7 Apr 2009
7.4.09
Evarist Chahali
BOT, DECI, PONZI SCHEME
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Meanwhile, BoT and other regulatory agencies came under the spotlight yesterday, with some Deci members and other stakeholders querying why it had taken them "so long" to establish irregularities in Deci's operations.
A source in the team that investigated Deci's operations told The Citizen yesterday that tens of millions of shillings collected from members were actually deposited in personal bank accounts operated by Deci officials.
"We wanted to know whether Deci had a company account, and who were their bankers, and they told us that the company did not have a bank account opened in its name," said the source, who did not want to be named because he was not authorised to reveal the probe team's findings to the media.
He added that Deci officials told investigators that money collected from members was kept in their (officials) personal accounts.
The probe team comprised officials from the Directorate of Criminal Investigations, Financial Intelligence Unit (FIU) of the Finance and Economic Affairs ministry, Tanzania Intelligence and Security Services, Bank of Tanzania (BoT) and Capital Markets and Securities Authority (CMSA).
It was also established that Deci was using a letter from BoT to gain the trust of people who wanted to join its pyramid scheme, and convince them that the company was operating legally.
The source said the letter was in response to Deci's application for a licence, adding that the central bank directed the firm to seek registration from the Industries and Commerce ministry.
BoT's director of banking supervision, Mr Joseph Massawe, said yesterday that Deci sent an application to the central bank two years ago seeking registration as an institution that would be issuing loans without taking deposits.
He said BoT advised Deci officials to seek registration from the relevant ministry.
"They have been misusing our letter of no objection. This matter is now in police hands. We have given them all the details on Deci's operations," Mr Massawe said.
Meanwhile, there was tension at Deci's headquarters in Mabibo, Dar es Salaam, following reports that many people who had invested in the pyramid scheme could lose their money.
People could be seen standing in groups discussing the latest developments in low tones.
However, some were hopeful, maintaining that Tanzanians were being deliberately misled into believing that Deci was a criminal outfit.
Others queried why it had taken BoT three years to realise that Deci was operating illegally.
Mr Eliseus Losulie described Deci as a saviour of poor people "who have for many years been exploited by other financial institutions, including banks".
"We reject BoT's announcement made through the media, we have already invested a lot of money here...where were they since 2007? They are liars," he said.
Another member said there was a need conduct a public awareness campaign to make those who were "demonising" Deci understand its operations.
"May be we should raise money and pay for airtime at a television station so that our leaders can explain what Deci is all about," he suggested.
Long queues could be seen outside the Deci offices at Mabibo yesterday as people waited to deposit money.
A man came out of the offices, displaying two receipts, and declaring that there was no one to stop Deci operations except God.
"Here are my receipts, I have just deposited my money. I don't care what BoT says, "we are tired of these politics which will not take us anywhere," he said.
Efforts by The Citizen to reach Deci officials failed as their mobile phones went unanswered.
At its Mabibo headquarters in Dar es Salaam, the company is said to be receiving deposits from an estimated 3,000 people every day.
Deci officials told The Citizen last week that they had paid out over Sh35 billion in "profits" and registered more than 500,000 members since last year when their operations began picking up.
They dismissed reports that the firm was running an illegal scheme as "unfounded and witch-hunting", but could not explain where the money to pay the huge interests came from.

By The Citizen Reporter
Tanzania's economy will grow by between 5 to 6.1 per cent this year, according to a top BoT official.
BoT director of policy Joseph Massawe said projections by the IMF were "ill advised".
Dr Massawe said Tanzania's economy had not been much affected by the global financial crisis, adding that the effects could be more pronounced in the coming months.
Some economists have also disputed the Bretton Woods institution's forecasts, saying they are too pessimistic and give the wrong impression of the country's economic outlook.
An IMF delegation said early last week the country's economy would grow by between four and five per cent this year due to the global downturn.
But commenting on the sidelines of the annual poverty alleviation meeting in Dar es Salaam recently, local economists said the projections had missed the point since the fundamentals of the country's economy remain sound.
An economic analyst, Prof Haidari Amani of the Economic and Social Research Foundation, said the global financier�s figures were questionable because the economic crisis had no direct impact on the country's economy.
What factors have the IMF used to make their projections because Tanzania's economy depends mostly on agriculture. The four per cent growth can only be possible if agricultural production falls,"he said.
Prof Amani said there were indications that most troubled Western economies, especially the US and in West Europe, would stabilise by end of year, 'making it impossible for Tanzania to get worse.'
Last December, the Government projected a 7.1 per cent economic growth for 2009, which Finance and Economic Affairs minister Mustafa Mkulo last week revised down to 6.5 per cent.
Other economic analysts have also disputed the IMF figures saying Tanzania's economic outlook seemed strong enough to survive the recession this year.
BoT said recently banks in the country were well capitalised and although interest rates have edged up marginally, there has not been any dramatic disruptions witnessed in the country.
And on the sidelines of the Research on Poverty Alleviation (Repoa) annual meeting in Dar es Salaam, local economists said the global crisis has had a minimal effect on the country.

Martha Karua, Kenya’s Justice and Constitutional Affairs minister has resigned from the Grand Coalition Government.
“I will continue to participate in nation building as a Member of Parliament and a leader," Ms Karua told a Press conference in Nairobi on Monday.
“I will now be able to totally disagree with anything that is anti-reform,” she said.
She made good her threat to quit only a day after declaring “enough is enough” after attending a church service at the Anglican Church in Nairobi.
She has said that she decided to resign because of frustrations in discharging her duties.
President Kibaki appointed five new High Court judges on Friday last week and promoted two others to the Court of Appeal. She said she was not aware of the President’s move.
As the minister in charge of Justice, Ms Karua expected to be consulted before new judges were appointed.
“If my hands are tied and the Judiciary continues to be used as a place where people sacked from parastatals are recycled, the agenda is forestalled and all reforms are annihilated, then I better leave and fights for the rights of ordinary mwananchi,” she said after the appointments.
She becomes the first Kenyan minister to resign from the Grand Coalition Government.
The Government, which brought together President Kibaki and Prime Minister Raila Odiinga, was formed to help end post election violence following a disputed presidential election.
The opposition Orange Democratic Movement said that its candidate, Raila Odinga, was denied victory through rigging and claimed it could not accept results of a stolen election.
The violence that broke out left 1,133 people dead and a further 350,000 displaced.
Ms Karua had accused the Judiciary of being lethargic and anti-reform and laid the blame on Chief Justice Evans Gicheru.
She lashed out at the CJ accusing him of blocking judicial reforms in the country and called for his removal.
However, President Kibaki has since expressed his confidence at the Chief Justice and dismissed a petition from the Law Society of Kenya calling for the CJ’s ouster.
SOURCE:Daily Nation

THISDAY REPORTER
Dar es Salaam
POVERTY levels continue to be on the rise in Tanzania despite large sums of monetary aid being regularly poured into the country from external sources, top financial institutions have asserted in Dar es Salaam.
Meeting in the city over the weekend, officials of the World Bank, African Development Bank (AfDB), and the Ministry of Finance and Economic Affairs were in consensus that statistical records of Tanzania’s received aid vis-a-vis poverty alleviation over the past decade were far from encouraging.
It was noted that while the country has enjoyed substantial Overseas Development Assistance (ODA) funding since 2001, poverty has only been marginally reduced, from 35.7 to 33.6 per cent, while the total number of Tanzanians living in poverty has increased by about 1.6 million people.
’’In this situation, many people ask themselves what is being done to [the aid] for poverty reduction and economic growth that (is supposed to) benefit all Tanzanians,’’ said the World Bank Country Director for Burundi, Tanzania and Uganda, John McIntire.
His views were more or less echoed by the AfDB country Representative to Tanzania, Sipho Moyo, who remarked: ’’The focus now must be on results, notably in light of the upcoming mid-term review...(AfDB) shareholders are increasingly looking for higher impact on the ground.’’
The three institutions were holding the ’Country Portfolio Performance Review (CPPR)’ for Tanzania, where operations financed by the World Bank and AfDB were jointly assessed.
The tripartite meeting was geared towards promoting effective project management, raising disbursement rates, and ’’enhancing Tanzania’s absorptive capacity for additional financing,’’ according to a joint statement issued afterwards.
Currently, there are a total of 23 ongoing World Bank-financed projects in Tanzania, representing total commitments of some $2bn, out of which $968m has already been disbursed. Meanwhile, the AfDB has 18 ongoing projects in the country, with a committed amount of $854m.
Leading the Tanzanian delegation to the meeting, the Permanent Secretary in the Ministry of Finance and Economic Affairs, Ramadhani Khijjah, said implementation of these projects has encountered various challenges including institutional reforms, inadequate financial resources, untimely release of funds, and bureaucratic procurement procedures, ’’just to mention a few.’’
The CPPR exercise is part of efforts to harmonize the process of funds disbursement to reduce transactional costs and enhance the impact of aid on particular countries.
According to recent research findings, Tanzanians at the grassroots level have of late become increasingly disgruntled about the way government authorities are using public resources and unimpressed by financial information provided by such authorities.
Although the government has invested heavily in the Local Government Reform Programme (LGRP) aimed at strengthening local authorities for effective service delivery especially to rural communities, most interviewed citizens insisted that the said reforms have had no impact on their lives.
Over 75 per cent of respondents expressed outright dissatisfaction over the spending of public resources, researchers Bahati Geuzye and Hugh Frasier asserted.
According to their findings, the dissatisfied respondents said it was not clear how public resources are used because the projects executed tend to yield poor quality outputs, while some projects have not even been completed.
They even voiced strong suspicions of corruption being linked to the funds usage.
Asked by the researchers what actions they preferred to take in a bid to rectify matters, the respondents said they often raised complaints through suggestion boxes, media channels, public meetings, direct to council executive directors, and even as far as State House in some cases.
However, it was noted that ’’about 89 per cent of the respondents said their concerns have never been taken seriously, even after taking these actions.’’
The researchers also concluded that financial transparency in local government authorities (LGAs) is inadequate, with only a small portion of citizens getting access to financial information released by the councils through noticeboard displays.
The research, aimed at gauging the effectiveness of financial accountability at local government level, covered 10 randomly selected districts in the country; Kinondoni, Mkuranga, Bagamoyo, Tanga, Lushoto, Kilosa, Kibaha, Korogwe, Morogoro, and the Dar es Salaam City Council.
Some 810 Tanzanians participated as respondents.
Recommendations put forward by the researchers for improved financial accountability include strengthened planning and budgeting, improved incentives to councilors and council staff, and increased support from the central government.
6 Apr 2009
MIMI SI MWANASIASA JAPO MALENGO YANGU YA BAADAYE NI KUWA MCHAMBUZI WA SIASA (POLITICAL ANALYST).BINAFSI SIICHUKII CCM ILA NAKERWA NA BAADHI YA KASUMBA ZILIZOOTA MIZIZI NDANI YA CHAMA HICHO KIKONGWE.NA KASUMBA KUU INAYONITATIZA KUHUSIANA NA CHAMA HICHO NI UNAFIKI.
SWALI LA MSINGI HAPA NI JE KWA KUKOMESHA MALUMBANO HAYO NDIO UFUMBUZI WA "KINACHOLUMBANIWA" UTAKUWA UMEPATIKANA?BUSARA NDOGO TU INAWEZA KUTUELEZA KWAMBA MTOTO ANAPOLIA INAWEZA KUASHIRIA KUWA ANA TATIZO (NJAA,KIU,ANAUMWA,NK).KUMFINYA MTOTO HUYO ANYAMAZE BADALA YA KUCHUNGUZA KINACHOMLIZA HAIWEZI KUWA SOLUTION YA TATIZO.
Wenyeviti wastaafu wa CCM waonya
Wenyeviti wastaafu wa mikoa wa Chama Cha Mapinduzi (CCM) wamevunja ukimya na kuwataka viongozi wa chama hicho wanaotaka kuyatumia mapambano dhidi ya rushwa kama mtaji wa kisiasa na kujipatia umaarufu, kuacha mara moja. Sambamba na hilo, wazee hao wametaka mapambano dhidi ya rushwa yasiwe kichaka cha kuficha ubovu wa uongozi na kushindwa kuwajibika. Akizungumza kwa niaba ya wenyeviti wastaafu wa chama hicho Dar es Salaam jana, Mwenyekiti mstaafu wa Mkoa wa Dodoma, Pancras Ndejembi alisema mapambano dhidi ya rushwa ni ya CCM na si mwanachama binafsi au kikundi cha wanachama wachache.
“Tunashuhudia baadhi ya viongozi wa CCM kurushiana maneno wenyewe kwa wenyewe kwa kutaka kuonyeshana nani zaidi na nani ni vinara kuliko wengine katika mapambano dhidi ya rushwa, hii si sawa,” alisema Ndejembi aliyewahi kuwa Mwenyekiti wa CCM Tanzania. “Tusingependa kuona mapambano haya yanatumiwa kama njia ya kujipatia umaarufu binafsi, mwenyekiti wetu Rais Kikwete ambaye ndiye jemedari wa mapambano haya humsikii anafanya hivyo na sisi wengine tusifanye hivyo…. kama wewe ni kiongozi na hutekelezi wajibu wako kwa wapiga kura wako wakikuuliza uko wapi, usisingizie kupigwa vita na mafisadi,” walionya.
Ndejembi aliyeambatana na wenyeviti wastaafu Hemed Mkali (Dar es Salaam), Tasil Mgoda (Iringa) na Jumanne Mangara (Pwani), alisema wazee hao wamesikitishwa na malumbano ya hadharani baina ya viongozi wa CCM ambao wengine wa ngazi ya juu ya uongozi ndani ya chama. Alisema tabia inayoonyeshwa na viongozi hao ya kushutumiana, kunyoosheana vidole, kuwekeana visasi, kuonyeshana ubabe na kuwekeana nadhiri ya kupambana baina ya viongozi, kunadhoofisha na kukipunguzia heshima chama hicho.
“Lakini pia kufanya hivyo hadharani, kwa nia ya kutaka kuungwa mkono katika shutuma na visasi hivyo kunajenga chuki, uhasama na migawanyiko katika jamii, viongozi hatupaswi kuwajaza watu chuki na uhasama ndani ya mioyo yao,” alisema Ndejembi kwa niaba ya wenzake na kutaka neno ufisadi lisitumiwe kuelekea kwenye Uchaguzi Mkuu wa mwakani. Alisema kumuita mtu fisadi kwenye vyombo vya habari haitoshi katika kushinda mapambano dhidi ya rushwa, bali watu waipigie kelele serikali iimarishe taasisi na vyombo vya kupambana na rushwa kama Polisi, Taasisi ya Kuzuia na Kupambana na Rushwa (Takukuru) na Mahakama ambako watuhumiwa wanafikishwa.
Licha ya kuwapo malumbano baina ya viongozi hao wa CCM, wastaafu hao walisema kuhitilafiana ni kitu cha kawaida na kamwe watu wasitarajie chama hicho kitameguka. Wastaafu hao walieleza kumuunga mkono Rais Jakaya Kikwete iwapo atagombea tena urais mwakani na kutaka watu wengine wamuunge mkono, kwa maelezo kuwa anafaa kuongoza nchi. Walitoa sababu za kumuunga mkono kuwa ni kukubalika na anaowaongoza, anawapenda watu wote, mvumilivu, mkereketwa wa maendeleo ya wananchi na hana jazba.
Wazee hao walisema wameamua kuzungumza na waandishi wa habari kuhusu mambo hayo ili ujumbe uwafikie viongozi, wanachama na mashabiki wa CCM, lakini yote hayo waliyoyaeleza wameshayawasilisha kwenye vikao wanavyoshiriki vya matawi na mashina na wamezungumza na viongozi wa sasa wa chamahicho. Ingawa wastaafu hao hawakuwataja kwa majina viongozi wa CCM waliolumbana hadharani, lakini hivi karibuni Mbunge wa Kyela, Dk. Harrison Mwakyembe ambaye ni mwanahisa wa Kampuni ya kuzalisha umeme wa upepo ya East Africa Power Pool, amelumbana na Mbunge wa Igunga, Rostam Aziz.
Dk. Mwakyembe anadai Rostam anatumia vyombo vyake vya habari kumchafua huku Rostam akitaka mbunge huyo ambaye kitaaluma ni mwanasheria na mwandishi wa habari, kuelezea mgongano wa maslahi wakati alipochaguliwa kuwa Makamu Mwenyekiti wa Kamati ya Bunge ya Nishati na Madini. Mbali na wazee hao, pia Makamu Mwenyekiti mstaafu wa CCM Tanzania Bara ambaye ni Mbunge wa Mtera, John Malecela alitaka malumbano hayo yakome, kwani hayana faida kwa mwananchi na wahusika watumie vyombo husika vya chama kufikisha malalamiko yao.
CHANZO: HabariLeo
6.4.09
Evarist Chahali
IMF, POVERTY, TANZANIAN ECONOMY
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The projection by the International Monetary Fund (IMF) that Tanzania�s economy will grow by four per cent this year has been challenged by local economists.
Some economists are arguing that the Bretton Woods institution's forecasts are too pessimistic and give the wrong impression of the country's economic outlook.
An IMF visiting delegation said early this week the country's economy would grow by between four and five per cent this year due to the global downturn.
But commenting on the sidelines of the annual poverty alleviation meeting in Dar es Salaam recently, local economists said the projections had missed the point since the fundamentals of the country's economy remain sound.

An economic analyst, Prof Haidery Amani of the Economic and Social Research Foundation, said the global financier's figures were questionable because the economic crisis had no direct impact on the country's economy.
What factors have the IMF used to make their projections because Tanzania's economy depends mostly on agriculture. The four per cent growth can only be possible if agricultural production falls, he said.
>

Prof Amani said there were indications that most troubled Western economies, especially the US and in West Europe, would stabilise by end of year, making it impossible for Tanzania to get worse.
Last December, the Government projected a 7.1 per cent economic growth for 2009, which Finance and Economic Affairs minister Mustafa Mkulo last week revised down to 6.5 per cent.
Other economic analysts have also disputed the IMF figures saying Tanzania's economic outlook seemed strong enough to survive the recession this year.
>

The Bank of Tanzania (BoT) said recently banks in the country were well capitalised and although interest rates have edged up marginally, there has not been any dramatic disruptions witnessed in the country.
And on the sidelines of the Research on Poverty Alleviation (Repoa) annual meeting in Dar es Salaam, local economists said the global crisis has had a minimal effect on the country.
They argued that the country's economy was not directly integrated with global economies, a situation which spared the country when financial giants in the developed world collapsed.
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I don't think the country's economic growth will fall to such lower levels despite the current economic crisis. But I also don�t think the economy will grow beyond six per cent, Repoa executive director Prof Joseph Semboja said.
The Planning Commission's permanent secretary, Ambassador Charles Mutalemwa, said the IMF projections were too pessimistic.
Dr Kassim Kulindwa, a senior research fellow with the University of Dar es Salaam's Economic Research Bureau, said variations in figures were expected because multilateral bodies and local economic researchers used different economic growth indicators.

There are often differences on various economic figures between multilateral institutions and local research institutions, for example, on such issues as per capita Gross National Product. The problem is they use different databases, he said.
Debate on how much the global economic crisis has affected Tanzania is still raging on with no common position between the Government and private sector.
Some industries depending heavily on the export market have obviously been hit hard by the crisis due to falling demand.
Despite assurance by the Government, there have been signs that sectors like agriculture, mining and energy became the immediate casualties of the downturn as some big firms closely linked to these industries wound up businesses.
Big employers who have to shut down their operations have attributed this to declining business and cash flow, as their export markets shrink.
President Jakaya Kikwete recently appointed a special team to study the effects of the recession on the country.
The taskforce chaired by Bank of Tanzania (BoT) governor Benno Ndulu is expected to present its preliminary findings later this month, according to Finance and Economic Affairs minister Mkulo.
But in June last year, almost six months into the recession that started December 2007, the minister told parliament that Tanzania�s economy would grow by 7.8 per cent in 2009.
That figure was revised down to 7.1 in December last year and then 6.5 per cent last week amid the global crisis that has seen the collapse of big Western companies and tumbling world markets.
Economists fear if the recession persists, it would reduce foreign direct investments (FDIs) in the country, cause cuts in official direct assistance (ODA) and slow foreign remittances from Tanzanians living abroad.
But despite being the worst affected by the economic downturn, major western donors said they would not cut aid to developing countries, giving hope to countries like Tanzania.
However, some analysts say such promises are not dependable, therefore, the developing world should find its own strategies to survive the global crisis.
�It is time for Tanzania to shift towards mobilising its own resources for development. The country has abundant natural wealth that must be tapped to stop this donor dependence, Prof Ophelia Mascarenhas, a retired UDSM professor, said.
She said the global crisis should be a lesson to the country that dependence on donor funding was not a lasting solution.
For instance, instead of giving tax incentives to foreigners for up to 10 years why don�t we do the same thing to locals for even at least two years? she queried.

5 Apr 2009
5.4.09
Evarist Chahali
MAFISADI
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