Here are more information on the Prime Ministers Task Force investigation of Friedkin Group in Tanzania, you can find it here:

The task force formed by Prime Minister’s office has discovered huge tax evasion amounting to almost Tshs. 10Bn from 6 Companies owned by an American billionaire one Mr. DanFriedkin. The companies are said to deal with Tourism Business in Tanzania.
For such allegations Directors of Friedkin companies are likely to be held accountable and can face criminal charges lodged against them as per Governments Directives.
While the Task force came up with a figure of Tsh 10 Billion, investigatorsworking with JAMHURI estimate the figure to be more than five times the figure revealed. The evasion is for more than 30 yrs of doing business in Tanzania. The Friedkin Group of companies is also being investigated for other tax evasion matters relating to offshore fictitious inter-company loans, offshore purchases of Tanzanian assets and transfer-pricing schemes.
For the 30 yrs of existence of the Friedkin Group companies in Tanzania, employees in particular white foreign expatriates of Friedkin Group of Companies in Tazania have been paid their salaries and other benefits through offshore Bank Accounts opened abroad for the sake of hiding their income so as to taxes of such a poor third world country. The money is said to have been deposited in financial institution inFriedkin affiliate companies Adventure Services Limited and AHIL Trust Limited in the Island of Bahamas. While this is ongoing, further investigations are being conducted on Friedkin bank accounts in Cayman Islands, Bhamas, Switzerland, USA and Tanzania.
Among the key Executive Management personnel said to have authorized these dubious transactions from Friedkin Head Offices based in Houston, Texas, are Mr. Dan Friedkin (President of the Group) , Marcus Watts (CEO) and Ms. Kimberley Jacobson (Chief Legal Officer).
The Tanzanian Government has already confiscated passports of six Executive Managers & Consultants operating the Friedkin Group companies in Tanzania. These Executive Managers/Consultants are said to be frantically pleading for the release of their passports on the pretense that they have urgent family matters, business trips and or health concerns to attend to. So far, the Government has been reluctant to release their passports until the Prime Ministers’ Task Force completes its full investigation over the Friedkin Tax Evasion scam conducted over a 30 year period.
Friedkin Companies in Tanzania are mainly involved in Aviation, Photographic as well as Hunting Tourism Industry. The companies are: Tanzania Game Trackers Safaris Ltd (Professional Hunting), WengertWindrose Safaris (T) Ltd (Professional Hunting), Kerr& Downey Safaris (T) Ltd (Photo Tourism), Northern Air Ltd (Aviation), Mwiba Holding Co. Ltd (Ranch and Tourism.) and the Friedkin Conservation Fund (Conservation). Were The Prime Ministers’ Task force has uncovered a disgraceful off shore salary scheme enjoyed only by white expatriate employees (who in some cases do not even have the qualifications to hold such posts), where these foreign workers only declare a token of their income in Tanzania while the lion share of the salary is paid offshore by Friedkin Group companies based in Bahamas and Cayman Island. This scheme has been ongoing for 30 years and is a discriminatory arrangement only privileged to white employees. All black Tanzanian workers including Managers with top qualifications are paid far less and are deducted all statutory payroll taxes required by law while their white foreign counterparts enjoy hefty offshore tax free salaries.It was also revealed that most of these white foreign expatriates enjoyed double salaries/incomes without statutory deductions. In fact, the Task Force for instance uncovered a double/triple salary scheme for expatriates holding two to three employment contracts so as to conceal their earnings so as to evade tax- the Managing Director of Kerr & Downey, a a Mr. Jean Claude Mcmenimen was such an example.

The Friedkin Group Executives in Tanzania over the last weeks have tirelessly attempted to lobby and persuade the Government to return their passports but their efforts proved futile unless they meet bail conditions of depositing Tshs. 5Bn (equivalent to approximately USD 2.1 Million). Instead, the Friedkin Group executives sent a delegation to Dodoma in an attempt to meet with the Prime Minister but were not successful. In turn, these group of executives in Tanzania then proposed a meager figure between Tshs. 100M (USD $ 42,478) and or Tshs. 200M ( equivalent to USD $ 86,986.00) as a counter offer for a deposit and also requested the Task Force to omit a Mr Alex Rechsteiner from the list of persons whose passports where confiscted.The Government refuted these ridiculous offers and demanded a deposit of Tshs. 5 Billion while further investigations were ongoing.
The Managing Director of one of Friedkin Group of Companies (Ker & Downey Safaris Tanzania Limited) one Mr. Jean–Claude Mcmenanin pleaded guilty in writing to the Prime Ministers Task Force to some of the allegations and pledged to depositTshs. 5Bn (USD $ 2.1 Million) as a commitment to the Government so as further investigations continue and any additional tax dues are rised this deposit can act as an initial payment.
Friedkin Companylawyers in Tanzania, are Mawalla Advocates a Mr Lemmy Bartholomew who has been instrumental in setting up their offshore arrangements and schemes in Bahamas, Switzerland and Cayman Islands. It has been discovered that he has close ties to many offshore services companies worldwide but has worked very closely with CIM Corporate services in Port Louis Mauritius. He has enjoyed a close working relationship with Friedkin Executives in Houston Texas, Mr Marc Watts and Ms. Kimberley Jacobson.



The Prime Ministers task force has unraveled a 30 years tax evasion scheme of the Friedkin Group in Tanzania by using foreign offshore accounts for their white expatriate staff. In 2018, the Task Force revealed that a sum of USD $ 963, 879 was paid offshore evading all Tanzanian Tax dueswhich according to the current exchange rate is equivalent to Tshs.2.216Bn. In 2009, the amount deposited overseas amounted to $ 849,109 equivalent to TZS 1,952 Bn. And in 2010, the amount deposited was $ 578,798 equivalent to Tshs. 1.331 Bn.This means the amount of tax evaded for 33 years amounts to Tshs. 181,467 Bn equivalent to USD $ 78.8 Million.
Expatriates white Managers such as the Managing Director, Mr. Jean – Claude Mc. Menamin is paid a monthly salary of Tshs. 50Million (USD $ 21,739/=) while Director of Operations for Mwiba Holdings Ltd, one Mr. Russel Hasting is paid a monthly salary of Tshs. 49Million (USD $ 21,304) and the Director of Finance, with Ker & Downey Safaris Tanzania Ltd, one Mr. Nick Stubbs is paid a monthly salary of Tshs. 43Million (USD $ 18,695).
A large sum of these salaries are not taxed due to the fact that these salaries are deposited in the foreign Accounts abroad thus occasioning a huge loss to the Tanzanian Government. For example for Mr. Russel Hastings alone during the period of 2013 to 2019 a sum of Tshs. 840Million (USD $ 365,217/=) was evaded. While he colleague Mr Nick Stubs over the same period evaded a sum of Tshs. 744M (USD $ 323,478/=).
Further revelations of the Task Force showed how local black Tanzanian employees in management positions earned substantially much lower salaries even in situations where some of these Managers were more qualified than their foreign compatriots of similar level. Local black African employees are in managerial positions earned approximatelyTshs. 9Million ( USD $ 3,913/=) of which after statutory deductions, the take home never exceededTshs. 5Million (USD $ 2,173/=). Furthermore non-skilled junior employees earned between Tshs. 400,000( USD $ 173/=) to Tshs.800,000 (USD $ 347/=) and still all statutory tax deductions would be adhered too bring their net pay to minimal incomes. Lastly, it has also become transparent that that for the past 30yrs not a single black African Tanzanian Citizen has been given an executive post in the Friedkin Group of Companies in the country.



Further observations were also made by the Task Force that foreign Professional Hunters, are paid a monthly pay of $ 12,000 (equivalent to Tshs. 27.6M) while local black Tanzanian professional hunters with the same qualifications and experience are paid only USD $ 1000 (equivalent to Tshs. 2.3M) for the same work.
For almost a week now, Jamhuri have been making efforts to meet the management of Friedkin Companies but in vain. One of the long-time employee of these companies one Mr. AbdulkadirLutta was contacted but refused to say anything on ground that he is not a spokesman of the companies. Several attempts were made to contact Mr. Jean Claude, who is the spokesperson of the companies, but never responded even when contacted by way of whatsApp on 8th November, 2019. Our reporter, on making other efforts was told to wait until they decided to contact him.
Public opinion and observations countrywide are while FriedkinExecutive Managers and Consultants are roaming around free in Tanzania, other suspected culprits facing similar allegations for criminal offencesare kept in remand prison and among them is one Mr. IssackMolel of OBC (a professional hunting and tourism company). He and some others are still in remand even though President Magufuli Directives to release them have been announced and enacted. However, the likes of Mr Isaack Mollel who is willing to enter into plea bargaining agreement of being pardoned and re-paying the amounts efforts are still so far in vain.
Furthermore, Friedkin Group of Companies in Tanzania have been in clashes with other hunting and tourism Companies but it seems they get backing and support from top Government officials. A recent incident of revoking the license of Green Mile Safari Company by the sitting Minister of Natural Resources and Tourism (Hon. HamisKigwangalla) whose demand/order to issue the same block to theFriedkin Group of Companies is a typical example. The failure of this exercise left misunderstandings between Ministerial officials and Friedkin Management


http://www.jamhurimedia.co.tz/category/gazeti-letu/
and also article on THE CITIZEN magazine 30-11-2019

These are very serious allegations that need to be answered.

From a Tanzanian perspective this is how we see it.
Friedkin cheating on taxes, discriminating in pay and promotion against black Tanzanian employees for 30 years...
Yet now he has plenty of money to buy a billion dollar Italian football club for his 30 year old son...

https://www.forbes.com/sites/g...a-for-1-billion/amp/

Friedkin today sits on 8 concessions / 3.5 million acres of the best wildlife land in Tanzania, of which he personally promised our presidentJohn Pombe Magufuli in writing after acquiring a strategic investment status in August, 2015 that he would invest USD $ 100 Million over ten years with a yearly commitment. Yet, to date this investment has not been honoured- a total disrespect to our president, country and people.
Why would Friedkin do this to the Tanzanian people, if he loves Tanzania as much as he publicly claims to in the media.

Friedkin would never do this to his people in USA . Why is it ok for him to do this to his people in Tanzania? MORE TO COME U WANT BELIVE ALSO WHO IS BEHIND THIS.

This is the crux of the complaint, well that and the fact that the foreign executive staff is all white.

quote:

where these foreign workers only declare a token of their income in Tanzania while the lion share of the salary is paid offshore by Friedkin Group companies based in Bahamas and Cayman Island. This scheme has been ongoing for 30 years and is a discriminatory arrangement only privileged to white employees. All black Tanzanian workers including Managers with top qualifications are paid far less and are deducted all statutory payroll taxes required by law while their white foreign counterparts enjoy hefty offshore tax free salaries.

Fact is, the Tanzanian government is not entitled to moneys made offshore by international business men and there is no law against salary discrepancy. This is a ridiculous supposition and is nothing more than a government shakedown - You have more money than me so I want you to give me some of it. Also, telling is how the government complaint as this article is written is rife with race statements.

If I was a Director of the Friedkin Group I would be busy pulling the operation out of Tanzania.

Very interesting.

It seems to me to be rather odd that they go back 30 years. Isn’t there a statute of limitations?

Unless one is reading carefully, one can get the wrong impression. Some of the numbers quoted are the salaries involved NOT the tax.

If I remember the numbers correctly, this is $2.1 million over 30 years. That amounts to $70,000 US per year. Seems like not a hell of a lot of money in the overall scheme of things .

It would also seem to me that the employees are just as guilty as Friedkin, if Friedkin in fact did anything wrong. How does the government know that these people didn’t do some work offshore?

I know nothing about the Friedkin’s or any of their companies . It makes no difference to me whether they are guilty or not. Having said that , this information is presented in a way that sound like someone is out to get them as opposed to stating the facts. That makes me suspicious.

If I was a Director of the Friedkin Group I would be busy pulling the operation out of Tanzania.[/QUOTE]

That may be exactly what they want. Someone who is connected could take over those areas.

I am sure that is the end game.

What they don't understand is customers go to Tanzania because of Ker & Downey. If they pull out, there will be no customers and no revenue stream. In addition, there is a long and storied precedent for lodges mysteriously burning down as operators are driven off their concessions.

The same mentality was demonstrated when Uncle Bob took productive farms and gave them to his buddies. That didn't work out so well for anyone involved.

Bottom line, Tanzania doesn't look like a good place for foreign investment.

Yup. I am doing a little research. TZ indeed is a place where a lot of companies pulled out. I’ll post more later.

Looks like a social-justice-shakedown. The article was not written by an impartial reporter, and it seems there is a decided lack of understanding of how banking works.

Given there are plenty of specifics regarding money ans salaries, this information must be available somewhere - perhaps via the "task force?" Might consider just posting the task force report versus twisting it to suit a specific agenda.

It seems that TZ is in a strange time . There are some unfathomable things going on. To start with , the President does not care for those who disagree with him.
https://www.bbc.com/news/world-africa-50837986

It seems that there have been many changes, not all of which are good.
https://www.economist.com/midd...ozer-runs-off-course

https://www.economist.com/midd...nias-rogue-president

https://www.economist.com/midd...-of-fear-in-tanzania

The. business environment awful and investors are leaving the country in droves (including large American companies like Symbion and Universal Leaf), and the remaining investors are increasingly targeted by the government for outright extortion. Let’s look at a few examples:

Take the $190B fine of a mining company. This is many multiples of TZ GDP.
https://qz.com/africa/1038094/...n-fine-and-tax-bill/

This is absolutely absurd.

The Friedkin are not the first hunting related entity to be attacked. The head of Kilombero North Safaris was arrested on trumped up charges:
https://www.thecitizen.co.tz/n...58-p4vttn/index.html
Because his brother is extremely wealthy:
https://www.forbes.com/sites/m...illion/#546e06f0464e
And the government used the arrest of Akram as leverage on Rostam, to extort money.


I don't know if the Friedkins have evaded any tax.
I do know the Gov of TZ has lost all credibility on these matters with me and likely others based upon the way they have acted over the past few years,based upon my research.

This shouldn’t surprise me. The tax systems in TZ seem to be extraordinarily difficult. It appears the system in Tanzania is not designed for compliance, it is designed for companies to fail, so that they have to pay a fine. There are dozens (I believe over 30) taxes that tourism companies have to pay. And we complain about the IRS.

From what I hear, the Friedkins have been responsible for huge development in Arusha and activity in the conservation space. The fact that the government is going after them after everything they have done is a very sad sign of the times.

Hey, this is Africa. Why would it make any sense?

Not knowing the specifics, I would still hazard a guess that Friedken is too damn smart to break any laws. Especially when operating in dodgy Africa.

Jeff

quote:

And we complain about the IRS.

Larry,

The IRS send officers abroad trying to catch Americans perceived of tax evasion.

quote:

Originally posted by larryshores:

Hey, this is Africa. Why would it make any sense?

Yep. Extortion is not new to the continent. But if you're the target of extortion, you only have two choices: 1. Just say no. OR 2. Comply and become their bitch.

Anyone who invests in Africa best be prepared to toss the road flare on your investment and walk away. Never forget you're dealing with petulant children.

You have better odds at a craps table in Vegas than investing a dime in Africa...

quote:

Originally posted by jdollar:
You have better odds at a craps table in Vegas than investing a dime in Africa...

Yep!

And I like the title of this thread too.

ECONOMIC SABOTAGE!

African leaders are unbeaten at this.

I personally know a number of individuals, with successful businesses, who tried their hands at working in several African countries.

They all came out shaking their heads at the utter corruption rife in those countries.

They pulled out.

It is actually the loss of those countries.

Tanzania built a new terminal, it took them several years.

Dubai built a new terminal, several times bigger, and added a third runway too, done in less than a year!

I mentioned this to an engineer involved in building these in Dubai, comparing it to Dar.

He said "you kidding, right? We are happy to work here, we get paid for our work."

quote:

Originally posted by Bwana Bunduki:
Not knowing the specifics, I would still hazard a guess that Friedken is too damn smart to break any laws. Especially when operating in dodgy Africa.

Jeff

I think you are spot on. A friend was an executive for their major American company for a number of years. They go by the book.

quote:

Originally posted by acryfromtanzanian@gmail.com:

Further observations were also made by the Task Force that foreign Professional Hunters, are paid a monthly pay of $ 12,000 (equivalent to Tshs. 27.6M) while local black Tanzanian professional hunters with the same qualifications and experience are paid only USD $ 1000 (equivalent to Tshs. 2.3M) for the same work.


Friedkin would never do this to his people in USA . Why is it ok for him to do this to his people in Tanzania? MORE TO COME U WANT BELIVE ALSO WHO IS BEHIND THIS.

Quotes on the discrepancy in pay between whites and blacks in the hunting industry makes Tanzanian newspapers occasionally. One stated that black PH's were paid $50/day while white PH's were paid $2,000/day. In no way did they try to differentiate between a PH without a vehicle and day-rates of an outfitter who owned the company and traveled the world marketing. IMO, the articles are to drive newspaper sales and cause division.

My first guess is the original poster may be a newspaper writer trying to get comments or side stories for further articles. Second guess is he is part of the shakedown or a disgruntled former employee. The last sentence in the quote above may be telling.

TZ has a long history of making ludicrous economic analyses.

The way these posts are written make me question the validity of the claims .

quote:

foreign Professional Hunters, are paid a monthly pay of $ 12,000

I was under the impression that a PH was paid a daily hunting rate and not a monthly wage, e.g. 10 day hunt = 10 days pay etc.
Based on the above figure the daily rate would equate to $400 and affordable only by the top-notch outfitters with high daily rates to the end user.

PHs who are working for a corporation are paid a monthly wage. IF the PH has a client base and is attracting clients to the operation, then they are easily worth $6,000 to $12,000 USD a month.

Most local "PHs" are not full blown Professional Hunters or licensed and capable enough to lead a dangerous game hunt. Most of these guys are Master Hunters and they are generally paid $500 - $1000 USD a month depending on their capabilities. Accordingly, there is ALWAYS a wage discrepancy between the two. You are paid based on your worth to the company and not just because you take up space - welcome to Life.

Unfortunately, the uninformed (like A Cry From TZ) confuse the two and simply do not understand the basics of how business is conducted. From that ignorance, they want to measure everything based on race.

If they know the wages and race of the PHs, they also know their names. So...