BUNGE TEAM SAYS NO TO $350 DEAL ON AIRTIME IN TANZANIA !!!

Bunge team says No to $350m deal on airtime

Parliamentary Committee for Economic Affairs, Industry and Trade chairman Luhaga Mpina speaks at Bunge Offices in Dar es Salaam at a past event. PHOTO | FILE 

By The Citizen Reporter

Posted  Sunday, May 3  2015 at  13:08

In Summary

• Kigoma South MP David Kafulila (NCCR-Mageuzi) said it appeared TRA was trying to cover up details of the contract between Vodacom and Shivacom. He told TRA to ensure all details were available to clear the air since the matter was of public interest

Dar es Salaam. The $350 million scandal involving Vodacom Tanzania and one of its super dealers, Shivacom, turned even more sour yesterday when the Parliamentary Committee on Industry and Trade rejected an official explanation from the Tanzania Revenue Authority (TRA). The committee asked the tax collector to prepare a comprehensive report after rejecting a two-page document that TRA gave the committee on the grounds that there were no specific details.

The committee, chaired by Kisesa Member of Parliament Luhaga Mpina (CCM), said it needed more information as plenty of money was involved. It asked the TRA officials to deliver a comprehensive report before 15 May.

According to Mr. Mpina, the TRA report should cover the trade volume during their five-year pact, actual figures on the loss arising from fake airtime vouchers and tax paid on the vouchers.

A statement TRA tabled yesterday indicates that there have indeed been complaints about the bogus vouchers, but the amount quoted in the media does not match the complaints from swindled customers. TRA officials told the committee: “We admit that there has been duplication of airtime vouchers in the market. The figures that we have currently amount to Sh74.3 million. That amount came from the number of claims from customers.”

Mr Mpina wondered why TRA issued such a short statement when it had been asked for a detailed report as far back as February. He went on: “There are serious allegations here involving a lot of money and we need a deep explanation on it. What are you hiding? These are the issues that create tension.”

TRA and the Ministry of Finance were asked to follow-up the matter closely and come up with details about the contract between Vodacom and Shivacom.

Kigoma South MP David Kafulila (NCCR-Mageuzi) said it appeared TRA was trying to cover up details of the contract between Vodacom and Shivacom. The MP, who first spoke on the matter in Parliament some months ago, said TRA should ensure all details were available to clear the air since the matter was of public interest.

“Let’s not take this issue lightly,” he added. “Those involved should be named and and face legal action.”  When TRA comes before the committee on May 15, he expects the team to be fully prepared to answer all questions the committee and the general public want answered. In the meantime, the committee will also be seeking more information from stakeholders. 

Earlier in the week, Vodacom broke its silence on the alleged $350 million (Sh700 billion) fraud, saying in a carefully-worded statement that it has terminated a lucrative tender with Shivacom over “duplicate airtime vouchers” circulating on the market.

Vodacom denied that the vouchers were worth about Sh700 billion. It said the sum was grossly inflated but admitted that there was a problem.

According to Vodacom Tanzania’s chief officer responsible for Corporate Affairs, Ms. Georgia Mutagahywa, there was no multi-million dollar loss in the deal but there is potential for litigation with Shivacom.

An MP, who has keenly followed the scandal and claims to be an interested party, told The Citizen that Vodacom’s admission could lead to litigation by those who bought the fake airtime.

Speaking on condition that he was not named, he added: “I think the regulator (Tanzania Telecommunications Regulatory Authority) needs to investigate what really transpired because thousands of customers were affected.

Chris Chacha