets and Securities Authority, CEO Bashir Awale, CEO Halakhe Waqo, Enterprise Growth Market Advisors, Ethics and Anti-Corruption Commission, Miss Tanzania Shose Sinare, Mr Sioi Sumari, President John Magufuli, Prevention and Combating Corruption Bureau, Prime Minister Edward Lowassa, Stanbic Bank Tanzania, Tanzania Revenue Authority
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Tanzania has asked Kenya to extradite former Stanbic Bank CEO Bashir Awale to face charges in the $600 million government bond bribery scandal, it has emerged.
Attorney General George Masaju has reportedly sought help from his Kenyan counterpart, Mr Githu Muigai, to bring back Mr Awale for questioning over the bribery scandal that rocked the final years of Jakaya President Kikwete’s government.
If extradited, Mr Awale will likely be joined in the case that has seen former Tanzania Revenue Authority (TRA) boss Harry Kitilya and two other prominent individuals charged and remanded since April, last year. Mr Kitilya, former Miss Tanzania Shose Sinare and Mr Sioi Sumari, all former officials of Stanbic bank, are languishing in jail awaiting hearing of their application for bail.
The three have been charged with money laundering, forgery, abuse of position, corruption, obtaining advantage and transfer of proceeds.
Yesterday, Kenyan media reported that President John Magufuli’s government wants Mr Awale to answer questions over the transaction of the deal in which he is said to have played a key role.
According to an investigation in the UK by the Serious Fraud Office, Mr Awale, Mr Kitilya and Ms Sinare were key players in pushing the deal through, leading to a $6 million (Sh12 billion) bribery scam.
Mr Awale was deported to Kenya soon after the 2015 General Election for allegedly being in the country illegally.
He was also accused of involvement in Tanzanian politics, and was said to be one of the chief behind-the-scenes strategists for the then Chadema presidential candidate, Mr Edward Lowassa.
Mr Awale had lived in Tanzania for many years and at one time served as Barclays Bank manager.
According to reports from Nairobi, Kenya’s Ethics and Anti-Corruption Commission (EACC) is assisting Tanzanian authorities to have a Kenyan at the centre of a Ksh600 million ($6 million) bribery scandal in Tanzania arrested and questioned.
President Magufuli’s administration has sought Kenya’s help to have Mr Awale, a former bank official, record a statement.
Mr Masaju wrote to Mr Muigai under mutual legal assistance (MLA) asking to have Mr Awale provide evidence two years after he was deported.
Mr Awale is accused of organising the money as an inducement to have state officials favour two banks when Tanzania floated an international bond in 2012.
“We have received the MLA and are working closely with the State Law office in line with the request. A team of investigators from Tanzania and Kenya has been put in place to implement the request,” EACC CEO Halakhe Waqo said.
The EACC boss, however, did not give details on the timelines of their work and if they had summoned the suspect.
Mr Awale was arrested in December 2015 and deported over claims of illegal stay. He was said to have been among the presidential campaign team members of former Prime Minister Edward Lowassa who lost to Magafuli.
Dar es Salam petitioned Nairobi to have Bashir record a witness statement outlining his alleged involvement in the scam. The Prevention and Combating Corruption Bureau (PCCB) seeks evidential materials that will assist in investigations and securing convictions, according to media reports in Kenya.
He is accused alongside former TRA Commissioner General Mr Kitilya, former bank managers Ms Sinare and Mr Sumari. The three Mr Awale was Stanbic Tanzania chief for seven years and was fired on August 19, 2013 for failing to co-operate in investigations. The bank later announced that he had left voluntarily.
“In order for the information and evidence requested to be admissible in the courts of Tanzania, its requested that any written statement or deposition be signed at the conclusion of each page and after the last word,” the MLA dated August 15, 2016 reads in part.
The government needed to raise funds for infrastructural requirements with Standard bank and Stanbic getting a mandate to raise the funds. During negotiations, the two banks quoted a combined fee of 1.4 per cent of gross proceeds raised.
In September 2012, Stanbic proposed the fee be raised to increase to 2.4 per cent, with the extra 1 per cent being paid to a ‘local partner’, a Tanzanian company called Enterprise Growth Market Advisors (EGMA).
The chairman and one of the directors of EGMA was Harry Kitilya, then TRA commissioner, while the managing director of EGMA was Dr Fratten Mboya, who was CEO of Capital Markets and Securities Authority (CMSA) between 1995 and 2011, and now deceased.
The room for conflict of interest was evident but Stanbic never addressed the issue. “It also appears that the Mr Awale and Ms Sinare intended the 1 per cent fee promised to EGMA to induce the first suspect (Harry Kitilya) and other members of the government to show favour to Stanbic and Standard Bank’s proposal.
EGMA opened a bank account with Stanbic to facilitate its activities in September 2012.”
