TANZANIA MPS IN LONDON ON BAE PAYMET CASE
By Ayoub mzee -London
Today a group of Tanzania all party parliamentarians visited Britain as a part of a fact find mission on how the people of Tanzania will get their money as a result of a ruling in a case where the Arms company BAE Systems which pleaded guilty at a Cfrown Court in London to minor charges of false accounting relating to its controversial sale of military radar equipment to Tanzania in 1999. This group led by the Deputy speaker Hon Job Ndugai Mp comprised of Hon. Mussa Zungu MP Angelah Kairuki MP, John Cheyo MP, Ms Justina Shauri from the Parliament of Tanzania ,Grace Shangali ,assistant Director of Europe and America Department , Assah Mambene , Head of information -Foreign Affairs and Olivia Maboko ,desk officer (UK) at the Department of Europe and America The sale has been surrounded by allegations of corruption. During the court ruling it was stated that that British Aerospace Defense Systems Limited failed:"to keep accounting records which were sufficient to show and explain payments made pursuant to (a) a contract between Red Diamond Trading Limited and Envers Trading Corporation, (b) a further contract between British Aerospace (Operations) Limited and Merlin International Limited." Under the settlement, BAE pleaded guilty to not accounting accurately for $12.4m of payments made between 1999 and 2005 to a Tanzania-based businessman, Shailesh Vithlani, for his work as a marketing agent in helping to secure a £28 million radar contract from the Government of Tanzania in 1999.Mr Justice Bean said he accepted "there is no evidence that BAE was party to an agreement to corrupt". 
But pointed out that they "did not need to be" because the company had deliberately structured the payments to the agent via an offshore company controlled by BAE to another Panama-based company controlled by Mr Vithlani so that they were placed “at two or three removes from any shady activity”.Moreover, in the basis of the plea accompanying the agreement, BAE admitted the following:"Although it is not alleged that BAE plc was party to an agreement to corrupt, there was a high probablility that part of the $12.4 million [paid to the Tanzania agent] would be used in the negotiation process to favour British Aerospace Defence Systems Ltd."As Mr Justice Bean said of this high probability:"indeed there was.
But pointed out that they "did not need to be" because the company had deliberately structured the payments to the agent via an offshore company controlled by BAE to another Panama-based company controlled by Mr Vithlani so that they were placed “at two or three removes from any shady activity”.Moreover, in the basis of the plea accompanying the agreement, BAE admitted the following:"Although it is not alleged that BAE plc was party to an agreement to corrupt, there was a high probablility that part of the $12.4 million [paid to the Tanzania agent] would be used in the negotiation process to favour British Aerospace Defence Systems Ltd."As Mr Justice Bean said of this high probability:"indeed there was. Otherwise it is inexplicable . . . why the payments . . . exceeded $12m; and even more inexplicable why 97% of that money should have been channelled via . . . an offshore company controlled by BAE, and paid to . . . another offshore company controlled by Mr Vithlani. "The problem is that BAE has decline to pay the people of Tanzania the said sum citing corruption. Intead it has set up A panel of advisory board on Tanzania which will be chaired by Lord Cairns. Philippa Foster Back, OBE will serve as Deputy Chair. .This panel will advise them on how to pay Tanzania
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