Financial Crime World

Tanzanian Company Under Fire for Forged Documents, Lending Scheme

A Major Scandal Rocks the Financial Sector

A significant scandal has hit the financial sector in Tanzania after it emerged that Peertech Company, a local firm, had submitted forged documents to several banks and other financial institutions to secure loans. The company created fake contracts, salary slips, and work IDs before submitting them to NMB, CRDB, DT Bank, and all BOAs in Dar es Salaam.

Financial Fraud: A Serious Offense

Financial fraud is a serious offense that can cause significant harm to individuals, distort national security, and undermine public confidence in the financial sector. It can also disrupt economic activity and put legitimate businesses at a competitive disadvantage.

In recent years, Tanzania has seen an increase in cases of financial fraud, including identity fraud, which involves the use of synthetic information to fabricate a person or entity for personal or financial gain. According to the Police Force, there was a decline in offenses related to illegal acquisition of property in 2020, but the number of cases still remains high.

Statistics

  • In January to December 2020, a total of 24,961 offenses were reported compared to 28,853 offenses in the same period in 2019.

Healthcare Fraud on the Rise

The healthcare sector is also not immune to fraud and irregular practices. In August 2021, the National Health Insurance Fund (NHIF) reported that it received TZS 600 billion/- worth of claims but paid only 477 billion/- after a thorough scrutiny. The amount paid was 77 per cent of the total claims.

Irregular Practices

  • There were 7,556 claims worth TZS 69.1 million that did not correspond with the card holder’s name.
  • Cases where members received full blood picture examination more than once on the same day were also reported.

Drug Trafficking Continues to Pose a Threat

Drug trafficking remains a significant threat to public health in Tanzania and continues to generate substantial proceeds for criminal organizations. The country’s location as an exit point to six landlocked countries, porous borders, and persistent corruption present challenges to drug interdiction efforts.

Notable Cases

  • In October 2017, two Iranian nationals were arrested on the Tanzanian territorial waters with a consignment of drugs. They were convicted of trafficking 111.02kg of heroin and 235.78 grams of cannabis resin and sentenced to 30 years in jail each.

Conclusion

The recent scandal involving Peertech Company highlights the need for stricter regulations and monitoring of financial transactions in Tanzania. The country must also intensify efforts to combat financial fraud, identity fraud, and drug trafficking to ensure public confidence in its institutions and protect the economy from illegal activities.