By Faustine Kapama,
FORMER Finance Minister Basil Mramba on
Tuesday admitted before the Kisutu Resident Magistrate's Court in Dar es
Salaam to issuing a Government Notice (GN), granting tax exemption to
Alex Stewart Government Business Corporation, which had been contracted
to conduct mineral audits.
However, the ex-minister was quick to defend his position, saying
that any contrary decision would have forced the government to source
more funds to enable the company pay tax and remain with its take home
pay of 1.9 per cent of the market value of the audited gold exports.
"As a ministry, we deemed it proper to grant the tax exception for
the contractor (Alex Stewart) to remain with the take home pay," Mr
Mramba told a panel of adjudicators John Utamwa, Saul Kinemela and Sam
Rumanyika, when concluding his defence testimony.
The former minister was testifying in the trial in which he is
charged alongside former Minister for Energy and Minerals Daniel Yona
and the Permanent Secretary with Treasury, Gray Mgonja, with abuse of
office and occasioning loss of 11.7bn/- to the government.
Led by his advocate Herbert Nyange, Mr Mramba told the court that the
tax exception was granted in line with laws, regulations and procedure
and in accordance with the contract that was signed between the gold
assayers company and the Bank of Tanzania (BoT). "We did not rush to
enter into this contract. All legal procedures and regulations were
followed.
The cabinet of ministers was involved and approved the proposal for
the payments. Proposals for the payments was also endorsed by the
National Assembly," he alleged.
Mr Mramba further said that he had tabled the contract for
procurement of the gold assayers to a cabinet meeting, which later was
satisfied with the terms therein before allowing him to seek approval of
payments for the company in Parliament.
Had the contract had any elements that would have caused the
government to suffer loss, he said, the cabinet of ministers would have
discontinued its implementation.
He also refuted the prosecution's claim that he was involved in the
process of procuring the gold assayers company and in signing the
contract for the assignment given to Alex Stewart.
