How BoT, TRA officials helped DECI

Some Bank of Tanzania (BoT) and Tanzania Revenue Authority (TRA) officials helped the Development Entrepreneurship for Community Initiative (DECI) to set up its operations in Tanzania, investigations have established.

It has been revealed that the BoT and TRA workers provided expert advice that enabled Deci operations to take off in 2007.

Investigations have further established that it was through advice from BoT and TRA employees that DECI directors managed expand the institution's operations without its being registered.

Speaking to our reporter,a member of the team that conducted investigations into DECI's operations said it had been established that the institution was able to set up a pyramid scheme with the tacit support of BoT and TRA officials.

"We have established close relations between some senior BoT and TRA employees on the one hand and DECI officials on the other," said the source, who did not want to be named because is not authorised reveal the team's findings to the media. He said the team's report was being finalised and would be handed over to relevant authorities in the next few days.

Contacted for comment yesterday, TRA Commissioner General Harry Kitillya said he would only act against dishonest TRA workers once the probe team presented him with their names. "I don't have names of the alleged dishonest workers who are said to be helping Deci to do what they are doing. Let me get the report and I will then be in a position to know what action will be taken," he said.

Mr Kitillya added that any TRA employee found to have acted inappropriately would be dealt with in accordance with laid-down disciplinary guidelines. The member of the investigation team said TRA workers had been assisting DECI operators on tax matters. "DECI was paying taxes as an institution that issues loans without taking deposits, but it has come to light the that the institution is indeed taking deposits from its customers," he said. TRA officials frequently visited DECI offices, and this prompted the police to start providing security at DECI branches in the belief that the institution was duly registered with the relevant authorities. "It is clear that TRA officials were aware of DECI operations because they were receiving taxes from them, but had decided to remain quiet," the source said. It was also established during the investigations that some BoT officials provided advice to DECI officials on how to go about their activities without raising eyebrows. "It was some BoT officials who at a later stage advised DECI to register their institution with the central bank," said the source, noting that the application was turned down because DECI officials did not clearly state what the institution's operations were. The source added that the names of the BoT and TRA officials who helped DECI in its activities would be handed over to relevant agencies for further action. Efforts to reach BoT governor Benno Ndulu for comment failed yesterday after his mobile phone went unanswered.

Revelations that some TRA workers are involved in DECI operations came a few weeks after President Jakaya Kikwete said some TRA employees were helping crooked traders to evade tax. The Head of State made the remarks during a surprise visit to the Dar es Salaam port. There have been mixed views on DECI operations with the institution's officials saying the institution was established to help poor people who could not secure bank loans. Many Deci members have also come out in force to support the institution and its operations. Yesterday, controversial opposition politician Christopher Mtikila warned the Government against 'intimidating' DECI operators and members. "They are threatening DECI managers so that they flee the country with members' contributions," Rev Mtikila told a public rally at Jangwani grounds in Dar es Salaam. The Business Registration and Licensing Agency (Brela) has revealed to our reporter the names of those behind the institution. The company's owners are jointly listed as Jackson Mtaresi, Dominick Kiggendi, Samwel Mtaresi and Timotheo ole Loiting'ye. The fifth shareholder is registered as DECI (Africa) Limited. Mr Jackson Mtaresi told our reporter Mr Kitillya added that any TRA employee found to have acted inappropriately would be dealt with in accordance with laid-down disciplinary guidelines. The member of the investigation team said TRA workers had been assisting DECI operators on tax matters. "DECI was paying taxes as an institution that issues loans without taking deposits, but it has come to light the that the institution is indeed taking deposits from its customers," he said. TRA officials frequently visited DECI offices, and this prompted the police to start providing security at DECI branches in the belief that the institution was duly registered with the relevant authorities. "It is clear that TRA officials were aware of DECI operations because they were receiving taxes from them, but had decided to remain quiet," the source said. It was also established during the investigations that some BoT officials provided advice to DECI officials on how to go about their activities without raising eyebrows. "It was some BoT officials who at a later stage advised DECI to register their institution with the central bank," said the source, noting that the application was turned down because DECI officials did not clearly state what the institution's operations were. The source added that the names of the BoT and TRA officials who helped DECI in its activities would be handed over to relevant agencies for further action. Efforts to reach BoT governor Benno Ndulu for comment failed yesterday after his mobile phone went unanswered. Revelations that some TRA workers are involved in DECI operations came a few weeks after President Jakaya Kikwete said some TRA employees were helping crooked traders to evade tax. The Head of State made the remarks during a surprise visit to the Dar es Salaam port. There have been mixed views on DECI operations with the institution's officials saying the institution was established to help poor people who could not secure bank loans. Many Deci members have also come out in force to support the institution and its operations. Yesterday, controversial opposition politician Christopher Mtikila warned the Government against 'intimidating' DECI operators and members. "They are threatening DECI managers so that they flee the country with members' contributions," Rev Mtikila told a public rally at Jangwani grounds in Dar es Salaam. The Business Registration and Licensing Agency (Brela) has revealed to our reporters the names of those behind the institution. The company's owners are jointly listed as Jackson Mtaresi, Dominick Kiggendi, Samwel Mtaresi and Timotheo ole Loiting'ye. The fifth shareholder is registered as DECI (Africa) Limited. Mr Jackson Mtaresi told our reporters that he was the company's board chairman and had 12,800 shares. He is followed by DECI (Africa) Limited with 8,000 shares and Mr Kiggendi, Mr Samwel Mtaresi and Mr ole Loiting'ye, who have 6,400 shares each. Mr ole Loiting'ye is also the firm's executive director. The records, however, do not show the nominal value of each share. DECI was incorporated as a private limited company on July 25, 2007. It has since collected billions of shillings among its members.