Life audit of a retired public servant

I retired from public service four years ago and am now doing my private businesses which I established since I was in public service. I am currently under investigation for the offence which the investigators call ‘possession of unexplained wealth’. The investigators asked me to give them statements of my bank accounts, list of properties I own and the dates of acquisition of those properties. During interrogation, investigators asked me the amount of tuition fees I was paying for my children who did their degree programs in Europe and America. They even asked me the amount of rent I was paying for the other women in my life and how I was able to maintain them. I want to know whether a person who has retired from public service four years ago can still legally be subjected to such criminal investigation for an offence of possession of unexplained wealth. And even if it is legally allowed, is it right for the investigator to dig into my private life by asking me the amount of house rent I was paying for these other women? Is this not against the right to privacy?
GP, Dar es Salaam

Section 26(5) of the Prevention and Combating of Corruption Act [Cap.329 R.E 2019] defines a public servant for the offence of possession of unexplained wealth to include a public servant who retired from public service within 5 years before the date of commencement of investigation. Since you retired from public service just 4 years ago, you are, unfortunately for you, still a public servant for the purpose of the offence of unexplained wealth created under section 27(1) of the Prevention and Combating of Corruption Act.

Section 26 and 27 of this Act gives the Prevention and Combating of Corruption Bureau (PCCB) power not only to investigate the wealth of public officials but also to audit their lifestyle. A public servant who retired from public service within 5 years must be able to account for his wealth in the sense that the properties he owns must be commensurate with his present and past lawful income. In assessing the properties of a public servant, the law allows inclusion of a property held by a third party in trust for or on behalf of a public servant or a property given to a third as a gift from such a public servant.

A public servant who maintains a standard of living above that which is commensurate with his past and present lawful income commits an offence under section 27(1)(a) of the Act. Since the PCCB has the power under the law to audit the lifestyle of a public servant and although you retired four ago, you are still a public servant for the purposes of life style audit, the PCCB have the power to audit your life style in order to know how you were able to maintain these other women at the same time amongst others. The burden of proof is on you to explain how you were able to maintain such a standard of living. In case of failure to account for the properties you possess that exceed your past and present lawful income, the Court shall forfeit those unexplained properties to the Government.

Clan savings and credit group registration

During this Christmas holiday we have planned to have a clan meeting at the village with a view to establishing a clan savings and credit group which will be receiving contributions from clan members and giving loans to the members at a low interest rate. One of the clan members who likes complicating things is saying that the group will be required to be registered with the Bank of Tanzania (BoT) for it to be legally able to receive contributions from its members and give loans to the members. Can you confirm if this assertion is correct? If the assertion is correct, can I know if there is an amount of minimum capital which the group is supposed to have at the time of registration?
MS, Moshi

The clan member is correct.

The Microfinance Act, 2018 and the Microfinance (Community Microfinance Groups) Regulations, 2019 recognises community microfinance groups like yours as Tier 4 microfinance service providers to be registered with the BoT for them to be able to legally receive contributions from their members and give out loans to members. Forming a clan savings and credit group with view to receiving money from the members and giving out loans on interest, however low the interest is, amounts to providing a microfinance service hence the group should be registered with the BoT.

Failure to register this with the BoT constitutes an offence under section 31(3) and 52(b) of the Act and regulation 31 of the Regulations attracting a fine of between 1 million and 10 million shillings. Moreover, members of the clan savings and credit group should not be below 10 and should not exceed 50. Powers of the clan savings and credit group will be limited to mobilising contributions from its members; granting loans to its members and mobilising funds for socio-economic welfare of its members. You will not be allowed to accept contributions from non-group members.

In seeking registration of the clan savings and credit group, you will need to submit among other things, two copies of the Constitution of the group, minutes of the clan meeting which formed the group, members’ resolution to form and register the group with the BoT; proposed organisational structure and names of the proposed leaders and list of members.

The law does not prescribe the minimum capital which the community microfinance group is required to have for it to qualify for registration nor the minimum balance to be maintained by a in your bank account.