The prosecution is set to lodge an appeal against the judgment entered in the trial of five officials with Development Entrepreneurship for Community Initiative (DECI) despite being convicted of offences for operating a pyramid scheme in the country illegally.
Bank of Tanzania (BoT)
“We have already filed a Notice of Appeal against the verdict given by Resident Magistrate Stuart Sanga,” Senior State Attorney Prosper Mwangamila, who prosecuted the case at the Kisutu Resident Magistrate’s Court, told the ‘Daily News’ in Dar es Salaam.
The state attorney further said: “We have also applied for copies of typed proceedings and judgment to enable us process the appeal in question, having being aggrieved on a number of issues regarding the trial as analysed by the trial magistrate.”
Among orders which appeared to have aggrieved the prosecution include a directive to the Bank of Tanzania (BoT) to refund members of the public who had sown seeds with DECI.
The prosecution alleged that none of the members of DECI was required to benefit because during operation of the pyramid scheme, both operators and members were committing offences.
On August 19, this year, Magistrate Sanga convicted Jackson Sifael Mtares, Dominick Kigendi, Timotheo Saigaran ole Loitginye and Samwel Sifael Mtares of two counts of operating the scheme by receiving deposits and providing returns to people without a licence.
The magistrate sentenced the four, who were directors of DECI, to pay a fine of 21m/- each or go to serve a custodian sentence of six years in default of paying the fine.
The convicts, excluding Dominick Kigendi, have already paid the required fine. He said he was satisfied by evidence produced by 16 witnesses that the four committed the offences. “On the basis and strength of evidence produced by prosecution witnesses, this court finds the accused were involved in operating and managing the pyramid scheme,” he ruled.
The magistrate added, “The prosecution has sufficiently proved the count(s) beyond reasonable doubts against them. The (…) accused persons are hereby found guilty as charged.” He sentenced each of them to serve three years in jail in default of paying fine of 3m/- on first count.
In the first count, the accused persons were charged with receiving deposits and providing returns to people. For the second count involving operating the pyramid scheme without licence, each convict was ordered to remain behind bars for three years upon failure to pay 18m/- fine.
The four convicts were charged alongside Arbogast Francis Kipilimba, whom the court found him innocent after the prosecution failed to prove the charges against him.
“There is no evidence establishing (his) involvement. He is hereby acquitted forthwith,” the magistrate declared. In his judgment, M Sanga directed the Bank of Tanzania (BoT) to confiscate all accounts at various banks opened for DECI and seize all other assets owned by the company.
According to the magistrate, the BoT should find ways of refunding members of DECI who had sown seeds upon verification of required receipts. At the time the government intervened into the matter, DECI had over 400,000 members who owed the company over 92bn/-.
During the trial, the prosecution had alleged that between 2007 and March 2009, at the headquarters of DECI at Mabibo area in the city, the convicts operated and managed the pyramid scheme in different places in the country.
The prosecution had charged that the convicts promised members of the public that they would harvest more money upon sawing seeds. The court was also told that within such period, the convicts received from members of public such deposits without a licence.
By FAUSTINE KAPAMA, Tanzania Daily News
