Publication: The Guardian Issued: Date: 2008-04-22 Reporter: David Leigh Reporter: Rob Evans

Tanzanian Minister Quits Over BAE Investigation

 

Publication 

The Guardian

Date 2008-04-22
Reporter David Leigh, Rob Evans
Web Link www.bday.co.za



A minister in Tanzania resigned yesterday, following disclosures in the Guardian that he was under investigation in worldwide corruption inquiries against the British arms giant BAE.

Reuters in Dar es Salaam reported a statement from the office of President Jakaya Kikwete, head of the impoverished east African state, that he had accepted the resignation of infrastructure minister Andrew Chenge.

According to the statement, Chenge said that in addition to allegations made against him, his love for his country and party had forced him to step aside.

A spokesman later told the BBC: "What we are hearing is mere allegations ... The reason why people are taking responsibility is because we have a very mature political system."

Chenge's resignation followed the identification by investigators of more than $1m (£504,000) in his offshore accounts in Jersey.

Chenge described the sums as "small change" on his return from accompanying the president on a visit to China.

The former attorney general denied that the cash was linked to secret commission payments made by BAE to promote its sale of a $40m radar system in 2001.

The bank accounts of public officials in Tanzania are required to be disclosed to an ethics secretariat. But yesterday's announcement did not answer questions raised by local media as to whether Chenge's deposits had in fact been registered.

The Serious Fraud Office in London has been investigating the Tanzanian deal from more than three years, along with the Tanzanian anti-corruption bureau in Dar es Salaam, and authorities in the Channel Islands and Switzerland.

Other allegations have been made against BAE in South Africa, the Czech Republic, Chile and Romania.

The Serious Fraud Office's new head, Richard Alderman, is due to tell the high court on Thursday whether ministers accept the court's ruling that the SFO should never have dropped its main BAE investigation, into Saudi Arabia.

Lord Justice Moses, with Lord Justice Sullivan, said that the "abject surrender" to threats from Saudi Arabia had been unlawful, and may have been merely a ministerial "pretext" to suppress a politically inconvenient criminal investigation.

However, ministers have so far refused to say that they accept the court's ruling. Instead, they have floated proposals to overturn it by changing the law, and allowing the attorney general to close down investigations merely if a minister declares that "national security" is involved.

If the SFO announces an intention to appeal on Thursday, this may defer a decision on reopening the Saudi investigation until the proposed new law passes through the UK parliament.

BAE has refused to comment on the Tanzanian allegations, other than to reiterate claims that it is cooperating with the SFO investigation.

BAE saw its lobbying succeed against the Saudi investigation, where lucrative future arms deals were in the pipeline. But the impoverished state of Tanzania has no comparable diplomatic weapons to wield: its budget depends on British aid.

About this article
This article appeared in the Guardian on Tuesday April 22 2008 on p7 of the UK news section. It was last updated at 00:07 on April 22 2008.


With acknowledgements to David Leigh, Rob Evans and The Guardian.