Financial Crime World

FALSIFICATION OF LIST OF ELIGIBLE EMPLOYEES FOR LOANS GUARANTEED BY COMPANY LEADS TO FINANCIAL FRAUD

A shocking revelation has been made public regarding the falsification of a list of eligible employees for loans guaranteed by Peertech Company. It is alleged that suspects created and forged contracts, salary slips as well as work IDs and submitted these documents to banks in Dar es Salaam.

The Scale of the Fraud

According to sources, Peertech Company submitted forged documents to several financial institutions including:

  • NMB
  • CRDB
  • DT Bank
  • All BOAs in Dar es Salaam

This has led to a massive financial fraud, which is believed to have caused significant harm to individuals, distorted national security, and undermined public confidence in the financial sector.

The Consequences of Financial Fraud

Fraud is a serious criminal activity that can be committed in many ways or methods. It not only harms individuals but also disrupts economic activity and puts legitimate businesses at a competitive disadvantage.

In Tanzania, financial fraud is a growing concern. According to statistics from the Police Force, there was a declining trend of offenses related to illegal acquisition of property in 2019/2020. However, despite this decline, financial crimes remain a significant problem.

Healthcare Fraud

Healthcare fraud is another area that has been plagued by fraudulent activities. The Tanzania National Health Insurance Fund (NHIF) has reported that it received TZS 600 billion worth of claims but only paid out TZS 477 billion after thorough scrutiny in 2020. This indicates that there were significant irregularities and fraud in the healthcare system.

Some notable cases include:

  • 7,556 claims worth TZS 69.1 million that did not correspond with the names of the beneficiaries
  • Members receiving full blood picture examination more than once on the same day
  • Members receiving spectacles multiple times a year

Drug Trafficking

Drug trafficking is another serious issue facing Tanzania. The country’s location as an exit to six landlocked countries, porous borders, and persistent corruption present significant challenges to drug interdiction efforts.

International drug trafficking entities and courier networks transit through Tanzania to smuggle heroin from southwest Asia. The recent arrest of two Iranian nationals with a consignment of drugs in Tanzanian territorial waters is a stark reminder of the gravity of this issue.

Call to Action

These cases highlight the need for increased vigilance and cooperation between law enforcement agencies, financial institutions, and other stakeholders to combat financial fraud and related crimes. It is essential that we work together to ensure that our financial systems are secure and that fraudulent activities are detected and prosecuted promptly.

Sources

  • Police Force statistics
  • Tanzania National Health Insurance Fund (NHIF)
  • Controller and Auditor General (CAG) report for the period 2020-2021
  • Bureau for International Narcotics and Law Enforcement Affairs’ 2021 International Narcotics Control Strategy Report.