Ole Naiko speaks out on his share of escrow billions

Dar es Salaam. Former Tanzania Investment Centre (TIC) executive director Emmanuel Ole Naiko yesterday said he was surprised to learn that he was among the beneficiaries of the Tegeta escrow billions.

Mr Ole Naiko was in the list of well-known public figures said to have received millions of shillings from Mr James Rugemalira, a former IPTL shareholder.

The Citizen also learnt yesterday from sources close to Mr Rugemalira that he was preparing to issue a public statement on his role in dishing out billions “left, right and centre”.

According to documents filed in the investigation of the Sh306 billion scam and also produced in Parliament by the Public Accounts Committee (PAC), Mr Rugemalira gave away billions to top politicians, government officials and other individuals from his share of the escrow monies in suspect transactions from an account at Mkombozi Bank.

His company, VIP Engineering and Marketing, sold its 30 per cent shares in Independent Power Tanzania (IPTL) to Pan African Power (PAP) for $65 million (Sh129 billion), an amount Mr Rugemalira famously described as “just a few cents for tobacco.”

Efforts by The Citizen since last week to talk to some of the people said to have received a cut from the escrow cash, bore fruit yesterday when Mr Ole Naiko agreed to speak.

He said he had been taken aback by the news when it first began to emerge, but declared he had nothing to hide about the fact that he received the money. His account at Mkombozi was topped with Sh40.4 million from Mr Rugemalira.

He, however, told The Citizen that he did not know at first that there was such an amount in his account until he checked. “I rarely used this account and immediately I got notice of the deposit I went to inquire the source.

“I didn’t bother to ask any further questions because the person who had sent that money has been a long-time friend and I believed I didn’t have to ask where he got the money from,” said Mr Ole Naiko.

According to him, the money was deposited in March but he has kept an eye on it until now. “I am waiting to tell the truth to the investigation team that will be formed to unravel this escrow matter as proposed by Parliament,” said the former TIC chief who is now the Honorary Consul for Botswana in Tanzania.

He said there are people who don’t wish him well and are backing up a campaign to tarnish his image over the money. Asked on whether he will be ready to return the money, Mr Ole Naiko said he will give an answer to that to the team that will be formed to investigate them. “I will give the answer before a competent team that will come but for now I am waiting for any action which will be taken by the relevant authorities,” he said. Parliament recommended that all those who received the escrow money be made to refund it. As it was proceeds of a scandalous deal to rob taxpayer’s money.