TOURIST HUNTING INDUSTRY: Revealed: Mzindakaya`s `hidden` business interests

April 21, 2009



THISDAY REPORTER
Dar es Salaam

MORE details have emerged about the concealed business interests of the Kwela Member of Parliament on the ruling Chama Cha Mapinduzi (CCM) ticket, Dr Chrisant Mzindakaya, in the country’s tourist hunting industry, which suggest that the lawmaker may have a direct conflict of interest in tabling a private members motion in Parliament on the allocation of hunting blocks.

According to latest THISDAY findings, the MP has been linked to a controversial tourist hunting company Tanzania Hunting Safaris Ltd-- whose South African director, David van der Meulen, fled the country in December 1996 without paying a $372,980 (approx. 500m/-) debt to the government.

In 1996, the Wildlife Department stopped issuing hunting licences and other services to Tanzania Hunting Safaris due to an accumulated debt that the company had failed to settle, but Dr Mzindakaya on behalf of Tanzania Hunting Safaris negotiated with the Wildlife Department and the Ministry of Natural Resources and Tourism, and gave verbal and written assurances that he will follow up and make sure that the company paid the debts provided the Wildlife Department continued issuing hunting permits and services to the company.

Dr Mzidakaya (pictured) failed to honour his assurances and this resulted in the debt of Tanzania Hunting Safari to the Wildlife Division to increase, reaching $372,980.

This company failed to settle its liabilities to the Division of Wildlife and Dr Mzindakaya in his letter with reference number ECG.4/WL.8/7 dated December 18, 1996 guaranteed the settlement of the liability which he never did, say government sources.

Thus far, government officials say the lawmaker has not been able to assist the government to recover the estimated 500m/- from Tanzania Hunting Safaris.

The Wildlife Division wrote a letter to Mzindakaya on February 3, 1998 with reference NO: GD/T.80/53/63 asking the MP to facilitate payment of the company’s debt, but he has since been unable to secure recovery of the funds.

’’I have been directed to inform you that the Division (of Wildlife) is requesting settlement of more than $372,980 owed by Tanzania Hunting Safaris whose whereabouts is not known,’’ said the letter signed by one senior wildlife officer on behalf of the Director of Wildlife.

The letter seen by THISDAY added: ’’As the consultant (Mzindakaya) of the company we advise you to let the Wildlife Division know procedures of payment of the money, including availing us information on the whereabouts of the company.’’

’’The Department (of Wildlife) is banking on your co-operation in making sure that the money is recovered as other legal measures against the company are being taken,’’ said the letter.

In 1996, Mzindakaya and a South African national, David van der Meulen, took over Tanzania Hunting Safaris Limited. A year later (1997), Mzindakaya and van der Meulen attended the Safari Club International Convention in Nevada, USA, where they are reported to have sold safaris to American clients.

Later, David van der Meulen went into hiding taking away all trophy fees for 1996 and clients� deposits for 1997 causing hundreds of thousands of dollars loss to the government and clients.

The government was forced to release trophies to clients without being paid a single cent in order to safeguard its reputation in the international hunting market.

A Tanzanian professional hunter who had worked with David van der Meulen confirmed in Arusha over the weekend that Mzindakaya had worked closely with this South African.

The hunter who preferred to remain anonymous said David van der Meulen and Mzindakaya used to charter planes flying to Rukwa and Kigoma Regions where ’’they were reportedly intending to establish joint ventures in mining.’’

The professional hunter, now doing his hunting business in Mozambique, said the South African and Mzindakaya were reported to have joint business interests with Malaysian investors in Kigoma and Rukwa Regions.

’’Reports indicate that the hiring of the aircraft left David van der Meulen bankrupt and insolvent, something that forced him to wind up his tourist hunting company without settling the firm’s liabilities,’’ said the local professional hunter.

He said when Tanzania Hunting Safaris Ltd wound up its business Mzindakaya and himself took motor vehicles belonging to the firm, adding that the Kwela legislator helped himself with a Toyota Landcruiser with registration number ARP 17.

Political observers say Mzindakaya’s decision to move a private member’s motion in Parliament on January 30, this year, on the country’s hunting industry was a direct conflict of interest due to his personal financial interests in the area.

Investigations have revealed that apart from the MP’s links to the dubious Tanzania Hunting Safaris company, his own children -- Lucas M. Mzindakaya and Paul C.M. Mzindakaya -- also have controlling shareholding in a company known as Milanzi Wild Animals Zoo and Tours Limited, which was registered in May 1994.

An industry source says Milanzi Wild Animals Zoo and Tours Limited was allocated the Swagaswaga Hunting Block in Rukwa Region. ’’As a father of those shareholders, Mzindakaya ought to have complied with Rule 49 (7) of the august House rules by declaring his interests which he did not do,’’ say political observers.

The analysts add that the Kwela legislator has been personally lobbying to get the Milanzi company allocated with hunting blocks which already belong to other hunting companies.

’’The Division of Wildlife in the Ministry of Natural Resources and Tourism could not do that because it could have amounted to breach of contractual obligations. That has been the cause of the outbursts of Hon. Mzindakaya,’’ said one industry source.

During the 2008/09 marathon parliamentary budget session, the MP controversially opposed a motion by opposition lawmakers against the misappropriation of funds from the Bank of Tanzania’s external payment arrears (EPA) corruption scandal, who also called for the resignation of former BoT governor, the late Dr Daudi Ballali.

He made the remarks in defence of the central bank without publicly declaring that he was among businessmen who were beneficiaries of billions of shillings from financial institutions under the BoT�s guarantee.

These include Sumbawanga Agricultural and Animal Food Industries Limited (SAAFI) that got a loan of 9.7bn/- from Standard Chartered Bank in 2004, thanks to a guarantee from the BoT, whose primary function is to safeguard the country’s economy.

Mzindakaya criticized corruption allegations on the EPA scandal presented by the Secretary-General of the opposition CHADEMA party, Dr Wilbrod Slaa, without mentioning that he was actually the beneficiary of a hefty BoT-guaranteed loan.

It is possible that the Ministry of Natural Resources and Tourism failed to institute legal and criminal actions against David Van der Meulen over 10 years ago due to Dr Mzindakaya’s involvement with him, but it is still possible to institute legal action against van der Meulen as there is no time frame on the case.

Conflict-of-interest allegations against MP Mzindakaya: Speaker Sitta called upon to take action

April 23, 2009
-Formal request letter copied to State House, Tourism ministry

THISDAY REPORTER
Dodoma

A GROUP of stakeholders in the local hunting industry have lodged a formal complaint with the Speaker of the National Assembly, Samwel Sitta, over an alleged breach of parliamentary conflict-of-interest regulations by Kwela legislator Dr Chrisant Mzindakaya.

According to THISDAY’s findings, the letter dated April 15 this year makes reference to a private member’s motion moved by Mzindakaya during a National Assembly session last January, and asserts:

’’The effect of that motion was to portray us, stakeholders in the hunting industry, as corrupt and greedy people who do not take the interest of the country at heart. The motion has created a very bad image of us.’’

The stakeholders accused the veteran ruling CCM member of parliament of moving the motion ’’with the intention of deceiving the National Assembly, and without full disclosure of his personal interests and motives’’.

They said the motion tabled on January 30 this year, concerning alleged anomalies in the allocation of hunting blocks in the country, was a direct conflict of interest considering his own personal financial interests in the matter.

Parliamentary sources say the letter was also copied to the Chief Secretary at State House, and the Minister for Natural Resources and Tourism.

The matter is understood to have come to a head in the wake of recent revelations that Mzindakaya has had direct business links to a number of hunting firms, but did not declare this as required by House regulations when tabling his motion earlier this year.

’’We know that an MP is not permitted to move a motion in the National Assembly for the sole purpose of advancing private interests. Yet (Hon.) Mzindakaya did just that,’’ the letter said.

It asserts that two of the MP’s sons, namely Lucas M. Mzindakaya and Paul C.M. Mzindakaya, have controlling shareholdings in the Milanzi Wild Animals Zoo and Tours Limited hunting company, and adds:

’’As the father of those two shareholders, Hon. Mzindakaya ought to have complied with Rule 49 (7) of the august House rules by declaring his interests. He did not do that.’’

’’He has been lobbying to get the Milanzi Company allocated with hunting blocks which already belong to other hunting companies. The Division of Wildlife in the Ministry of Natural Resources and Tourism could not do that because it could have amounted to breach of contractual obligations. That has been the cause of the outbursts of Hon. Mzindakaya,’’ the letter further states.

The letter also detailed Mzindakaya’s apparent business associations with a South African national, David Van Der Meulen, who owned a company called Tanzania Hunting Safaris Ltd, but has since skipped the country without paying around 500m/- in various government fees and royalties.

’’(Mzindakaya’s) motion contains lots of untruths and fabrications. Just to give one example, he stated that the hunting industry is dominated by foreign operators and professional hunters. The truth is that in the year 2008, there were about 55 hunting companies in Tanzania and only 11 of them were foreign,’’ said the letter.

Stating that they were writing ’’as citizens of the United Republic of Tanzania, and as stakeholders in the hunting industry in Tanzania,’’, they asked the Speaker to forward their complaints against the veteran legislator to the parliamentary ethics committee for deliberation.

They added that they were willing to appear personally before the committee to ’’explain all the falsehoods contained in Hon. Mzindakaya’s motion, so that if the same are established, appropriate steps may be taken against him as permitted by the Rules of the House.’’

Although, after a week-long effort, THISDAY finally managed to get hold of Mzindakaya yesterday to comment on the allegations of conflict of interest against him, he chose to decline comment.

Our investigations have established that in 1996, the government stopped issuing hunting licences and other services to Tanzania Hunting Safaris due to an accumulated debt that the company had failed to settle.

But Mzindakaya then intervened by formally vouching for Van Der Meulen’s company as a genuine hunting firm.

In a signed letter dated December 18, 1996 and addressed to the Wildlife Division in Ministry of Natural Resources and Tourism,with reference number ECG.4/WL.8/7, the MP stated: ’’I am currently the consultant of this company (Tanzania Hunting Safaris), and I will facilitate payment of the fees owed by the company to the (Wildlife) Division.’’

Government sources say it is not acceptable that some legislators have decided to damage the tourist hunting industry and destabilise the image and the reputation of Tanzania in the world.

What?!? Corruption by an African government official?? Perish the thought!

Confirmed: Anti-Mzindakaya letter now with Bunge office -Will be dealt with, says National Assembly clerk

April 27, 2009
THISDAY REPORTER
Dar es Salaam

THE Office of the Speaker of the National Assembly has confirmed receipt of a formal complaint from stakeholders in the local hunting industry over an alleged breach of parliamentary conflict-of-interest regulations committed by Kwela member of parliament (CCM) Chrisant Mzindakaya.

In a telephone interview with THISDAY from Dodoma, the Clerk of the National Assembly, Dr Thomas Kashillilah, said the complaint letter reached the Speaker’s office last week.

’’We have received the letter and the Speaker’s office will act on the matter as soon as possible,’’ Dr Kashillilah said.

He explained that the first step is likely to be to summon the complaining stakeholders in order to get more clarification on some of the complaints detailed in the letter against the veteran MP, after which any further steps to be taken will follow.

But he said the letter lacked contact details for any of the complainants, which could delay swift action by the Speaker’s office.

According to Kashillilah, the Bunge office is keen to communicate with the complaining hunting sector stakeholders to further discuss the matter.

’’Only after meeting and getting certain clarifications from those who lodged the complaints against the honourable MP, can the Speaker’s office determine what the next step should be,’’ he said.

He called on the complainants to communicate with the Speaker’s office as soon as possible, to ensure speedy and proper processing of their complaints against Mzindakaya.

According to THISDAY findings, the complaint letter dated April 15 this year, makes reference to a private member’s motion moved by Mzindakaya during last January’s National Assembly session in Dodoma.

It accuses the Kwela legislator of moving the motion ’’with the intention of deceiving the National Assembly, and without full disclosure of his own personal interests and motives.’’

According to the complainants, the motion tabled on January 30 this year - concerning alleged anomalies in the allocation of tourist hunting blocks in the country - was a direct conflict of interest considering Mzindakaya’s own personal financial interests in the matter.

Parliamentary sources say the letter was also copied to the Chief Secretary at State House, and the Minister for Natural Resources and Tourism.

The matter is understood to have come to a head in the wake of recent revelations that Mzindakaya has had direct business links to a number of hunting firms, but did not declare this as required by Bunge regulations when tabling his motion.

’’We know that an MP is not permitted to move a motion in the National Assembly for the sole purpose of advancing private interests. Yet (Hon.) Mzindakaya did just that,’’ the letter said.

It asserts that two of the MP’s sons, namely Lucas M. Mzindakaya and Paul C.M. Mzindakaya, have controlling shareholdings in the Milanzi Wild Animals Zoo and Tours Limited hunting company, and that he had lobbied to get this company allocated with hunting blocks which already belong to other hunting companies.

’’The Division of Wildlife in the Ministry of Natural Resources and Tourism could not do that because it could have amounted to breach of contractual obligations. That has been the cause of the outbursts of Hon. Mzindakaya,’’ the letter states.

It also states that Mzindakaya should have made it clear under Bunge rules that he was the father of the two Milanzi company controlling shareholders, ’’but he did not do that.’’

The letter also detailed Mzindakaya’s apparently dubious business association with South African national David Van Der Meulen, who owned a company called Tanzania Hunting Safaris Ltd, but is understood to have since skipped the country without paying around 500m/- in various government fees and royalties.

The complainants, who described themselves in the letter as ’’citizens of the United Republic of Tanzania and stakeholders in this country’s hunting industry,’’ have asked the Speaker to forward their complaints against the veteran legislator to the parliamentary ethics committee for deliberation.

They added that they were willing to appear personally before the committee to ’’explain all the falsehoods contained in Hon. Mzindakaya’s motion, so that if the same are established, appropriate steps may be taken against him as permitted by the Rules of the House.’’

When contacted by THISDAY to comment on the allegations of conflict of interest against him, Mzindakaya chose to decline comment.