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Top officials in court over $43m Air Tanzania scandal

Former ATCL boss David Mattaka, ex-public procurement chief Ramadhani Mlinga charged with big-time corruption in an Airbus leasing scam dating back almost a decade ago
Former Air Tanzania Company Ltd (ATCL) managing director David Mattaka (in t-shirt) is pictured under tight police escort at the Kisutu Resident Magistrate�s Court in Dar es Salaam
 The former managing director of Air Tanzania Company Limited (ATCL), David Mattaka, and the ex-chief of the government’s public procurement watchdog were yesterday jointly charged in a $43 million corruption case involving the controversial leasing of a used Airbus plane for the national flag carrier nine years ago.

 
Mattaka and PPRA ex-chief executive officer Dr Ramadhani Mlinga both appeared in the same dock at the Kisutu Resident Magistrate’s Court in Dar es Salaam to answer separate counts of abuse of office, occasioning a loss of $43,267,702 (over 86bn/-) to the government (in the case of Mattaka); and outright forgery (Mlinga).
 
Also arraigned before principal resident magistrate Respicius Mwijage was former PPRA advocate Bertha Soka, who is charged with forgery alongside Mlinga.
 
According to the prosecution team led by principal state attorney Timon Vitalis, in October 2007 Mattaka intentionally abused his position as ATCL boss by signing an agreement for the national carrier to lease an Airbus A320-214 aircraft from Wallis Trading Inc., a Liberian company, without following proper tender procedures in compliance with public procurement laws.
 
This amounted to negligence on Mattaka’s part, and caused the government as guarantor of the deal to suffer a pecuniary loss of $42,459,316.12 which ATCL owed Wallis Trading Inc, the prosecution charged.
 
Mattaka is also alleged to have gone on to disregard technical advice in signing several lease acceptance certificates for the same aircraft, eventually causing ATCL as a company to suffer further losses of $772,402.08 (paid to the Aeromantenimiento, S.A company as maintenance service charges) and $35,984.82 (paid to Lantal Textiles, Inc for the purchase of upholstery, carpet and drape material for the same aircraft). 
 
The former ATCL chief is being charged under the Economic and Organized Crime Control Act (Cap.200 R.E 2002) and the Prevention and Combating of Corruption Act of 2007. According to the prosecution side, this makes him ineligible for bail at this point in the case.
 
“He (Mattaka) is charged with an economic offence and the amount involved is more than $42,999,” argued lead prosecutor Vitalis who was assisted by three detectives from the Prevention and Combating of Corruption Bureau (PCCB).
 
Mlinga and Soka are named in only the sixth and final count of the charge sheet, whereby the prosecution alleged that on March 19, 2008, with intent to deceive, the duo forged minutes purporting to show that the PPRA held a meeting to discuss an application for retrospective approval of the ATCL aircraft lease agreement.
 
Prosecutors said they did not have any objection to bail for the two former PPRA senior officials because their offence (forgery) is apparently bailable. Both Mlinga and Soka were therefore granted bail after managing to secure one reliable surety to sign a bond of 10 million/- each, while Mattaka was returned to remand prison.
 
None of the three accused were allowed to enter any official plea on the case because the matter they are charged with is normally heard by the High Court, or when the Director of Public Prosecutions (DPP) issues a special certificate for a lower court to handle the case.
 
 Magistrate Mwijage adjourned the case to March 29 when it comes up for mention as investigations are still in progress.
 
HOW THE GUARDIAN ON SUNDAY BROKE THE NEWS ON THE AIRBUS LEASING SCAM
The story on allegations of corruption in the Airbus leasing scandal first appeared in the Guardian on Sunday, our sister paper, more than four years ago. The paper published a series of investigative news articles on the matter, starting with its February 12, 2012 issue when a special front-page report revealed how President Jakaya Kikwete’s cabinet was royally duped over the deal. 
 
It noted that a report submitted to a parliamentary committee in January 2012 showed that “the total cost for leasing the used Airbus A320 is about $200 million, monies which are enough to buy two brand new aircraft of the same generation.”
 
The Guardian on Sunday investigation also uncovered that although the leasing deal needed cabinet approval before being sealed, top officials at Air Tanzania and the then Ministry of Infrastructure Development opted to sign the agreement without such approval. The cabinet chaired by the then president Kikwete was informed nine months after the agreement was signed, hence acting only as a “rubber stamp” to approve the deal. 
 
During the whole process, Mattaka was the ATCL chief executive officer, while Andrew Chenge served as infrastructure minister.
ATCL leased the Airbus A320-214 from Wallis Trading Inc of Liberia in 2007 for a period of six years (72 months), but the plane was in Air Tanzania’s hands for just 48 months, 41 of which saw it grounded for major technical maintenance in France.
 
The shoddy lease agreement stipulated that the leasing charges would remain the same whether the plane was flying or grounded, for any reason whatsoever.
 
An aviation expert said at the time it was inconceivable that the lease rate of $370,000 per month (over 800 million/- at current exchange rates) remained the same even if the plane was undergoing routine maintenance.
 
The ailing national flag carrier has been reduced to a poor financial state, operating just one aircraft even though it has over 200 employees on its payroll.

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