EPA Account Setup
The External Payments Arrears (EPA) account was established to tackle Tanzania’s import-oriented economy and the escalating import bills.
Fraudulent Activity
Fraudsters exploited the Notarised Deed of Assignments (NDA), intended to facilitate outstanding import-related external debts, to orchestrate their scheme.
The Unraveling
Audit Exposes Fraud
An audit conducted by international firm Ernst & Young brought the fraudulent activity to light, prompting a confirmation from the State House.
Political Backlash
Opposition party Chadema, spearheaded by Dr. Willbroad Slaa, ignited parliamentary debates and public rallies, demanding accountability.
Investigation and Fallout
Tripartite Team Formed
President Kikwete convened a team to investigate and pursue legal action against those involved in the scandal.
Repercussions
As a result of the investigation, BoT Governor Dr. Daudi Balali was dismissed, and assets belonging to suspects were seized.
Recovery Efforts
The government embarked on initiatives to recover misappropriated funds and confiscated properties, aiming to rectify the damage caused by the scandal.
The EPA scandal serves as a stark reminder of the governance and accountability challenges faced by Tanzania. While strides are being made to combat corruption, the aftermath of such scandals continues to resonate. Upholding transparency and diligence is crucial in safeguarding national resources and preserving public trust.
