Richmond trial comes for ruling next month

Long pending criminal trial on the scandalous Richmond Development Company and its Managing Director Name Gire has come to an end, with the judgment scheduled for delivery next month.

Gire was charged with fraud involving the production of 100MW electricity to Tanzania Electric Supply Company (TANESCO). The trial was conducted at the Kisutu Resident Magistrate’s Court in Dar es Salaam, but had some times to move to the High Court and Court of Appeal for determination of contentious issues on whether or not the accused had a case to answer.

The court file of the case was reportedly misplaced somewhere in the High Court, leading to delay in disposing the matter.

“Now that the case file is with me, the judgment will be delivered on April 21,” Principal Resident Magistrate Cyprian Mkeha told the parties to the trial last Friday. TANESCO hired Richmond Company to produce 100MW of electricity following a prolonged drought, which adversely affected power production in 2005. But the company allegedly failed to generate power as was agreed in the contract.

On July 28, 2011, Principal Resident Magistrate Waliarwande Lema of the Kisutu Resident Magistrate’s Court acquitted Naeem on five counts of forgery, uttering false documents and giving false information, citing insufficient evidence adduced by the prosecution witnesses.

The prosecution appealed to the High Court against the decision. In his ruling, Judge Lawrence Kaduri said, “Upon analysis, I am of the view that the evidence adduced by the prosecution witnesses was sufficient to require the respondent (Naeem) to be put to his defence.”

Judge Kaduri held that two counts of forgery and uttering false documents against Naeem were sufficiently proved to require him to give his defence, as the prosecution had made a ‘prima facie’ case leading irresistibly to his guilt if he would not refute the established evidence against him.

“I therefore order that the case proceed on the two counts from where it ended before another magistrate with competent jurisdiction,” the judge ruled.

The matter was then taken to the Court of Appeal for further adjudication. In the trial, the prosecution alleges that on March 13, 2006, in Dar es Salaam, with intent to defraud, Naeem forged a power of attorney, purportedly showing that Mohamed Gire, the Chairman of Richmond Development Company LLC of Texas, America, had signed it.

The power of attorney allegedly authorised Naeem of Dar es Salaam to carry on the business of the company in Tanzania.

The court heard that on March 20, 2006, the accused uttered the document at Umeme Park Ubungo along Morogoro Road. The controversy surrounding Richmond Company regarding its capacity to generate power attracted intervention by the National Assembly in 2008 and formed a Parliamentary Selected Committee, led by Dr Harrison Mwakyembe, now Minister for Justice and Constitutional Affairs.

Such Committee conducted an inquiry and upon releasing its report, called for resignation of all top government officials implicated in the controversial contract with Richmond. Former Prime Minister Edward Lowassa, who was adversely mentioned in the report, decided to resign.

He (Lowassa) was followed by Mr Nazir Karamagi and Dr Ibrahim Msabaha, the then Minister of Energy and Minerals and Minister for East African Cooperation, respectively, who were also mentioned in the report.

The members of the committee also said the government should on its own take stern disciplinary measures, including dismissing its officials who caused the country to incur huge losses by entering into the controversial contract.

Dr Mwakyembe was quoted as saying that his team had proved that the Richmond contract and its inheritor-Dowans-overlooked the critical law provisions, reeked of corruption and showed undue influence peddling by senior government officials.

The team said due to the contract, the state power utility, the Tanzania Electricity Supply Company (Tanesco), would be paying over 152m/- in capacity charges to Dowans whose power is not needed. It added that the huge cost was to blame for the shooting up of power tariffs.

Furthermore, the team recommended that the government immediately review the contract it entered into with Richmond and its inheritor on account of lies that were involved and the legality of Richmond conducting such business in the country.