[wanabidii]

A former
ambassador to Italy, Prof
Costa Mahalu, was
yesterday acquitted of
charges of defrauding the
government Sh2.5 billion,
and immediately said he
would not sue for
malicious prosecution or
damages.
The Kisutu Resident
Magistrate's Court said
the prosecution had failed
to prove that Prof
Mahalu, who was jointly
charged with a former
official at Tanzania's
embassy in Rome, Ms
Grace Martin, used forged
documents to mislead the
government into buying
the embassy building at a
highly inflated price.
Resident Magistrate-in-
Charge Ilvin Mugeta said
the purchase of the
building followed
procedure and Prof
Mahalu had obtained the
requisite permission to
execute the transaction
on the government's
behalf.
Shortly after he was
acquitted, joyful Prof
Mahalu said: "Let things
end here. I don't have any
intention of suing the
government for malicious
prosecution or damages,"
he said.
He added: "I thank you all
so much. I love you all.
God always defends the
beleaguered. Justice
always comes from God…
and today we are all
witnesses God has made
justice done," he told The
Citizen.
The Prevention and
Combating of Corruption
Bureau (PCCB) arraigned
the former envoy in 2007
on among other charges,
conspiracy and stealing
Sh2.5 billion through the
use of two contracts to
buy the embassy building
in Rome, Italy. According
to PCCB, the investigation
in Rome showed the two
contracts were
deliberately prepared to
swindle the extra 2 million
euros from the
government.
The first contract show
the sale price of the
chancery was 1,032,913
euros while the second
put it at Euro 3,098,741
It was further alleged that
procedures of acquiring
the building like public
procurement regulations
were flagrantly flawed to
effect the alleged theft.
But yesterday, Mr Mugeta
said he had found no
direct evidence to
substantiate allegations
that the use of two
contracts amounted to
criminal offence and were
meant to swindle
government's money.
"The argument was self
defeating," said the
magistrate, adding:
"Prosecution might have
deliberately omitted to
tender some crucial
exhibits which confirmed
the price to avoid the
price based on a valuation
report done by a
Tanzanian officer," he
said.
A Tanzanian valuation
expert was dispatched to
Rome to inspect the
building and indicated
that the prices of the
building could be
negotiated by up to 5
million euros.
The magistrate wondered
why the prosecution did
not to tender as evidence
the report of a person
who was sent to Rome
where he allegedly
discovered that the price
had been inflated.
"By failing to tender the
documents the
prosecution failed to
produce very crucial
documents in this case.
Their claims cannot be
substantiated and the use
of two contracts did not
amount to criminal
offence in this case," he
said.
During the trial,
prosecution also alleged
that the former diplomat
was aware that the
Tanzanian law did not
allow him to use two
contracts to purchase the
building but proceeded
with the transaction for ill
purposes.
But the magistrate sided
with the defence that Prof
Mahalu was given legal
powers to handle financial
transaction of such nature
including the purchase of
the building. "Available
evidence shows the
embassy in Rome was
ordered to negotiate the
price with the broker by
the foreign ministry basing
on the report of a special
valuer from the land
ministry who put the price
at over 5million Euros," he
said.
The magistrate said the
ministry was made aware
of the purchasing price
and that's why they
transferred the money for
that purpose.
"The first accused (Prof
Mahalu) was authorised
to purchase the building
by powers of attorney. If
this was not the case the
government would have
not sent the money for
that purpose," he said.
On the prosecution
argument that it was
unlawful and against the
practice in Tanzania to use
two contracts to purchase
the building, the
magistrate said: "Once the
government agreed and
released the money for
the purchase it means it
was satisfied with
modalities used to arrive
at the purchasing price in
Italy."
"There is also no evidence
the money actually came
back into possession of
the accused. To say that
the procedures were not
followed in the process of
purchasing the chancery
in Rome is like pulling the
trigger of a cocked pistol
with a barrel pointing at
your chest," he said.
"I think procedures for
purchasing the building
were violated at the
ministry not in Rome as
the prosecution alleges.
There is no evidence they
interfered with the
compliance with the
procedures at the
ministry," he said.
Since the accused are
neither charged with
abuse of office nor
violation of procurement
laws, the magistrate said it
was meaningless to dwell
into the matter.
Concerning the second
accused Ms Grace Martin,
the magistrate said he has
failed to understand why
she was charged in the
first place as there wasn't
a grain of evidence linking
her with the charges.
"I have failed to
appreciate why the
second accused was
charged and that is why,
throughout this judgment,
I have refrained from
touching on her evidence
in defence," he said.
Relatives and friends of
the accused who jammed
the courtroom sobbed
quietly while others could
not hold back tears as the
magistrate pronounced
the accused innocent and
free.
Former President
Benjamin Mkapa who
inaugurated the embassy
building in 2003 was
among seven witnesses
who stood in the witness
box in defence of the
former diplomat.
He told the court that his
government sanctioned
the use of two contracts
to purchase the building
for the best interest of
the nation.
He described him a person
of impeccable character,
sincere, honest, obedient
and hard worker.

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