In this deal, BAE was to supply Tanzania with an Air Traffic Control (ATC) system to serve the country's eight -yes only 8- military aircraft!

The ATC system in question was described by the United Nation's International Civil Aviation Organisation (ICAO) as being a dated technology. The agency said upgrading the system to meet civil aviation demands would cost Tanzanians millions of dollars. The agency further argued that Tanzania's needs would have been met with a $5m to $7m civil aviation system.

What is interesting is that the deal was pushed by none other than UK Prime Minister Tony Blair. Blair's argument was that the deal was good for the UK because it would protect 250 British jobs on the Isle of Wight that were at stake! (Who gives a damn about Tanzania's Wanjiku who has to go to bed on an empty stomach to make such a purchase!)

Even more interesting is the revelation by a Tanzanian middleman Sailesh Vithlani that BAE paid him $12m (30% of the contractual amount) through a Swiss bank. The payment was done through Red Diamond Trading -one of BAE's covert offshore companies registered in the British Virgin Islands. Red Diamond is the same outfit alleged to have given  Sterling pound 1M to the late Chilean dictator Pinochet.

Vithlani's business buddy Tanil Somaiya (no relation to Ketan Somaia) collaborated the bribery allegation saying they (Somaiya and Vithlani) were paid 1% of the contractual amount to make sure the deal was signed and awarded to Vithlani's Merlin International.

Tanil Somaiya Left Donating bikes to Tanzanian Police

The World Bank and IMF refused to extend a loan to Tanzania for this purchase claiming that it was waste of resources. This, however, did not stop the deal. The UK's Barclays Bank stepped in and financed it at interest rates that were much higher than those charged by the Bretton Woods institutions. In the end, Tanzanians were left with a huge bill stemming from the UK's quest to create less than 300 jobs for Britons.

Politicians will always be politicians. In this case, there was more to the storyline than securing 250 jobs. Did the kickback extend to individuals in the UK? Vithlani has no comment because the most likely answer is that it did. The zeal by which Blair pushed for the deal suggests that money may have changed hands. This will not be the first time that an East African has dished out money to UK politicians.

During the Goldenberg proceedings, we learnt of the cozy relationship Ketan Somaia has with UK politicians. We were treated to juicy stories about Pattni's trip to the UK where he attended a Tory fundraiser. Pattni and Somaia were privileged to share a table with former Conservative Party chief and Cabinet minister Lord Cecil Parkinson at the Tory Winter Ball. Pattni didn't fail to brag about mingling with the likes of Mark Thatcher -the arms dealing son of Margaret Thatcher.

To cap it all, we learnt that upon retirement, Lord Parkinson became the chairman of Somaia's offshore company, Dolphin Group -the mother company of the collapsed Delphis Bank. Lord Parkinson also served as Kamani's envoy to South Africa to promote Kamani's controversial 25-year monopoly in the development of Mpumalanga Game Park of South Africa.

Proprietor of Shivacom Tanil Somaiya (Center) presenting an award to Miss Tanzania

The two Tanzanians in this mess have been linked to many other corruption scandals in Tanzania's defense contracts. These crooks continue to travel in and out of the UK as they will. The UK's seems to have a traditional stand of protecting companies and individuals who are plundering Africa. The Pattnis, the Kamanis, the Somaias and now the Vithlanis have a safe heaven in the UK. This reminds me of the colonial era companies like the British East Africa Co. that owned East Africa and plundered it with full support of the UK.

The UK doesn't seem to mind about corruption as long as the proceeds benefit her and her politicians. For this reason economic hitmen are treated like loyalty while relatively smalltime thieves like neo-colonial Paramount Chief Murungaru are prohibited from stepping on the English soil. After all the UK has to hoodwink us to see them as protectors and not perpetuators of corruption. What the heck! Fry one Murungaru and Africans will sing God Save the Queen.

In this setting, our leaders come out as colonial paramount chiefs who sold their people and land for a blanket and a mirror. And we say we are independent countries!  

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It adds up
written by Chameleon , February 02, 2007

Someone told me that the British economy is too powerful to be affected by the loss of a few contracts in Kenya. What this person didnt understand is that this "few" contracts create alot of jobs in this western countries. A good example is this Tanzanian radar deal. You can see that a few hundred British jobs were on the line if Tanzania did not buy this radar. Therefore everything had to be done to convince the tanzanians to buy it.

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A Perfect Analysis
written by pndiangui , February 02, 2007

This is what the UK and part of Europe are afraid of China penetrating in Africa.
Murungaru's visa debacle, that resulted into the denial to enter English land was a price to pay for stopping land-rover gravy train in Kenya. A franchise that the British so vehemently
defended to avoid the competition of Toyota , falling profits in their firm and jobs of Britons at risk. Not because they would have seen the perfect sense of offerring Kenyans value through Toyota vehicles , cheaper to buy and maintain. They would care less of the procurement bill to streamline government purchasing. If Delarue money-printing business fell for Chinese firm, Kenyans relations with its former colony would have been permanently damaged. Infact the decision to reinstate Delarue was made in the hope that the UK would stop its crusade against Kibaki regime. The English people still feel wounded from the Land-rover deal.
Next in-line? All the machinery in parastatals such NCPB, KPA and NCC water cleaning machines need to be
re-thought.
In Kenyata National Hospital , I have seen them order Toilet Bowls from the UK. Why, and there are cheaper options in China? Well, that they are replacing what existed ealier or the funds are coming from DFID (The development Aid Organisation that supports the English franchises in the name of procuring materials/products meant for Aid ).
As Akombe puts it, its a messy messy position we are in as Africans.

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...
written by emmo opoti , February 02, 2007

It is not British industry as a whole, but all of the militaristic firms and their outgrowths- they have done a lot of horizontal integration down the years. There are parts of British industry that have proved to be very naked to encroachment from outside.

You hear about firms like BAE systems a lot because they are peculiarly close to the political machine, and especially Tony Blair's unabashedly venal regime.

Rogers article shows the special place we hold in the Tanzanian heart as they try to copy us.This may be one of the side-effects of EAC, the Tanzanians don't want to be coming to summits feeling small next to kleptomaniacal Kenyan politicians, so they seek a taste of the pie!

Gone are the days when Tanzanians and Ugandans could say with pride that they have zero-corruption.

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written by Amir Ibrahim , February 02, 2007

Does anyone know whether these contracts are not forced on these countries as among the conditions for financial aid? And why can't the leaders say no, is there a threat of blackmail?

Ndiangui,
Why did the Kibaki government have to fold with regard to Thomas De Larue?

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On Thomas De Larue
written by pndiangui , February 02, 2007

Amir
I tend to think it was 'I will cover your back and in the hope that you'll cover mine'
Where kyfaki Regime new they were also deep with certain dirty spanish millitary deals which were well known by the English. I however feel that the Britons felt that Kyfaki was usurping his power on choosing who to do deals with and woudnt relent in calling him corrupt even when 'compensated' with the restoration of the De-larue deal. Again they still felt wounded due to the multi-billion land-rover deals that went with the millitary, internal security apparatus and other government vehicles. They felt land-rover, a british government cash-cow for taxes and jobs, was loosing a huge amount of revenues from these contracts.
Am sure given another chance Kyfaki will not give a second thought in terminating the Thomas Delarue contract. Not that he'll be doing it for with the intrest of Kenyans at heart but as a revenge to the English continued attack of his regime. And by the way Thomas de-larue's printed Shillings cost more than their worth in the market!!

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written by Amir Ibrahim , February 02, 2007

Come now,we don't really believe that Murungaru's visa was revoked because of a Land_rover deal? It might certainly have helped, but seems to me Mr. Akombe only raised that issue to point at British hypocrisy, not to lay the charge that the UK government is pro-corruption.

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Its strange
written by Chameleon , February 02, 2007

Its amazing that most African countries still have to import certain civil defense products like teargas, handcuffs, uniforms, rungus etc.

Africans might not have the technology to manufacture high tech defense equipment but I believe we can create some jobs by manufacturing some of the above items.

I think the biggest problem the British had with Kibaki other than the Landrover deal must have been the "military base contract"

It didnt go very well with the brits that they will have to give up such a strategic east and central African military base. You will note that when the contract was renewed they toned down their pressure on the goverment.

But i still believe they will make sure that Kibaki will not win

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written by Musa , February 02, 2007

Chameleon, I can see your point. The problem the British have with Kenya is manly over the colonial based contracts. There is recognition that if Kenya pulls through attempting to sources goods from other suppliers the rest of the region might follow suit and the cumulative effect would have a disastrous impact on the UK.

As the main colonial power the UK have a monopoly over supply in the region. And in most cases they use sweeteners corruption to keep the deals hot and also escalate price, This is what has emerged in the case of BAE in Tanzania and SA and is also how the Anglo-leasing projects were framed. It is a process of bribe and escalates cost; they have nothing to lose because they recoup the cost of bribing in the pricing, with the Indians providing the face of the deals.

Many countries in sub-Sahara are locked in a cycle of this sort of operation, China is causing nervousness not only because they could become a competitor for resources but they might trigger a break of this cycle in the supply chain. The British have set up a quality standard monitoring unit in Nairobi which is really an intelligence decoy to keep an eye of what China is delivering into the region.

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Re:Quality standard monitoring
written by Chameleon , February 02, 2007

Musa,

I didnt know of such a unit operating in Kenya. When was it set up? Did the Kenya goverment invite them to set it up?

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written by Musa , February 04, 2007

The QA monitoring unit was written about in one of the papers, but we also have the new breed of explorers claiming to be retracing the routes of the early missionaries and explores like Livingstone, Stanley etc these are intelligence operatives there is nothing like explores of the 21 century. This is how the Brits always manage to keep on top of their most priced colonies like Kenya, but we can never get the gists of the operations.

We find that when they try to do the explores thing in places like Russia or China especially in areas around their oil resources the Russians put their intelligence agencies on alert. As explores they can manage to by pass the formal entry routes and enter through some back route and buy local agents.

These sorts of operatives have escalated in Kenya especially in the last three years. We are forever so complying and never suspicious.

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Mambo bado
written by Chameleon , February 05, 2007

Its things like this that scare the west especially the brits in Kenya. Before such contracts would have been awarded to them. But the chinese have been outbidding them on every field.

One of the biggest project that everyone wants to control is the Southern Sudan Oil project whose pipelines have to pass through Kenya or somewhere for shipping. I know the Chinese want this deal but I am sure the west would want control.

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re: Military procurement
written by aeichener , February 05, 2007

Its things like this that scare the west especially the brits in Kenya. Before such contracts would have been awarded to them. But the chinese have been outbidding them on every field.

Just wait for the procurement contract for new tanks... I think that of the present battle tanks of the Kenyan army, no more than 10 % are combat-ready, and they are definitely no match against modern infantry anti-tank weapons.

Alexander

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written by emmo opoti , February 05, 2007

Best thing to do would be to scrap that godforsaken army for all time. Does anyone know what use the Kenya army is? All these defence contracts, the Tanzanian one or these Kenyan ones, does this fancy equipment embolden our feeble forces?

What threat was Tanzania arming herself against? The Rwandese airforce? Ridiculous! And we still hold fanciful notions of eradicating poverty!! According to the CIA Worldfactbook, we spend annually (2005 numbers) $650 million on our military, how big a difference would that have made to Kenya?

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written by aeichener , February 05, 2007

C'mon, Emmo. The Tanzanian army fostered such a brilliant artist as Gado, so it cannot be judged as totally useless.


Alexander

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South Africa defense industry
written by Chameleon , February 06, 2007

During Apartheid South Africa had a very well developed military industry. But immediately the blacks took over they were pressured by the west to cut down on military spending and close down a chunk of it.

Ask yourself why?

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written by emmo opoti , February 08, 2007

The East African carries a report here on how President Mkapa, and UK International Development Minister Claire Short were keen to put a stop to the contract and how the power of the MIC and TB forced the deal through.

A truly evil low-life this Tony Blair! Here is the link!

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