Tanzania jails former finance, mining ministers over corrupt gold deal

A Tanzanian court has sentenced two former ministers to three years in jail over corruption charges related to the award of a gold audit tender, according to court documents seen by Reuters news agency.

The convictions of former Finance Minister Basil Mramba and former Energy and Minerals Minister Daniel Yona signify two of the most high-profile convictions in the government's anti-graft drive.

Lawyers for the ex-ministers have said they plan to appeal.

FORMER ministers in the Third Phase Union Government, Basil Mramba (in suit, seated) and Daniel Yona (climbing), get set for the trip to a city prison after being sentenced to three years in jail at the Kisutu Magistrate’s Court in Dar es Salaam on Monday. (Photo by Staff Photographer)
Basil Mramba (in suit seated) and Daniel Yona (climbing) are headed to prison for three years

Businesses have always maintained that corruption is a major reason for the high cost of doing business in Tanzania.

Former Finance Ministry permanent secretary Gray Mgonja, who was jointly charged with the former ministers, was acquitted by the Kisutu Resident Magistrate's Court in Dar es Salaam.

Court documents showed the ex-ministers were accused of abusing their authority in 2002 by "arbitrarily" awarding a contract to audit gold production from Tanzania, Africa's fourth biggest producer.

The court also convicted Mramba, 75, and Yona, 76, of illegally extending an audit contract for two years after its expiry in 2005, disregarding a team set up to review the deal.


Mramba was also convicted of using his position as finance minister to unlawfully exempt a local subsidiary of the auditor of paying 11.75 billion Tanzanian shillings ($5.3 million) in government taxes.