Is LAWRENCE MAFURU amongst the MOST CORRUPT in TZ in recent years?

The Tanzania Business Ethics Group looks at high profile individuals who could be amongst the MOST CORRUPT people in Tanzania (TZ)

Is LAWRENCE MAFURU amongst the MOST CORRUPT people in Tanzania in the past few decades?

Let us understand how we failed our country – so we can be sure never to repeat the same mistakes again. 

Lawrence Nyasebwa Mafuru

[​IMG] ​

Part 1

Brief outline of Lawrence Nyasebwa Mafuru :

He was born 1972

Education:
2013 – 2016 Master Business Administration (MBA) at University of Dar es Salaam ; and
1996 – 1998 Banking Certificate (CIB) at The Chartered Institute of Banking, London.

Employment:
1998 – 2007     Standard Chartered Bank Tanzania
2007 – 2010     National Bank of Commerce (NBC)
2010 – 2012     Tanzania Bankers Association Ltd
2010 – 2012     National Bank of Commerce (NBC)
Feb 2013 – Apr 2013 (3 months)   Government of Tanzania
Jan 2014 – Jan 2015 (1 year)          President’s Office
Dec 2013 – Mar 2015 (1.4 years)   Tanzania Investment Centre (TIC)
Jan 2015 – Dec 2016 (2 years)        Ministry of Finance – Treasury Registrar 
May 2014 – Present (3.7 years)     CRDB Bank PLC

Mafuru’s on-line LinkedIn profile tries to give the impression that he is God’s gift to Tanzania. He writes in his profile, amongst his many other duties:

“- To invest or dispose investments in public or statutory corporations and other state owned enterprises
– Supervise Public and Statutory corporations investments funds
– Make follow up and ensure government receives return from its investments either in form of dividends or contributions
– Monitor and evaluate performance of all state owned enterprises
– Ensure that all public and statutory corporations enters into performance contract with Treasury Registrar.” ​

If only it was all true, it would be very impressive. 
The fact is that Mafuru was quite the opposite of God’s gift to Tanzania.

In July 2012, at age 40, Mafuru was caught and in big trouble!!

A whistle blower report raised issues around irregular governance practices, fraud and corruption against the National Bank of Commerce (NBC) executive management team
The Board of Directors of NBC was forced to suspend Mafuru from the bank and to order an investigation.
We all know that unless investigations are official, like via the PCCB, the results can be anything that the Directors choose. 
In early October, the Board of Directors announced that Mafuru may return to his duties at NBC.
But justice always prevails and about 2 months later, in December 2012, Mafuru was gone from NBC forever! Is it surprising that he left behind at NBC scandals relating to corruption and fraud?

Then the real problems started for Tanzania. Mafuru started to work for our Government. And he started to have positions of power. We all know how POWER can be the basis for CORRUPTION and FRAUD if a person with weak morals and ethics and integrity has the power.

Sadly, the power given to Mafuru in his jobs working in Government proved to the world what kind of person was Mafuru.

To this day, analysts still wonder how Mafuru became ex- President Jakaya Kikwete’s “blue-eyed boy” starting when Mafuru headed the Finance Department in the President’s Office.

[​IMG] ​Mafuru (left) with ex-President Kikwete (right)

Unfortunately for Mafuru, when President Magufuli launched his war against corruption and fraud 2 years ago, we Tanzanian’s saw the light and the possibilities of a better life for us all. 

We realized, after the hard, unpleasant years living under Benjamin Mkapa and Jakaya Kikwete, suddenly here is a new broom to sweep our country clean of corruption, fraud, theft, negligence and more. We saw hope for a better tomorrow. 

Yet, Tanzanian’s were calling for investigations of corruption and fraud under Benjamin Mkapa and Jakaya Kikwete. The question is : Do we demand these investigations or do we better look ahead and use our resources and abilities to build the future and not re-create the past at the expense of wasting our future? That’s a separate debate all by itself.

Tanzanians know some (not all) of the failures of our past leaders. We know of the huge failure of Kikwete to appoint Lawrence Mafuru to the post of the Treasury Registrar. 
We know of the extra enormous failure of Kikwete to appoint Mafuru to the post of Statutory Manager of FBME Bank.

Mafuru’s close association with Kikwete protected him from prosecution over theft from Tanzania’s National Bank of Commerce when he was managing director. 

With the “glory” that Mafuru gave himself as head of the FBME Bank in Tanzania, the Lebanese brothers Ayoub-Farid and Fadi Saab, who were the owners of FBME, are said to have called him “our man.” What does that tell us?

Is it a surprise that Mafuru was one of Tanzania’s youngest bankers in a variety of positions at Standard Chartered Bank in Tanzania and they were accused of a string of banking offences during the previous decade – although somehow Mafuru’s name was not highlighted?

Is it a surprise that Mafuru was a close associate of the Kikwete, whose 10-year reign was characterized by massive corruption and the disappearance and murder of several journalists. 

Mafuru’s Protection
Mafuru’s close association with Kikwete apparently protected him from prosecution over the theft from the National Bank of Commerce (NBC) when he was managing director. Although he was suspended and re-instated for about 2 months only, somehow he was still “protected” after he left the NBC.

Kikwete appointed Mafuru the Treasury Registrar at Tanzania’s Ministry of Finance, and in addition, appointed him head of the Tanzanian operations of FBME, then the country’s largest commercial bank. 
Even whilst Mafuru was Treasury Registrar and head of FBME, he was hit by additional allegations of corruption when he refused a High Court order in May 2015, in a case brought by two businessmen, for Mafuru to deposit with the High Court, the amount of TSh 8 billion from FBME Bank. Mafuru’s contempt of court behavior was never explained, he was protected from punishment, and no reasons ever given why FBME Bank did not deposit the TSh 8 billion into the High Court. Needless to say, we know who was looking after the Saab brothers best interests at the FBME Bank.

Mafuru was reported to have launched controversial programs as Treasury Registrar that attracted the attention of authorities including accusing investors in privatized farms and businesses of being unsuccessful and threatening prosecution and confiscation.

However, Mafuru carried (maybe he still does?) Politically Exposed Person status (PEP) which has continued to protect him from prosecution although President Magufuli fired him as Registrar.  That was certainly no surprise from the new “Bulldozer”.

According to multiple reports by corporate investigation firms and others, Mafuru’s reputation and actions raised questions in turn over the honesty and integrity of the Tanzanian Central Bank for appointing him as head administrator of the FBME Bank. 
Mafuru was well-known to have a long history as a go-between (commission man) for organized Russian mafia gangs operating out of Russia and Cyprus, facilitating Russian laundered money in multiple Cyprus banks.

Part 2 of Lawrence Mafuru’s corrupt career to follow tomorrow – including :
Proof that Mafuru opened bank accounts for Somali Pirates
Proof that Mafuru was secretly and illegally drawing out monies from FBME (of course taking his commission also)
And more to follow…..

(Our thanks to Asia Sentinel for providing some information included above)

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OPEN LETTER TO PRESIDENT, DR. JP MAGUFULI – REF; BARRICK GOLD

By Samantha Cole of Tanzania Business Ethics

The Swahili version follows below

Dear Mr. President 

Following your brilliant negotiation with Barrick Gold a few weeks ago, you made a historic speech at the ceremony to award certificates to those special people who were involved in the Barrick Gold case during the past months.

In your historic speech, you promised to our People that when they do their business, then you will support them 100% whether it is mining, oil, and gas and anything they do, you will support our business people. 

In this spirit of your promise, Mr. President, we appeal to you to look at the following facts regarding how terrible our local business people suffer in the legal spider-web of Barrick Gold – Acacia Mining.   

THE FACTS FROM ACACIA MINING WEBSITE:

In the Acacia Mining website, there is a section with past financial information.  Here is the link
http://www.acaciamining.com/investors/reports/2017.aspx  

Let us look only from 2012:
 

2012

30 June 2012 – Financial Statements 
Total number of lawsuits        :  approx. 201 legal cases
Total amount of legal claims  :  US$ 31.5 million
These exclude legal claims from our TRA against Barrick Gold.

31 December 2012 – Financial Statements 
Total number of lawsuits        :  approx. 235 legal cases
Total amount of legal claims  :  US$ 30.3 million
These exclude legal claims from our TRA against Barrick Gold.  

2013  

30 June 2013 – Financial Statements
Total number of lawsuits        :  approx. 254 legal cases
Total amount of legal claims  :  US$ 73.3 million
These exclude legal claims from our TRA against Barrick Gold.

31 December 2013 – Financial Statements 
Total number of lawsuits        :  approx. 333 legal cases
Total amount of legal claims  :  US$ 142.8 million
These exclude legal claims from our TRA against Barrick Gold.

2014

30 June 2014 – Financial Statements 
Total number of lawsuits        :  approx. 316 legal cases 
Total amount of legal claims  :  US$ 163.6 million 
These exclude legal claims from our TRA against Barrick Gold.

31 December 2014 – Financial Statements 
Total number of lawsuits        :  approx. 289 legal cases
Total amount of legal claims  :  US$ 184.7 million
These exclude legal claims from our TRA against Barrick Gold
The following companies are listed amongst those fighting for their rights against Barrick:
Diamond Motors Ltd  :  US$ 17.2 million
MDM Engineering       :  US$ 15 million

2015

30 June 2015 – Financial Statements
Total number of lawsuits        :  approx. 333 legal cases
Total amount of legal claims  :  US$ 286.7 million
These exclude legal claims from our TRA against Barrick Gold.
The following companies are listed amongst those fighting for their rights against Barrick:
Diamond Motors Ltd  :  US$ 17.2 million
MDM Engineering       :  US$ 15 million

31 December 2015 – Financial Statements 
Total number of lawsuits        :  approx. 341 legal cases
Total amount of legal claims  :  US$ 280 million
These exclude legal claims from our TRA against Barrick Gold.
The following companies are listed amongst those fighting for their rights against Barrick:
Bismark Hotel Limited : US$ 115  million 
Diamond Motors Ltd     :  US$  17.2 million
MDM Engineering          :  US$   15 million

2016

30 June 2016 – Financial Statements 
Total number of lawsuits        :  approx. 255 legal cases
Total amount of legal claims  :  US$ 234.9 million 
These exclude legal claims from our TRA against Barrick Gold. 
The following companies are listed amongst those fighting for their rights against Barrick:
Bismark Hotel Limited : US$ 115  million 
Diamond Motors Ltd     :  US$ 17.2 million
MDM Engineering          :  US$  15 million

31 December 2016 – Financial Statements 
Total number of lawsuits        :  approx. 185 legal cases
Total amount of legal claims  :  They did not disclose.  What are they hiding?
These exclude legal claims from our TRA against Barrick Gold. 
The following companies are listed amongst those fighting for their rights against Barrick: 
Bismark Hotel Limited :  US$ 115  million 
Diamond Motors Ltd     :  US$  17.2 million
MDM Engineering          :  US$   15 million
Petrolube                          :  US$ 35.1 million

2017

30 June 2017 – Financial Statements 
Total number of lawsuits        :  They did not disclose.  What are they hiding?
Total amount of legal claims  :  They did not disclose.  What are they hiding? 
These exclude legal claims from our TRA against Barrick Gold – Acacia Mining.
The following companies are listed amongst those fighting for their rights against Barrick:
Bismark Hotel Limited  : US$ 115  million 
Diamond Motors Ltd      :  US$ 17.2 million
Petrolube                            :  US$ 35.1 million


Every financial report they write the same story that Barrick-Acacia Management  are  of  the  opinion  that  the  claims  do  not  have  substance  and  that  they  will  be  successfully  defended. 

In other words, Mr. President – in the eyes of Barrick Gold, all these hundreds of legal claims against Barrick are all invalid and our People will all lose. 

How can it be that every Tanzanian with a legal claim against Barrick is wrong? 

We urge you, Mr. President, on behalf of the hundreds of Tanzania people who are stuck inside Barrick Gold’s legal spider-webs – they are stuck because Barrick Gold’s lawyers know how to “play the legal game” and how to cause more damages and disappointments for our Peoples. 

They know how to extend legal cases for years and years (as you see in the facts above).

They know how to do tricks to cause our People more damages so that our Peoples will eventually be forced to accept small settlements because the legal fees are killing our people. 

Please Mr. President – let us all begin (Tanzania and Barrick Gold) with a clean plate, with peace and understanding, and with no legal cases. 

Your promise to support our people is not to interfere with Justice but at least to make Barrick stop their legal tricks and focus on gold mining and they must stop hurting our Brothers and Sisters trying to do honest business with Barrick.

Thank you, Mr. President. 
God Bless you, and God bless Tanzania and God bless our Nation.

SWAHILI VERSION

BARUA YA WAZI KWA RAIS MAGUFULI

Mpendwa Mheshimiwa Rais,

Mheshimiwa Rais, kutokana na mafanikio makubwa katika majadiliano na Barrick Gold wiki chache zilizopita, ulitoa hotuba ya kihistoria katika sherehe za kukabidhi vyeti maalum kwa wazawa (wazalendo) walioshiriki kwenye majadiliano na Barrick Gold kwa miezi kadhaa.

Katika hotuba yako ya kihistoria, ulihaidi kuwasaidia na kuwaunga mkono wazawa ambao wanafanya ama wanataka kufanya biashara kubwa kubwa, kwa mfano madini, mafuta na gesi asilia n.k.

Mheshimiwa Rais, tumefanya tafiti na kuandaa ukweli ufuatao hapo chini ambao unaonesha ni jinsi gani biashara za wazawa wa kitanzania zinaumizwa na Acacia Mining/Barrick Gold.

THE FACTS IN ENGLISH FROM ACACIA MINING WEBSITE:

In the Acacia Mining website, there is a section with past financial information.  Here is the link
http://www.acaciamining.com/investors/reports/2017.aspx

Let us look only from 2012:

(Please see above all the facts from 2012)

Every financial report they write the same story that Barrick-Acacia Management  are  of  the  opinion  that  the  claims  do  not  have  substance  and  that  they  will  be  successfully  defended.

In other words, Mr. President – in the eyes of Barrick Gold, all these hundreds of legal claims against Barrick are all invalid and our People will all lose.

How can it be that every Tanzanian with a legal claim against Barrick is wrong?

Tunakuomba Mheshimiwa Rais, kwa niaba ya mamia ya watanzania wazalendo ambao wanamadai yao kwa Acacia Mining/Barrick Gold ambapo wanasheria wa kampuni hii ya kibepali (ambao wengi wao ni kutokea nchi za kibepali) wanatumia mabavu na mabilioni ya pesa kuwadidimiza wananchi wetu.

Wabepali hawa wa Acacia Mining/Barrick Gold wameishika mifumo ya kisheria ya kimataifa na hivyo wanadharau watanzania na mifumo ya sheria ya kitanzania.

Mheshimiwa Rais, tunashukuru jitihada zako katika kusimamia rasilimali za nchi ya Tanzania. Tunaomba uangalie mifano hapo juu ya jinsi Acacia Mining/ Barrick Gold wanavyowaminya wazawa wa Tanzania kwa kutumia mabilioni kulipia wanasheria wa kimataifa ili kuminya haki na sheria kwa watanzania. Hivyo wazawa wanaishia kudhulumiwa haki zao sababu hawana uwezo wa kifedha kushindana na wabepali wa Acacia Mining.

Mheshimiwa Rais, tunaomba huu ndio uwe mwanzo mpya kati ya nchi yetu ya Tanzania na Barrick Gold, katika kufanya kazi kwa kuheshimiana na kuelewana, na inabidi Barrick waweze kumalizana na wananchi wa Tanzania walionyanyaswa na Acacia Mining kwa muda mrefu. 

Ahadi yako ya kuwajali na kuwasaidia watanzania wanaonyanyaswa ni ya ujasili mkubwa sana na inabidi Barrick waendelee kufanya biashara ya madini wakiwa wameshamalizana na wazawa wanaowadai. 

Ahsante sana Mheshimiwa Rais.
Mungu akubariki, na Mungu aibariki Tanzania

 

BARRICK’s ACACIA MINING’S LEGAL PROBLEMS GO UP, UP, UP, UP >>>

By Samantha Cole of Tanzania Business Ethics

 

Acacia’s Adv. Karel Daele’s slap in the face of the Tanzania legal system

In our Holy Bible:  Ecclesiastes 1:9
That which has been, is that which will be, And that which has been done, is that which will be done. So there is nothing new under the sun.

Last year, on June 02, 2016, the local newspaper, RAIA TANZANIA, on page 4, published an article in which it was reported that Adv. Karel Daele must remove himself as Adjudicator in the matter between Bismark Hotels and Acacia Mining because of his conflict of interest.
Our anti-corruption group decided to research and report on this to our readers.

We published our full results in this report called:
ACACIA MINING – BISMARK HOTEL: DID ADV. KAREL DAELE ACT UNETHICALLY?https://tanzaniabusinessethics.wordpress.com/2016/06/02/acacia-mining-bismark-hotel-did-adv-karel-daele-act-unethically/ 

This month, we found that Karel Daele is back in the news relating to the case here in Tanzania of the small family business in Mwanza called Bismark Hotel.

To remind our readers:  In July 2015, Bloomberg News was first to expose the story of the legal dispute between the giant Barrick Gold – Acacia Mining and the Mwanza family business.
Bismark lost its land and mining license through negligence and inefficiency on Barrick-Acacia’s side in 2011 and then almost four years later, Acacia Mining’s attempts to upset the legal processes of the Mining Act of 2010 by collusion with dishonest officials of the Ministry of Energy and Minerals.

Adv. Karel Daele was selected as Barrick Gold – Acacia Mining’s adjudicator in the legal dispute.  Of course, he jumped at the opportunity (big $$ fees in his pocket) even though there was a conflict of interest.

Later, Bismark applied to the High Court in Dar es Salaam to force Barrick – Acacia to change Karel Daele for a new Adjudicator who is NOT conflicted.

Our sources tell us that the High Court Judge set dates earlier this year for the sides to present their cases.  Bismark went to court as required.  Karel Daele did NOT go and he did not even send applications for extension or to apologize for being absent.  Finally, the Judge instructed a written “warning” to Karel Daele to be published in public.

A few weeks ago, the High Court notice against Karel Daele was published in the UK Gazette :
See:  https://www.thegazette.co.uk/notice/2885506  (Text included below)

Once again, we see the arrogant, controlling, self-superior attitudes of Barrick Gold – Acacia Mining against our Tanzania People and moreover, our Tanzania legal system.  Do they have no shame?

Can anyone imagine Karel Daele ignoring the High Court in London?

There is nothing new under the son with anyone or anything connected to Barrick Gold and Acacia Mining.  As the British say : “same old, same old”.

BUT – Came along President J.P. Magufuli, and day after day, we are seeing improvements for our country.

Maybe Karel Daele will continue to ignore the High Court warning and maybe he will NOT appear before the judge later this month as instructed in the UK Gazette.  Maybe he knows that he is conflicted and Acacia Mining does not want to face more failure and embarrassment?  Maybe Acacia Mining will foolishly dig in their heels deeper and continue to fight our Mwanza Brothers?

One thing is for certain under God’s blue skies.  Everything must improve soon because we will own 16% of Acacia Mining    🙂 

GAZETTE NOTICE AGAINST KAREL DAELE
https://www.thegazette.co.uk/notice/2885506

IN THE HIGH COURT OF TANZANIA
(DAR ES SALAAM DISTRICT REGISTRY)

AT DAR ES SALAAM

MISC. CIVIL APPLICATION NO. 21 OF 2017

BISMARK HOTELS………………….APPLICANT

VERSUS

KAREL DAELE……………………………………1ST RESPONDENT

PANGEA MINERALS LTD……………………2ND RESPONDENT

BARRICK EXPLORATION AFRICA LIMITED…………………………………3RD RESPONDENT

ACACIA MINING PLC…………………………..4TH RESPONDENT

JOSEPH .S. WARIOBA…………………………..5TH RESPONDENT

SUMMONS FOR PUBLICATION

TO:

KAREL DAELE
MISCHON DE REYA,
SUMMIT HOUSE,  12 RED LION SQUARE
LONDON WC1R 4QD
UNITED KINGDOM

WHEREAS, the above mentioned applicant has instituted an application against you at the High Court of Tanzania (Dar es salaam Registry) the facts of which may be found on request in the Court file, you are hereby summoned to appear in this Court in person or by a pleader duly instructed and able to answer all material questions relation to the application or who shall be accompanied by some person able to answer all questions on 30th day of November, 2017 before Hon. A. Munisi, Judge to answer the claim. You must be prepared to produce on that day all the documents upon which you intend to rely in support of your defence.

TAKE NOTICE that in default of your appearance on that day aforementioned, the application will be heard and determined in your absence.

GIVEN under my HAND and SEAL of the Court this 2nd day of OCTOBER 2017.

DEPUTY REGISTRAR
HIGH COURT OF TANZANIA
DAR ES SALAAM
IN THE HIGH COURT OF TANZANIA
AT DAR ES SALAAM

MISC/CIVIL APPL. NO. …..21/2017

BISMARK HOTELS…..APPLICANT

VERSUS

KAREL DAELE and OTHERS……..RESPONDENT

NOTICE OF DATE OF MENTION

TAKE NOTICE that, the above mentioned case has been fixed for mention on the 30th day of November 2017 at 9:00 AM, before Hon Munisi ……Judge

YOU ARE required to appear in this Court without fail and must produce on that day all the documents upon which you intent to rely in support of your case.

GIVEN under my HAND and the SEAL of the COURT this 27TH day of SEPTEMBER 2017.
DEPUTY REGISTRAR
DAR ES SALAAM

TO BE SERVED UPON:
Hon JOSEPH .S. WARIOBA
NYALALI, WARIOBA & MAHALU LAW ASSOCIATES
HAILE SELASSIE/GHUBA ROAD, HOUSE NO. 501/13 OSTERBAY
DAR-ES-SALAAM

 

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BARRICK GOLD SEES THE FUTURE IN TANZANIA – ACACIA MINING LOST ITS WAY FORWARD

By Samantha Cole of Tanzania Business Ethics

It’s clear Acacia Mining urgently need a change of leadership. Brad Gordon & others must resign.

Anyone walking around Dar es Salaam this past week has heard non-stop talk about Barrick Gold. If anything is the talk of the town this week, it’s Barrick Gold and the deal our President, Dr. J.P. Magufuli, finalized with the Barrick Chairman, Dr. J. Thornton.

Yes, many Tanzanian’s were skeptical during the past few months ago.
Yes, many Tanzanians were suspicious as the weeks and months of silence went past.
After all, does not history repeat itself? In the past, our ex-Presidents usually walked away from discussions giving the ‘cream’ to overseas companies and leaving Tanzania with the crumbs.

But no, this is the NEW TANZANIA and our President is not only the “broom that sweeps clean”, but President JPM is our “bulldozer that cleans everything in front of it”.

Dr. J. Thornton learnt that lesson very quickly. He learnt that Tanzania is no longer the colony to play in. The golden years of earning huge profits overseas and leaving only crumbs here (compared to their profits) are all over. Finished. Past. History.

The Barrick Chairman met President Magufuli in the middle of June this year. For more than FOUR MONTHS Barrick used all their resources and specialists to discuss and negotiate with our Tanzania secret team. After about 18 weeks of these negotiations, the Barrick Chairman obviously realized that the winds of change in Tanzania were too powerful to change and he knew that the time had come to look into the future and work with Tanzania instead of against it (meaning leaving us with the crumbs).

Last week on Thursday, October 19, 2017, Dr. Thornton came back to our President and we all know the results of that meeting; 16% ownership in the 3 mines, 50% share in profits, US$ 300 million cash payment.

At Barrick Gold, the next man under Dr. Thornton comes Kelvin Dushnisky. He is the President of Barrick Gold worldwide. We also know that Mr. Dushnisky is the Chairman of the Acacia Mining Board of Directors. Therefore, not only is Barrick Gold tied into Acacia Mining by owning 63.9% of Acacia, but we also see clearly that even the top management of Barrick and Acacia are tied in together.

Whilst Barrick Gold are praised for moving forwards and looking to the future for better business with Tanzania, our “friends” at Acacia Mining are stuck in the past and fighting the optimism and positive spirit and direction that their mother company is trying to lay out before them. But wait, we have seen something similar to this in the past. And we even wrote about it, before.

Brad Gordon, the CEO of Acacia Mining, is doing his best to damage the deal that Dr. Thornton finalized with President Magufuli. To be honest, we are not surprised. This is almost a perfect repeat of Brad Gordon’s terrible performance as CEO of Intrepid Mining only 4+ years ago.

In fact, on July 14, 2016, we wrote about this exact scandal. Here is the link:
https://tanzaniabusinessethics.wordpress.com/2016/07/14/will-acacia-minings-honeymoon-with-the-gold-price-be-short-lived/

Here is a short extract from the above article (from July 14, 2016):

In March 2013, the media exposed a report of Mr. Gordon (at that time, the CEO of Emporer Mines) intimidating the Intrepid partner (at that time), Mr. Paul Willis, and forced him into signing a release for his rights to the Indonesia project. The report stated that Mr. Willis was outnumbered nine-to-one, including Intrepid CEO, Brad Gordon, and legal counsel Vanessa Chidrawi and six locals, armed with revolvers in holsters.

The Business Day claims they obtained an email to show how Intrepid conspired with the local partners to squeeze Paul Willis out of the venture.

Reports that the sole reason that the Tujuh Bukit Agreement expired was that Emperor Mines was too busy with the merger with Intrepid Mines and they left it until the last weeks to try and complete documents with the Indonesian’s that at best would have taken 3 months to complete. Intrepid simply left it until too late and “missed the boat” with the Indonesian’s, forcing the deal into crisis.

Reports were clear that Mr. Gordon spent aggressively (almost US$100 million) to prove up the huge scale of Tujuh Bukit without having finalised agreements to secure a direct stake in the project. Another great “achievement” by Mr. Gordon!! Who spends money without finalized agreements?

Why is there no surprise when we see that shortly after everything was exposed in the media, Mr. Gordon has started negotiating secretly with Barrick and only a few months later, in August 2013, Mr. Gordon resigns from Intrepid and walks away from the massive black hole in Indonesia that Mr. Gordon, as CEO, has left Intrepid ??

The good news for Intrepid was that Mr. Gordon had left! 

Only six months later, in February 2014, Chairman Ian McMaster announced Intrepid successfully brings the end of the dispute with the Indonesian’s and a few months later, in June 2014, Intrepid receive US$ 80 million.​

And now, here in Tanzania, we have almost the same depressing picture.
Brad Gordon creates a huge mess in Tanzania via Acacia Mining – guilty of tax evasion, alleged fraud and corruption, falsified exports, and the list goes on. And now the Chairman comes to clean up the mess, much against Brad Gordon’s wishes – causing more problems and a bigger black hole. Mr. Gordon and his top management circle, including Peter Spora, Deo Mwanyika, Charlie Ritchie, Peter Geleta all need to join Brad Gordon in the line handing in their resignations (or if not, be fired). Barrick Gold need to send in new, fresh, honest, mining professionals to start a clean page working with Tanzania as partners.

At least Ambassador Juma V. Mwapachu saw the writing on the wall and a few months ago, in mid-July, he took his bags and ran away from the Acacia Mining Board of Directors. Good move!!

On June 1, 2017, we wrote a public email letter to Dr. Thornton suggesting that the time was right for resignations at Acacia Mining. Here is the link:
https://tanzaniabusinessethics.wordpress.com/2017/06/01/time-for-resignations-at-barrick-acacia-mining/
Two weeks later, Dr. Thornton was sitting in front of our President at the Ikulu (State House) in Dar es Salaam. 

President Magufuli’s public speech earlier this week was amazing! This is the link:

The speech sends us all the right messages. Amongst many things JPM spoke about, his speech was a call to all us Tanzanians to stand together and work together and build together.

How do we build with negative, damaging and undesirable people like Brad Gordon, Peter Spora, Deo Mwanyika, Charlie Ritchie, Peter Geleta and we are sure Barrick knows who else.

Without a doubt, Gordon and Mwanyika should be the first to go – Gordon needs a new, fresh replacement CEO and Mwanyika needs no replacement as his job as “Mr. Fix-It” in Government offices must definitely fall away. The days to pay our Sisters and Brothers in Government positions to “Fix-It” are all over. As is written above – this is the NEW TANAZANIA.

God Bless President Magufuli
God Bless the Tanzanian People

Tanzania Business Ethics
Samantha Cole

 

SUMMARY OF BARRICK GOLD’S BAD NEWS

BARRICK GOLD WILL REPORT THEIR FINANCES ON OCTOBER 26:

By Samantha Cole of Tanzania Business Ethics

Summary of Barrick Gold’s Bad News:

> A very BIG drop in Barrick Gold’s sales on a year-to-year and sequential basis in the third quarter.

> To make matter worse, Barrick did not receive much support from better gold prices.

> The above will almost definitely pull DOWN Barrick’s earnings, and cash flows.

SHOULD THE WORLD BE SURPRISED?

Analysts say that things changed at Barrick when Chairman John Thornton was forced to get involved in Tanzania as Barrick’s daughter company, Acacia Mining, in which Barrick owns majority of 63.9%, slipped deeper and deeper into their own-made mud slide.

In July, Barrick Gold announced that it would start to pre-release the quarterly production numbers in order to increase transparency and strengthen disclosure. Apparently, this type of disclosure is a FIRST for Barrick Gold in all its years in business. Surprise surprise!

Barrick’s production report for the third quarter stated:
Production: 1.24 million ounces 
Sales : 1.23 million ounces

This means Barrick’s sales have fallen 12.2% from Quarter 2 in 2017 (sales then were just under than 1.4 million ounces.
Also, Barrick’s sales fell 11.5% from Quarter 3 in 2016 (sales then were 1.39 million ounces).

Barrick Gold reported a drop in sales from all their operating units, including the crucial USA Barrick Nevada mine where sales dropped significantly.

Barrick Gold’s daughter company, Acacia Mining, continues to struggle with weak production and weak sales due to the dispute with our Tanzanian Government over tax evasion and fraud exports and other issues reported to President Magufuli by his two Committees earlier this year.

Barrick chairman, John Thornton came flying into Dar es Saalam thinking he can turn our President into one of his “victims” – but he did not realize that this is the NEW TANZANIA and our “Bulldozer” President is very wide awake and his care and love for Tanzania is the highest on all priority lists. Therefore, the situation remains until our President is ready to make changes.

For two years, our Anti-Corruption lobby has written to the bosses at Barrick Gold and also Acacia Mining to ask them to come personally to Tanzania to clean up all their mess here. It is undisputed that their local “Fix-It” people were making their company sink deeper and deeper into trouble. Of course, we are Black Tanzanians and since when do rich Whites take us Blacks seriously. After all, regardless of the double standards and hypocrisy they write on their websites and in their speeches, they think Tanzania is still a colony and that colonization is still alive here.

However, our President has proved that the NEW TANZANIA demands new systems and new methods and these mining giants are going to have TO SHAPE UP OR SHIP OUT!

We have written over and over again that our wish is that Acacia Mining will be successful in our country… IF they will pay their taxes, their export royalties and they will NOT allow rape, murder, destruction to our villages and properties and they will stop creating devastation in our environments.
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MORE DECEPTION & SCAM FROM BARRICK GOLD & ACACIA MINING

By Samantha Cole of the Tanzania Business Ethics Group 

Do those billionaire gold miners have no shame? We see their forked tongues over and over.

A public letter to our President, Dr. John P. Magufuli
Copies to Prime Ministers of Canada and England, Barrick, Acacia and many more – please see below.

Dear Mr. President, Dr. Magufuli

On 14 February 2017, we sent you a copy of our website blog, “Acacia Mining – Buzwagi Mine Deception & Scam in President Magufuli’s Face”.  Here is the link:
https://tanzaniabusinessethics.wordpress.com/2017/02/14/acacia-mining-buzwagi-mine-deception/

At that time, Barrick Gold, 63.9% owners of Acacia Mining were DESPERATELY trying to finalize the merger of Acacia Mining into Endeavor Mining.  Thank God that did not happen.  Better the devil we know than the devil we don’t know.

And the devil we know is continuing with their dishonesty and deception, Mr. President, right in your face again.  Your Nation are all watching for results in the negotiations between your team and Barrick Gold.  Whilst these negotiations are happening, in true Tanzanian hospitality and positive spirit, please look at the trickery and corrupt news that Barrick-Acacia are feeding to their shareholders via the media:

Fact:  4 October 2016
The Buzwagi Mines’s Sustainability Manager, Mr. George Mkanza, told journalists that there was no hope for Buzwagi to do better after the year (2016).
He added that production declined and the company incurred a big loss and that they lost Sh40 billion during the first half of 2016.
The Planning Manager, Ms. Zonnastraal Mumbi, complained that Buzwagi only has the potential to produce under 900,000 ounces of gold and other sad woes.
The Business Improvement and Mining Manager, Mr Rodney Burgess concluded by saying that Acacia would close the mine in December 2017.

Stock brokers at the Dar es Salaam Stock Exchange said that these Acacia announcements were really actually threats to close Buzagwi Mine in retaliation against the you, Mr. President who, just weeks before the announcement,  publicly told Acacia Mining to go back home if they do not make profits (but they declare hundreds of millions of Dollars in dividends overseas??).

In addition, analysts said that the timing of Acacia’s announcement to close Buzwagi mine end of 2017 was also planned to scare you, Mr. President and also the Appeal Board who was exactly at that time dealing with Barrick Gold and Acacia Mining’s appeal against the Tax Evasion guilty verdict handed down about six months earlier.

Fact:  14 February 2017:
Barrick-Acacia were in the middle of their merger discussions.  Brad Gordon, also known in the media  as the “Mining Bad Boy” of Tanzania,  announced to the media that Acacia would boost its gold production at its Buzwagi mine by 40 per cent in 2017. Of course, Acacia’s shares jumped UP six percent that same morning.

So in October 2016, Barrick-Acacia use the closure of the Buzwagi mine as a threat against the President and to try scare him into taking a lower profile position against Acacia Mining and then suddenly, hocus pocus, only a matter of a few months later, Endeavour Mining pops up onto the Tanzania mining scene and the “Mining Bad Boy” does a 180 degree turn and tries to deceive the public and Endeavour Mining with the announcement that Acacia expect a 40 percent boost from a mine-life extension of Buzwagi gold mine in 2017.

Mr. President, what Barrick Gold and Acacia Mining did NOT calculate into their corrupt plans, was that t our President Magufuli would NOT be afraid of their threats and would NOT crumble at the knees.  They still don’t realize that Colonization is history!

In fact, not only were you not afraid of their threats, you actually shocked them so deeply that the big boss of mother company, Barrick Gold, came running to talk to you!

Fact:  22 March 2017:
Only a matter of about five weeks later, after Acacia’s announcements on 14 Feb 2017 about the 40 percent boost at Buzwagi Mine,  Endeavor Mining announced that they suspended merger talks with Acacia (thank the Good Lord).  Obviously Endeavor saw the truth behind the decades of corruption, fraud, tax problems, false export declarations and more, and they ran away from the merger table as quick as they could.

Fact:  18 May 2017:
Mother company Barrick Gold and daughter company Acacia Mining are standing all alone in the world.  What happened to the 40 percent boost from Buzwagi?
On this day, Buzwagi General Manager ,Stewart Hamilton, wrote in an internal memo (as reported by The Citizen newspaper) that the company will stop the mining activities at the site in December (2017)….

The analysts were all correct about the deception of the yo-yo announcements made only for Endeavor Mining and the stakeholders.

Fact:  22 September 2017:
Hocus Pocus strikes again and Barrick – Acacia have wonderful news.  Suddenly, they are changing Buzwagi Mine and the mine is now designed to maximize gold doré (bars) production.  Should we be surprised?  After all, it is public knowledge that Acacia Mining have been exporting sand ore from its mines and NOT declaring the true contents and value of the sand ore.

Mr. President, we are all confident that your minerals investigating team will have the capability to find where the sand ore came from, what mines it came from, what areas it came from.  Even though Barrick – Acacia deny the charges, they think Tanzanian’s cannot put one and one together to see the truth.

Analysts told us that this announcement made (about the gold bars from Buzwagi) a few days ago did not have any influence at all on Acacia Mining’s share value in the London stock exchange.  Actually, the analysts added, the market sees the value today in Acacia Mining and that is why their shares are struggling.  After all, last year in August, the shares almost passed the 600 mark.  Acacia was really the “up & coming” company to watch in the mining industry.  From there, it has been downhill all the way.  At the last week of July, the shares collapsed to under the 160 mark and since then, the share value is struggling and limping along.

We have always wanted Acacia Mining to succeed in Tanzania.  We have written this dozens of times.  However, their success must be unconditionally and tightly bound to the ethical, moral and honest ways of business in our country.  No more fraud.  No more corruption.  No more deception.  No more tax evasion.  No more murder.  No more rape.  No more destruction to our villages.  No more devastation to our environment.  We believe all Tanzanians with give you their blessings to make your millions from our gold BUT only in with integrity and honor.

May God bless you and grant you wisdom and understanding for your loyal and dedicated work that you do for our country.

May God bless Tanzania and all our Nation.

Samantha Cole
Tanzania Business Ethics Group

Copies to:
Tanzania Government officials
Prime Minister Justin Trudeau
Canadian Government officials
Prime Minister Theresa may
British Government officials
Barrick Gold Directors & Management
Acacia Mining Directors & Management
Journalists & Social Media worldwide
BSR Conference and all 2016 speakers
U.S. Justice Department’s Office of Special Investigations
Office of the U.S. Solicitor General
Georgetown University Law Center.
Trace International
American Conference Institute’s Global Advisory Board for anti-corruption
UN Global Compact Network
Ethisphere Magazine
The Law Firm 500
And others

 

Is Barrick Gold – Acacia Mining about to STING President Magufuli & the Tanzania Nation?

By Samantha Cole of Tanzania Business Ethics

CHUI HAGEUKI MADOADOA !!

Dear Hon. President Magufuli

Last week, after the President’s meeting with John Thornton, we wrote a letter to you that we believe there is another agenda to Barrick’s sudden and urgent need to meet the President. We wrote Chui hageuki madoadoa – A leopard cannot change its spots and according to the media reports over the past few days, we see how correct we are about these Canadian and British millionaire businessmen.

Only five days ago, the following words from the Hon. President were quoted in the media worldwide:
If they (Acacia Mining) accept that they stole from us and seek forgiveness in front of God and the angels and all Tanzanians and enter into negotiations, we are ready to do business.” Even as Thornton flew across the world in his private jet, he could have thought long and hard about the Hon. Presidents words about the need to accept the theft and to seek forgiveness. We believe there was only one thought in Thornton’s head – to put on the best show for the world media so the company shares turn around and go up and the stock exchange analysts start looking positively again on Barrick Gold and Acacia Mining.

Thornton’s comments in his press release after meeting the President was telling us they will look at every claim of our Presidents two Committee reports and they discuss one claim after the next. He promised NOTHING else.
Mr. President, CHUI HAGEUKI MADOADOA and they will fight us and argue and dispute and use their media power to fight Tanzania. We can already see their arrogance and aggression in the media this weekend.

Please look at how they feed “The Economist” in London with lies and terrible insults about the Hon. President. And such insults not even 48 hours after the Barrick boss was hosted so warmly and elegantly by the Hon. President.
Is this the way they demonstrate “… accept that they stole from us and seek forgiveness in front of God and the angels… “?

The Economist in London wrote that the Hon. Presidents gesture to Thornton “could hardly have been more fork-tongued.” What a disgusting insult to the Hon. President!
Google defines “fork-tongue” as: to deliberately say one thing and mean another or, to be hypocritical, or act in a duplicitous (two-faced) manner. 
Mr. President, do those people have no shame as to be so insulting? The Economist goes on to describe Tanzania as having “… initially wooed (Barrick) into the country by generous tax concessions.” As if to say there was no gold here and let’s not talk about the hundreds of millions (billions?) of US Dollars of dividends to overseas shareholders whilst they defraud our country of the little export royalty that should be paid. Thornton received warm hospitality from the Presidency and they feed these lies to the media? If anyone here is two-faced, it is Barrick – Acacia!

Even worse, Mr. President, please look at what Brad Gordon, CEO of Acacia Mining said in a telephone interview with MiningMx (a South African media company) the day after Thornton’s meeting with the Hon. President:
Brad Gordon rejected the claims made in a report by Bloomberg – that Barrick is ready “to pay all the money it’s expected to pay Tanzania”. Who is fork-tongued?
Also, Gordon said negotiations had yet to begin and the negotiating teams from both sides had yet to be appointed. So we see again (same as I wrote last week – they will continue to fight and dispute).
Also, Gordon said Acacia’s response to these assessments and allegations had not changed from the statement issued on June 12 in which Acacia said: “Acacia strongly refutes these new unfounded allegations. We have always conducted our business to the highest standards and operated in full compliance with Tanzanian law.” Who is fork-tongued? Barrick boss comes supposedly with one agenda (which is a lie anyway) and the Acacia boss has another agenda with no shame at all.
Finally, Gordon said “John Thornton wanted to experience the situation on the ground for himself and that’s why he was in the country.” Thornton did not come to Tanzania to fix the situation. He came to fix and boost their share prices!

Mr. President, Tanzanian’s were shocked on Wednesday after the meeting with Thornton when Mr. Ian Myles, Canada’s High Commissioner in Dar es Salaam said to reporters (on the video):
Canada is very proud that it expects all its companies to respect the highest standards, fairness and respect for laws and corporate social responsibility. We know that Barrick is very much committed to those values.
It is so insulting that these Canadians and British still think they can trick us with their fancy nonsense “spin” politics and dishonesty. What values is Barrick committed to? Have our nation not witnessed with our own eyes killings? rape? arson and burning our homes? destruction to our environment? poison in our water? corruption? fraud? hundreds of legal cases with local Tanzanian companies who are abused, bullied and suffer? and the list goes on. What “values” is Ambassador Myles boasting about? How dishonest and unethical to stand there and lie about values. He should rather say NOTHING because every country where Barrick operates has a long, long list of illegal activities and crimes.

Chui hageuki madoadoa – A leopard cannot change its spots. 

The Tanzania People are behind you, Mr. President. Barrick will arrive with the most expensive specialists and lawyers and accountants that money can buy. Their intention and focus will be to belittle our two President’s Committee who prepared the two mineral reports. We trust that the Hon. President will prepare to have a Team of similar standing, experience and know-how, to oppose these Godless, shameless Canadians and British who have little or no values, standards, fairness nor respect for laws and corporate social responsibility.

May God bless our President with wisdom and understanding to see through these vicious business people who prey on our land, on our minerals and on our People.
Amen.

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