Fortune teller promises to locate stolen money

I recently lost TZS 15M from my house and suspect that one of my employees stole it. A friend introduced me to a man who claims to possess supernatural powers and says that, for TZS 500,000, he can identify the thief and where the money is hidden. He has assured me that his powers have never failed. I am considering paying him because the police investigations are taking too long. My wife says that the man could actually be committing a crime simply by offering such services. Is she correct?

AK, Mwanza

Section 308 of the Penal Code addresses persons who, for gain or reward, undertake to tell fortunes or pretend, through knowledge or skill in an occult science, to discover where or how stolen or lost property may be found. Therefore, a person who demands payment while pretending to possess occult powers capable of locating your stolen money may commit an offence under this provision. The law does not require you to first prove that his supernatural predictions were unsuccessful.

However, the offence depends on the circumstances, including whether the person is acting for gain or reward and making the kind of representations contemplated by the provision. Ordinary investigative assistance is not the same thing as pretending to use occult powers. We would advise you to continue cooperating with the police rather than spending another TZS 500,000 on someone promising to locate the missing TZS 15M through supernatural means. Otherwise, you may soon need another fortune teller to help you locate the first one!

Dog terrorising neighbourhood

My neighbour owns 3 very aggressive dogs which he proudly refers to as his security officers. Every evening, he releases them into his compound, but his fence has several openings through which the dogs occasionally escape. Last week, one of them chased me while I was jogging, forcing me to climb a nearby tree. My neighbour found the incident hilarious and says that since the dogs have not bitten anyone, he has committed no offence. Must I wait until somebody is bitten before taking legal action?

KM, Arusha

Your neighbour may consider his dogs excellent security officers, but the law expects him to exercise proper control over them. Section 233(d) of the Penal Code provides that a person who, in a manner so rash or negligent as to endanger human life or be likely to cause harm to another person, fails to take precautions against probable danger from an animal in his possession, commits an offence. Interestingly, the provision does not necessarily require somebody to have already been bitten or injured. What matters is whether the owner’s negligent failure to take precautions creates the danger contemplated by the law.

Therefore, if your neighbour knows that his aggressive dogs can escape through the fence but fails to take reasonable precautions, his conduct may attract criminal liability. You may report the matter to the relevant authorities and seek appropriate preventive action.

Gold trading in Tanzania

My colleague and I intend to establish a business involving the purchase and sale of gold within Tanzania and its export to international markets. We intend to purchase gold directly from licensed small-scale miners and subsequently sell it to local dealers and foreign buyers. However, we are uncertain of the type of licence or permit we should have to undertake these activities. We also wish to understand the procedures for obtaining the relevant licences, the regulatory authorities involved, and the requirements for exporting gold.

RG, Arusha

Gold trading in Tanzania is principally governed by the Mining Act, Cap. 123 (the Act) and the Mining (Minerals and Mineral Concentrates Trading) Regulations, 2018. The relevant licences available for your contemplated business are broker’s and dealer’s licences. A broker’s licence authorises its holder to purchase gold at designated buying stations and sell it to licensed dealers but does not permit exportation. Conversely, a dealer’s licence authorises its holder to acquire, possess and trade in minerals, including gold, and permits exportation subject to obtaining the necessary export permit. A broker’s licence is reserved for eligible Tanzanian applicants, while a dealer’s licence may be issued to qualifying companies with foreign participation, subject to a minimum 25% Tanzanian shareholding. Since you intend to purchase gold for both domestic sale and export, a dealer’s licence is appropriate.

In terms of procedure for obtaining a dealer’s licence, you should first establish a place of business like any other entity, including obtaining a TIN certificate and securing the applicable business licence and suitable business premises. Thereafter, you should submit your application to the Mining Commission in a prescribed form, accompanied by the relevant application fee and supporting documentation. Such documentation generally includes the company’s incorporation documents, particulars of directors and shareholders, evidence of financial capacity, details of the proposed trading premises, arrangements for the secure custody of gold, and information demonstrating the applicant’s capacity to undertake mineral trading. Dealer’s licences are generally valid for a maximum of 12 months, subject to renewal in accordance with the Mining Act.

Because you intend to also export gold, export procedures, permits and regulatory obligations are worth addressing. Although a dealer’s licence authorises its holder to engage in gold trading, it does not dispense with the requirement to obtain a separate mineral export permit for each proposed export consignment. Before exporting gold, you must apply to the Mining Commission for an export permit, providing the relevant particulars of the consignment, including its quantity, value, destination and supporting transaction documentation. The gold must undergo the applicable official verification, weighing and valuation procedures to establish its gross value for purposes of assessing statutory payments. The exporter must provide evidence of payment of the applicable royalties and fees before obtaining the necessary export clearance. Further, you must complete the relevant customs formalities with TRA and ensure that the gold is exported in accordance with the permit conditions.

The mining legal framework further requires mineral rights holders and licensed dealers to set aside not less than 20% of gold produced or acquired for domestic processing, smelting, refining or trading. This gold must be sold within Tanzania to authorised refineries, smelters, jewellers or the Government through the Bank of Tanzania (BoT). In this regard, a licensed gold dealer intending to export gold must first ensure that at least 20% of the gold acquired is reserved for domestic sale.