money laundering case changed

BY ROSEMARY MIRONDO

6th August 2010

The prosecution on Wednesday subsituted charges in a conspiracy and money laundering case of 338.9m/- involving six people, including Tanzania Revenue Authority (TRA) accountant Justice Katiti.

The public prosecutor read new charges to the accused before Resident Magistrate Aloyce Katemana.

Other accused in the case are Fortunatus Muganzi, Robert Mbetwa, former Barclay’s employee Godwin Paulla, Gidion Otullo and an employee of Tourism Promotion Services (Tanzania) Limited Company Joseph Rutto.

Principal State Attorney Fredrick Manyanda, assisted by Prevention and Combating of Corruption Bureau (PCCB) officer Benny Lincoln, read out the charges to the accused including conspiracy to steal 338,935,337/46 from Barclays Bank, forgery and money laundering.

On the new charges Rutto was exempted from the money laundering count.

It was alleged that between September 29 and October 6, 2008 in the city of Dar es Salaam, the accused conspired to steal from Barclays Bank.

It was further alleged that the accused Rutto and Paulla on the same date forged bank transfer forms, showing that Tourism Promotion Services Company had paid the said amount of money to East Africa Procurement Services Limited as furniture payment, while knowing it was false.

On the next count it was alleged that accused Katiti forged documents showing that Tourism Promotion Services Company had paid its revenue tax, while knowing it was not true.

Accused Katiti, Muganzi, Mbetwa, Otullo and Paulla are accused of transferring money from CRDB Bank Holland Branch owed by East Africa Procurement Services to Barclays and Kenya Commercial banks.

The accused pleaded not guilty of the charges.

Following the substitution of the charges, accused Rutto is no longer charged with money laundering count, which is not bailable.

Because of that, the court told him he could be bailed on conditions that he produces two sureties, who would produce in court 169m/- in cash or property equivalent to the same amount.

He was not able to meet bail conditions and the case was adjourned to August 9, this year.