VZCZCXRO2828
RR RUEHDU RUEHMR RUEHRN
DE RUEHDR #0809 3360219
ZNY CCCCC ZZH
R 010219Z DEC 08
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC 8078
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHJB/AMEMBASSY BUJUMBURA 2732
RUEHKM/AMEMBASSY KAMPALA 3247
RUEHLGB/AMEMBASSY KIGALI 1176
RUEHNR/AMEMBASSY NAIROBI 1067
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHLMC/MCC WASHINGTON DC
RUEHDS/USMISSION USAU ADDIS ABABA

C O N F I D E N T I A L DAR ES SALAAM 000809 
 
SIPDIS 
 
AF/E FOR JLIDDLE; INR FOR FEHRENREICH; TREASURY OTA FOR D 
VAN KOCH; STATE PASS USAID EAST AFRICA OFFICE 
 
E.O. 12958: DECL: 11/30/2018 
TAGS: PGOV KDEM EFIN ECON TZ
SUBJECT: ANTI-CORRUPTION SHOCK AND AWE: EX-MINISTERS 
INDICTED AND JAILED 
 
REF: A. A. DAR ES SALAAM 493 
     ¶B. B. DAR ES SALAAM 778 
 
Classified By: Pol/Econ chief Carl B. Fox for reasons 1.4 (b) and (d) 
 
¶1. (C) Summary. Two former cabinet ministers, one of whom is 
a sitting MP, were brought to court November 25 to face 
charges in the second of a series of grand corruption cases. 
The arrest of the two ministers was an encouraging surprise 
for the public and the donor community, both of which had 
been largely skeptical of President Kikwete's determination 
to pursue senior political figures for public corruption. 
End Summary. 
 
¶2. (U) Basil Mramba and Daniel Yona face charges of abuse of 
authority and occasioning loss to the government of over Tsh 
11 billion (approx. USD 9 million).  The case concerns their 
actions in approving the procurement of a British company, 
Alex Stewart Assayers (ASA), for gold production assays.  The 
alleged abuses took place from 2002 to 2005, although ASA 
reportedly continued to receive payments through 2007. 
Mramba and Yona have been held in prison since their arrests 
because of their inability to meet the steep bail terms. 
 
¶3. (U) The indicted are stalwarts of the ruling CCM party, 
having held elected office since the 1980s.   Mramba was 
Minister of Industry and Trade from 1995 to 2000, then served 
as Minister of Finance from 2000 to 2005.  In the Kikwete 
administration, he was initially Minister of Infrastructure, 
then returned to run the Trade ministry until President 
Kikwete reshuffled the cabinet in February 2008.  He remains 
an elected Member of Parliament.  Yona was Minister of 
Finance from 1996 to 2000 and Minister of Energy and Minerals 
from 2002 to 2006. 
 
¶4.  (C) No other indictments have been announced in the ASA 
case.  Per ref a, the indictment list Prevention and 
Combating Corruption Bureau Director Edward Hoseah showed us 
in July included Gray Mgonja, Permanent Secretary in the 
Ministry of Finance.  Mgonja's retirement from government 
service, ostensibly for reaching compulsory retirement age, 
was announced November 29.  On December 1, Tanzanian press 
ran reports of a pending indictment against Mgonja. 
 
¶5. (SBU) The arrests occurred during the General Budget 
Support (GBS) Annual Review, which brings together the GOT 
and all GBS donors, and a day before the scheduled review of 
progress on corruption.  PCCB Director Hoseah, presenting the 
GOT's achievements, pointed out that several additional cases 
are complete and pending approval by the Director of Public 
Prosecutions.  GBS donors praised the arrests and those in 
the EPA case (see ref b) as sending a strong warning to those 
who would consider engaging in corrupt activity.  The 
indictments allowed the donors to rate GOT progress as 
"satisfactory" in fighting corruption, a determination that 
had been in doubt before November.  It appears that all GBS 
donors now plan to make their full planned budget 
contributions. 
 
¶6. (C) Hoseah subsequently told Poloff that he was confident 
the prosecutions - announced and forthcoming - would be 
successful.  He said PCCB had been careful to develop strong 
cases, since the targets were of such high profile.  He also 
said the Buzwagi Gold Mine case would be dismissed for lack 
of evidence. 
GREEN