The Financial Times: Reginald Mengi & principles of "authority, integrity and accuracy" .

Corruption is never about individuals per se but more about those that give it impunity and why.

On its Internet site, The Financial Times (FT) describes itself as "one of the world’s leading news organisations, recognised globally for its authority, integrity and accuracy" which provides news, comment, data and analysis, to a growing audience of internationally minded professionals.

Yesterday it published an interview (below) with Reginald Mengi of Tanzania which the paper describes as a  "media mogul" and "one of Tanzania's richest businesspeople" hoping for an end to corruption. The FT portray Mr Mengi as a man that has suffered at the hands of corruption reporting him as stating  he has lost out on at least two big deals due to corruption.

What the FT does not report was that Reginald Mengi was, in 2012 in the London High Court found complicit in the corruption of his brother Benjamin that led to the destruction and theft of legitimate UK investment in Tanzania. The following press release from Media Lawyers Carter Ruck sums up the corruption as follows:-

Press Release 
Date:  30 November 2012  
Sarah Hermitage Libel Defence Upheld 
Silverdale Farm Blog Justified 

At the High Court in London today, Mr Justice Bean delivered Judgment in favour of Sarah Hermitage, who had been sued for libel by the wealthy Tanzanian businessman, Reginald Mengi, the Executive Chairman of IPP Ltd, a company which holds major newspaper and broadcasting interests in Tanzania.

Reginald Mengi sued in respect of five postings on Sarah Hermitage’s Silverdale Farm blog and two emails she had sent, which Mr Mengi claimed to be false and defamatory of him. 

 
During the trial, the Court heard unchallenged evidence from Sarah Hermitage and her husband, Stewart Middleton, as to how they were by threats, intimidation and corruption driven from Tanzania and forced to abandon the investment they had made in their farm, Silverdale, of which Reginald Mengi’s younger brother, Benjamin, then took possession.  The Court was told that a major factor in the ordeal they suffered was the hostile and defamatory coverage their case received from the IPP-owned English language Guardian and the Swahili Nipashe newspapers.  Reginald Mengi, in the course of his evidence, repeatedly stated that he “was not responsible, not accountable and not answerable” for the editorial content of IPP publications.

In giving Judgment, Mr Justice Bean ruled:

“I find that the campaign in the Guardian and Nipashe facilitated Benjamin’s corruption of local officials and intimidation of the Middletons and thus helped Benjamin to destroy their investments and grab their properties; and that Mr [Reginald] Mengi, since he either encouraged or knowingly permitted the campaign, was in that sense complicit in Benjamin’s corruption and intimidation.  The allegation is thus substantially true, and justified at common law.”

After handing down judgment Mr Justice Bean ordered that Reginald Mengi should pay the defence costs at the higher “indemnity” rate. In reaching this decision, the factors cited by the Judge included that Counsel for Sarah Hermitage had “rightly described the litigation as “oppressive”, that “enormous costs had been thrown at the case from the beginning, indeed before the issue of proceedings” and that the evidence of the Claimant and his witnesses had in a number of respects been “misleading and untrue.”

Mr Mengi was refused leave to appeal this Judgement by Buxton LJ on the basis that he and his witnesses "mislead" the court. That means lied!

Mr Justice Bean ordered that Reginald Mengi should pay £1.2million on account of Sarah Hermitage’s legal costs, which will be subject to detailed assessment by the court in due course.

Enquiries to Andrew Stephenson, Carter-Ruck, Tel: 020 7353 5005

Reginald Mengi at the London High Court in 2012 after losing a case thought to have cost him in excess of £3 million

The FT is a leading authority on the safety or otherwise of investment destinations to the business world. Reginald Mengi is chairman of the Tanzanian Private Sector Foundation in Tanzania which facilitates and advises on foreign direct investment. It is left to the reader to decide why, the FT in pursuing principles of "authority, integrity and accuracy" should 1) wish to interview Mr Mengi in the first place and 2) why they should omit the above relevant information, clearly in the public interest from the article.

Corruption is never about individuals per se but more about those that give it impunity and why.

Interview with Tanzanian media mogul Reginald Mengi

One of Tanzania’s richest businesspeople sees hope for end to graft

The personal website of Reginald Mengi — the tycoon who, over 30 years, has accumulated interests in print and broadcast media, manufacturing, soft drinks, mining and technology — suggests Tanzania is and always has been an open economy where it is easy to do business.

But two hours with the softly spoken businessman, who is one of the country’s richest people, reveals a very different picture. Despite Tanzania’s economy growing at more than 7 per cent a year, Mr Mengi says widespread graft has left it resembling a piece of fabric that is riddled by holes. “You touch here there’s a hole, you touch here there’s a hole,” he says prodding the tablecloth over lunch in a Dar es Salaam hotel. “You touch this ministry there’s a hole, you touch this functionary … everywhere is full of holes.” Mr Mengi says he has lost out on at least two big deals due to corruption.

It is not just corruption that has hampered Tanzania’s economic growth; it was ruled for decades by socialists who regularly stifled entrepreneurialism, Mr Mengi says. The businessman recounts how in the 1980s there were widespread shortages due to the government promoting policies that favoured domestic produce over imports. “People would queue for anything and things were very very tough,” he says. It was this scarcity that prompted Mr Mengi — then working at UK accountancy Coopers & Lybrand, now PwC — to go into business in the 1980s, assembling ballpoint pens. “At that time it was very difficult to import ready-made goods. Fortunately the system allowed the importation of components or knocked-down goods that you could assemble locally.”

Mr Mengi eventually acquired the financing and the components and navigated the bureaucracy to launch his business. He describes how he made money by producing shoe polish out of charcoal during the shortages. But he says that decades of socialism have had a significant impact on society. “People don’t see opportunities in things,” he says. “We have so much in Tanzania people need help to see the opportunities which are there.” The economy did open up in the late 1990s under President Benjamin Mkapa. But Mr Mengi says the policies ushered in an era of crony capitalism

By last year the situation “had reached tipping point”, according to Mr Mengi, and he is relieved that the new president, John Magufuli, has prioritised fighting corruption. Mr Mengi acknowledges the president has yet to articulate his economic vision, but he understands why this has taken time. “If someone has a heart attack what do you do? Poop poop poop, you try and revive them. You don’t think, ‘Shall I give them a Panadol?’” he says while miming using a defibrillator. Despite painting a gloomy picture, Mr Mengi says businesspeople should not be too downcast about the current “bad times”. “People with guts will make a lot of money in bad times, a lot of money,” he insists. “Beauty is in the eye of the beholder. You can say this is good times or bad times depending on the beholder.”

British government and its contempt for High Court Ruling, Mengi v Hermitage 2012

 

In November 2014, The Foreign and Commonwealth Office organised a trip to Tanzania in order to promote Tanzania to British businessmen as a country for foreign direct investment.

The responsibility of the UKTI in respect of British business in Tanzania (as stated on it’s Internet site https://www.gov.uk/government/world/organisations/uk-trade-investment-tanzania) is to help companies in Britain increase their competitiveness through overseas trade in Tanzania... offering professional, authoritative & personalised assistance.

The British High Commission’s Internet site in Tanzania states the following:-

UKTI's team in the country can provide market information, contacts, practical assistance, i.e. arranging appointments, advice, mentoring and on-going help before they travel to Tanzania and while they are in the market.

In November, David Billingsby, UKTI International Trade Adviser lead a delegation of businessmen to Tanzania stating,  “having worked in Tanzania before, I know the excellence of the reception these British companies will receive. I am certain that the mission will be successful and the delegates will be saying Asante sana!”

David Bilingsby (right) Head of the UK Trade & Investment (UKTI) London/South East Trade Mission to Tanzania fields questions from journalists during a press conference

He led 14 UK companies cutting across various sectors e.g. Education and Training, Security, Consultancy, Healthcare amongst others are hoping to penetrate new trade opportunities within Tanzania.

Whilst in Tanzania, in a move to encouraged British business in Tanzania (this was the purpose of the delegation) the British government arranged for the British business delegates to meet with Reginald Mengi. Reginald Mengi is Chairman of the Private Sector Foundation in Tanzania and is owner of the powerful IPP Media network.

More importantly, Reginald Mengi is a man who was found by the UK High court to be complicit in corruption that destroyed British investment in Tanzania. The seriousness of the corruption is stated in a press release from lawyers carter Ruck who defended British investor in Tanzania Sarah Hermitage when Mengi sued her in the London High Court in 2012. The judge found that Reginald Mengi and his witnesses and lied to and misled the court with LJ Bean stating:-

“I find that the campaign in the Guardian and Nipashe facilitated Benjamin’s corruption of local officials and intimidation of the Middletons and thus helped Benjamin to destroy their investments and grab their properties; and that Mr [Reginald] Mengi, since he either encouraged or knowingly permitted the campaign, was in that sense complicit in Benjamin’s corruption and intimidation”.

http://www.carter-ruck.com/Documents/Hermitage_Press_Release-301112.pdf

The ceaseless, savage and vile abuse the British investors suffered at the hands of the Mengi family can be read in the judgment at the following link.

http://www.bailii.org/ew/cases/EWHC/QB/2012/3445.html

The British government and David Bilingsby show utter contempt to the British investors, to the rule of law and civil society and to Lord Justice Bean whose judgment their conduct belies.

It is also suggested here, that HMG and the FCO has been negligent in it’s duty to inform and protect British investors in Tanzania.

In the Independent newspaper on 28th November Mengi stated that he was “gratified” to meet the UKTI mission and that LJ Bean’s judgement was “faulty”.

That,  says a great deal about the British government and its commitment to protect British investors overseas.

British couple attack trade mission to Tanzania after death threats

British couple attack trade mission to Tanzania after death threats

Sarah Hermitage and Stewart Middleton say Britain is dishonestly promoting East African country as a safe place to invest

The Government's drive to promote trade with Tanzania has been attacked after a British couple claimed that a campaign of harassment drove them out of the country. They recently made a police complaint over a death threat daubed at their house in Kent, responsibility for which is unclear.

Sarah Hermitage and her husband, Stewart Middleton, have attacked a recent UK Trade and Investment (UKTI) mission to the country, after they were forced to abandon their farm in Kilimanjaro. They are now seeking to take the Tanzanian government to court over what they say was its failure to protect them in a corrupt business environment, including the actions of a local businessman, Benjamin Mengi, and his media magnate brother, Reginald Mengi.

The couple purchased the lease of Silverdale Farm from Benjamin Mengi, a Tanzanian citizen, in 2004 to establish a sustainable farming project employing 150 people. However, Mr Mengi disputed the deal the following year, at which point the couple claim he began a campaign of threats and intimidation, including death threats, which damaged their property.
The couple also believe that a machete attack which left one of their staff permanently crippled was also connected to the dispute.

Last week, the couple, who fled Tanzania in 2008 and relocated to Kent, reacted furiously after it emerged that UKTI led a trade delegation of 14 British firms to the East African country last week. Ms Hermitage said: "It is dishonest of the Government to promote Tanzania as a safe place for British investment … We suffered four years of savage brutality and abuse of law in Tanzania, unimaginable to most in my country, and it continues. It was instigated by powerful individuals, but facilitated by the Tanzanian government."




This April, three days after coverage of the case in a national newspaper, the couple's home was broken into and a death threat daubed on furniture in their bedroom. The threat said, "Kill Sarah", and included five cemetery cross symbols. According to Ms Hermitage, this "clear death threat" came after the couple made clear their intention to pursue a multimillion- pound case against Tanzania in the International Centre for Settlement of Investment Disputes (ICSID) at the World Bank; the following month, Ms Hermitage's lawyer wrote to the chief constable of Kent Police advising him of the "on-going dispute with the government of Tanzania".

He detailed how the couple had been "subjected to a sustained campaign of violence and harassment" in Tanzania, including threats that they would be shot or "cut to pieces" and sent home "in a coffin".
He continued that Ms Hermitage and Mr Middleton had "sought to bring attention to their treatment" and, as a result, had become known as anti-corruption advocates in the media. However, both Reginald and Benjamin Mengi have strongly denied any knowledge of the Kent break-in.
Ms Hermitage was also concerned that a man she believed to be a Tanzania Intelligence and Security Services (TISS) agent attended an anti-corruption lecture she gave in London a month after the break-in.

Steven Finizio, of the WilmerHale legal firm which represents the couple, said the planned ICSID case is an attempt to bring the Tanzanian government to account for failing to protect the British investors, including from what he described as "real threats of death" that forced them to flee the country.

He said: "The warning I would give smaller firms seeking to operate in Tanzania is that the recourses to law may not be there for you in the same way as large-scale investors. The Government may be there to help you if there is trouble on the ground, but, after that, it may place a priority on other concerns, including its relationship with the Tanzanian government."

Last month's UKTI mission follows a Downing Street meeting between David Cameron and the President of Tanzania, Jakaya Kikwete, in April, which came after the two countries announced a "high-level prosperity partnership".

Ms Hermitage described Britain's charm offensive in East Africa as "dishonest", saying her case "illustrates a climate of governance in Tanzania that discourages private investment and works against the promotion of the well-being of Tanzania's own citizens". She added: "The Government's failure to hold the Tanzanians to account for this is indefensible."

The UK trade mission met with a Tanzanian trade body chaired by Reginald Mengi, who is the 34th richest man in Africa, according to Forbes. In 2012, he sued Sarah Hermitage in Britain for libel over comments made on her blog about the farm case. In a damning High Court ruling in Ms Hermitage's favour, Mr Justice Bean said a campaign by Mr Mengi's newspapers "facilitated Benjamin's corruption of local officials and intimidation of the Middletons and thus helped Benjamin to destroy their investments and grab their properties".

He added that, in his newspapers' defamatory campaign, Reginald was "complicit in Benjamin's corruption and intimidation".

Ms Hermitage and Mr Middleton have also received support from the former British high commissioner in neighbouring Kenya, Sir Edward Clay, who clashed with Andrew Mitchell, the then International Development Secretary, over the case. Sir Edward said the Government had "been unwilling to listen" to Ms Hermitage's complaints. He said: "I think it is fair to say that the present government's emphasis on the prosperity agenda in their foreign policy has trumped other considerations, except on the very largest issues."

Reginald Mengi said he was "gratified" to meet the UKTI mission. He added that Ms Hermitage's proposed court case is a matter for the Tanzanian government and said he viewed the 2012 libel judgment against him as "faulty". He categorically denied knowing about any alleged death threats against Ms Hermitage or that he had been contacted by police or anyone else about the allegations.

His brother Benjamin said: "None of the allegations, that I intimidated or filed vexatious litigation, is true. I was totally within my rights to file cases in civil courts and report what I believed to be criminal acts … to the police and I did not use corruption or any other form of influence at any stage of seeking to enforce my rights. It is not true that I arranged for the Middletons to be harmed and I am not aware of any police record of such an allegation being made … I am not aware and have nothing to do with any house-breaking or death threats against Sarah Hermitage."

Amos Msanjila, a spokesperson for the Tanzania High Commission in London, confirmed that a consular official attended a lecture event where Ms Hermitage spoke, but denied it was a member of TISS.

A UKTI spokesperson said the Government was working to make sure British companies understood the "various challenges" facing investors in Tanzania.

Tanzania: The Politics of Hypocrisy

 

With traditional energy markets embroiled in conflict and subsequent unreliability, world powers are turning to Africa to secure the natural resources required to fuel their economies. However, this new scramble for Africa brings further conflict, the conflict between civil society and profit.

In August, President Obama hosted the United States-Africa Leaders Summit’ in Washington DC: A summit, to provide an opportunity for the Obama administration to open a new chapter in U.S-Africa relations. Journalist Martin LeFevre states the Obama Administration had two aims. To change the narrative about Africa and open the Continent to American business providing an alternative to China’s extractive, no-strings-attached model. “We don’t look to Africa simply for its natural resources. We recognize Africa for its greatest resource which is its people and its talents and its potential,” President Obama intoned unconvincingly.

The problem however, as Helen Epstein points out in her piece entitled “Africa’s Slide Toward Disaster,” (http://www.nytimes.com/2014/08/02/opinion/africas-slide-toward-disaster.html?_r=0) is that whilst the summit sought to highlight Africa’s development successes and promote trade and investment on a continent rich in oil and natural resources, Justice and the rule of law weren’t on the agenda.  A view forcefully reiterated by Hassan Shire Executive Director of the East and Horn of Africa Human Rights Defenders Project who points out that some of the attending heads of state acquired or entrenched power by unconscionable means. Many have brutally repressed the rights of their own citizens and systematically targeted independent civil society voices that seeking to hold them to account.  It is these voice Epstein states, so vital to Africa’s development, that were largely excluded from the substantive discussions about America’s role in Africa’s future.

Whilst there is no shortage of corporates, donors and world leaders engaging in politics of the sieve with African leaders thereby nurturing a culture of impunity, the day will come when they will be faced with a choice between nepotistic interest and principles of civil society. This will be a serious choice.  As Epstein states, lavishing billions of dollars in military and development aid on African states while failing to promote justice, democracy and the rule of law, American policies have fostered a culture of abuse and rebellion which must change before the continent is so steeped in blood that there’s no way back.

With the rise of terror organisation such as ISIS and al shabaab in times when the United States and Western governments vehemently trumpet their commitment to the protection of human rights in countries where such organizations operate, how is this rhetoric consistent with their eagerness to do business with African regimes that abuse human rights on just about every level? How much will be too much if at all, for companies such as BG Group Tanzania to pay for gas or for Ophir Energy to pay for oil. More importantly when will governments such as the United Kingdom place their rhetorical concern for human rights above British business interests.

In a speech to the British Chamber of Commerce in March of this year, former British Foreign Secretary William Hague told business leaders that extra effort was required to maintain British prosperity, standards of living, and sources of jobs for the next generation. We are tackling our problems at home and using foreign policy to seek out new economic opportunity for our country he said. But at what cost?

In April Hague met President Kikwete in London commending him on Tanzania’s growing partnership with the UK on human rights and good governance. Yet due to the high levels of corruption in Tanzania, the administration of justice is not fit for purpose. The very institutions mandated to protect the rights of the people are, through a culture of corruption and impunity, used to deny them.  It is as if Justice is bought and sold on the open market. Those who don’t have access to power do not have access to justice. Importantly, Tanzania is not recorded as a country for concern in respect of human rights by the British government. This presents a clear dichotomy between the UK government's praise of the Kikwete regime and the reality on the ground in Tanzania.

In November 2012 UK’s Daily Telegraph newspaper published an article written by its then Assistant City Editor Jonathan Russell claiming it had seen a letter sent to DFID by shareholders in UK-listed companies operating in Tanzania asking for part of its £151m aid budget to be used to tackle the growing corruption in the country in order to safeguard UK investments in Tanzania. The letter expressed serious concern for  the “….on-going trend towards deterioration of title, protection of companies basic rights, challenges to agreements made under Tanzania mining code with the Government and seemingly arbitrary demands for “windfall” payments.”  If true, this is a grave indictment indeed, not only on DFIDS development policy but on the Tanzanian government’s willingness and/or capacity to promote a conducive investor environment through the rule of law.

Simply, the UK government does all but lick the boots of Kikwete’s governance yet demonstrates no serious policy of holding said governance to account for its appalling governance and human rights record. Why?

Well a clue is in the remainder of Hague’s speech. He commended the growing partnership between the UK and Tanzania on trade and investment, defence and security and governance noting that it provided significant opportunities for British businesses.  He cited two projects in particular. The signing of a memorandum of understanding between BG Group, Ophir Energy and the Tanzanian Petroleum Development Corporation, on the potential development of a multi-billion pound onshore liquefied natural gas plant; and an agreement between UK company Aldwych International and the Tanzanian authorities on development of a £175 million wind farm.

Whilst the British government continues to lavish praise on Kikwete’s governance ignoring rising corruption and Tanzania’s appalling human rights record, it is nurturing a culture of impunity which will at some point have disastrous consequences upon civil society. As Epstein so aptly states, “the best guarantee of peace and prosperity is justice and indifference to it, for whatever reason creates the very disasters the West wishes to avoid. The West must use all means, including aid cuts, trade sanctions, travel bans and forceful public statements, to punish governments that abuse their own people — before it’s too late”. Her comments could not be more apt in the light of the sweep of organizations such as ISIS and Al Shabaab across the Middle East and Africa.

DFID states and clearly has a duty to show that it is achieving value for money in everything it does and promises the British tax payer results, transparency, accountability and value for money for every pound spent on development. However, research based evidence states that DFID is not meeting its purpose, is failing the British tax payer and the citizens of Tanzania in a manner that begs the question, what is the present quid pro quo in respect of British Aid to Tanzania as it continues to pour billions of dollars of tax payer’s money into a corrupt regime with an appalling human rights record.

Director of the East and Horn of Africa Human Rights Defenders America Hassan Shire, reminds us of the obvious, i.e. human rights, democracy, free and fair elections, and the rights to freedoms of expression, association, and assembly are not western constructs. They are universal human rights, belonging to Africans just as much as they belong to the West. Failing to hold corrupt governments to account in a manner demonstrated by British foreign policy in Tanzania i.e. by politics of hypocrisy, denies those rights and erodes civil society and the rule of law.

This is indefensible both in respect of the British Tax payer and the people of Tanzania.

 

Tullow Oil Uganda v Silverdale Farm,Tanzania.

In 2012 Tullow Oil became engaged in a commercial dispute in Uganda regarding capital gains tax. Following the 2012 completion of the farm-down of 66 per cent of its’ exploration interests it was issued with a capital gains tax assessment of $472m. Tullow disputed the assessment.

There is no intention here to comment on the details of the dispute save to say there was/is one, it involving considerable sums of money and direct lobbying to President Museveni on the company’s behalf by the British government.

In  2004 British investors Sarah Hermitage and Stewart Middleton invested in the agricultural sector in Tanzania purchasing the lease to Silverdale and Mbono Farms just outside the town of Moshi in the Kilimanjaro area of Tanzania. They purchased the lease from Benjamin Mengi brother to IPP Media owner Reginald Mengi.

Stewart Middleton was born and raised in Zambia and he is an agronomist of note and an expert in small holder farming. His plans for the farms were to obtain EurepGAP certification as a matter of priority. EurepGAP certification improves market access to the European Union. Obtaining such certification is a rigorous and complex process, and is crucial for exporting internationally, particularly to the European Union. Achieving certification involves meeting rigid requirements regarding food safety (i.e., traceability of food source, limited use of fertilizers, and product handling), environmental standards (i.e., waste management, pollution management, and site management), and social responsibility (i.e., appropriate facilities for employees, health and safety standards, and grievance procedures). No farm in Tanzania had obtained EurepGAP certification at the time.

Middleton’s investments in infrastructure and his farm management skills immediately began to transform unproductive land into a revenue-generating, productive commercial farm. Within one year Silverdale was employing approximately 150 local employees and was realizing significant net monthly revenues from crop exports alone. Silverdale and Mbono Farms under Middleton’s  management were indeed the first farms in Tanzania to receive EurepGAP accreditation. Whilst the investors did not have the economic clout of Tullow Oil, they provided sustainable development in a manner encouraged and promoted by British foreign policy.

Shortly after purchasing the lease and making improvements to the farms Benjamin Mengi began to make demands for more money stating he had not been paid in full for the lease. This despite the fact that he had signed a receipt for full payment in 2004. Mengi threatened Middleton with violence and the revocation of his residence permit if such extra sums were not paid to him and told him he would drive him from Tanzania by any means possible if necessary, cut to pieces in a coffin. The police here Mengi stated “are in my hands”.

Middleton refused to abandon his investment and Mengi began a violent and destructive campaign to force Mr. Middleton from the farms and Tanzania. Mengi made it clear he intended to take the farms back, drive Middleton from the country and keep the money he had been paid for the assignment. His campaign of violence and harassment was facilitated by the government of Tanzania.

The British couple and their Tanzanian staff faced a four year campaign  of escalating violence and harassment, brutal attacks and death threats together with constant unlawful arrest and imprisonment of Middleton and his key Tanzanian staff.  During the same period the farms were systematically vandalised and crops damaged, destroyed and stolen to a point where the farming unit and the couple’s investment were completely destroyed.

Having faced almost five years of violet abuse of law, the couple fled Tanzania in 2009. As they left through the back door for fear of further arrest and imprisonment they were on the telephone to the the deputy British High Commission in Dar es Salaam who stated “so he [Benjamin Mengi] has finally done it has he”.

Reginald Mengi is one of the most powerful and influential men in Tanzania.  Both he and  his brother Benjamin have strong influence in the Kilimanjaro region surrounding their hometown of Machame, including Moshi town. Their influence is national as reflected by the funeral for Benjamin Mengi’s wife, Millie Mengi, in 2010, which was attended by national and regional political figures, including the President of Tanzania, President Jakaya Kikwete.

In 2012 Reginald Mengi sued Sarah Hermitage in the London High Court for libel in a case described by the judge as oppressive and thought to have cost him in excess of £3 mil. He sued in respect of five postings on this blog (set up to highlight what had happened in Tanzania) and two emails she had sent, which Mr Mengi claimed to be false and defamatory of him.

During the trial the Court heard unchallenged evidence from Hermitage and her husband as to how they were by threats, intimidation and corruption driven from Tanzania and forced to abandon the investment they had made in Silverdale Farm, of which Benjamin Mengi then took possession.

The Court was told that a major factor in the ordeal they suffered was the hostile and defamatory coverage their case received from  IPP-owned English language Guardian and the Swahili Nipashe newspapers. Reginald Mengi, in the course of his evidence, repeatedly stated that he “was not responsible, not accountable and
not answerable” for the editorial content of IPP publications.

In giving Judgment, Mr Justice Bean ruled:

“I find that the campaign in the Guardian and Nipashe facilitated Benjamin’s corruption of local officials and intimidation of the Middletons and thus helped Benjamin to destroy their investments and grab their properties; and that Mr [Reginald] Mengi, since he either encouraged or knowingly permitted the campaign, was in that sense complicit in Benjamin’s corruption and intimidation.

After handing down judgment Mr Justice Bean ordered that Reginald Mengi should pay the defence costs at the  Higher “indemnity” rate. In reaching this decision, the factors cited by the Judge included that Counsel for Sarah Hermitage had “rightly described the litigation as “oppressive”, that “enormous costs had been thrown at the case from the beginning, indeed before the issue
of proceedings” and that the evidence of the Claimant and his witnesses had in a number of respects been “misleading and untrue.”

Hermitage referred to Mengi’s defamatory media campaign as journalistic terrorism. The judge did not agree stating her response had been proportionate, justified and without malice.

Shockingly, as Reginald Mengi sued Hermitage in the London High Court DFID (i.e. the British tax payer) had donated UK aid to IPP’s the Guardian newspaper to improve investigative journalism.

Disregarding the personalities involved in the Silverdale Farm case (which the issues transcend), the case illuminates a fragile and corrupt business environment in Tanzania manipulated by powerful individuals close to the government and President Kikwete which brought about the total destruction of bona fide British investment in a country the British government is promoting as a destination for  investment and with whom it has signed multi million pound energy contracts.

The British government will not lobby President Kikwete on behalf of the investors stating the issue is a commercial dispute and HMG cannot intervene in commercial disputes. Further, it represents the couple have legal proceedings pending in Tanzania which again prevents it from intervening.

Conversely, Her Majesty’s Government takes a different view on the Tullow Oil case: Also a dispute and one where the company did initiate legal proceedings with the government of Uganda. Despite this and mid legal proceedings, the British government intervened at ministerial level and lobbied President Museveni on Tullow’s behalf in order to resolve their dispute.

In fact HMG could not wait to involve themselves in Tullow’s dispute despite their legal proceedings and Whitehall’s diplomatic army  swooped to Tullow’s aid with the following  weaponry:-

“there is a major UK commercial interest at stake here, which is not limited to Tullow. Their success has also been bringing other major UK firms, to the market”.

 “Tullow Oil have hit serious problems which threaten their investment in Uganda.  Recommendation that we intervene urgently at Ministerial level with President”

Of course the British investor’s issues in Tanzania cannot be described appropriately as a dispute. They are issues of abuse of law, denial of access to law, the abuse of human rights, criminality and the failure of state institutions to protect them as foreign investors. Further, the British couple have never issued any legal proceedings against anyone either inside or outside of Tanzania.

That said both of the above inaccuracies continue to be used and trumpeted as reasons for non-intervention in the Silverdale affair by HMG throughout the corridors of Whitehall power. Letters containing the same inaccurate statements (with text containing the same spelling mistakes) rebound from all written requests to the British government from those seeking to support the couple’s attempts to obtain justice.

There is no doubt that the legally inaccurate position articulated by the British government in the face of clear evidence of criminality and abuse of law in the Silverdale case has caused the couple great harm and supports a culture of corruption and impunity in Tanzania.

In the face of the British government’s continuous rhetorical commitment to human rights, good governance ad the protection of its overseas nationals, its refusal to come to the aid of the British couple in Tanzania is objectively indefensible and in the face of the overwhelming assistance it gave to Tullow Oil in Uganda, it is dishonest.

At a meeting at the Foreign and Commonwealth Office in 2013, Sarah Hermitage asked her government to support her in two respects. Firstly, to represent the facts of the Silverdale case in accordance with the law and secondly, to open up senior lines of negotiation with the Tanzanian government in respect of compensation for the theft of their investment in Tanzania to avoid the need to resort to international arbitration.

The British government refused the first request stating  “we cannot interfere with investor disputes” and the second on the grounds that the British High Commissioner in Dar es Salaam Dianna Melrose, did not have the experience to enter into said negotiations on behalf of the couple. In fact HMG placed so little importance on this issue that she was sent to Tanzania un-briefed on the case.

Such indifference is in vivid contrast to the assistance given by the British government in to Tullow Oil in their dispute in Uganda.The CEO of Tullow Oil is Aidan Heavey, a man who has donated more than £50,000 to the Conservative Party. Neither of the British Investors is a Conservative Party donor.

(http://www.thesundaytimes.co.uk/sto/news/Politics/article1230960.ece)

Unlike the Tullow Oil case, the Whitehall corridors of power did not swoop to the battle lines to assist the British investors in Tanzania and five tortuous  years have passed for them without assistance from their government.

Information received under the Freedom of Information Act shows that until Mark Simmonds became Minister of Africa in 2012, not one British minister had raised the Silverdale case  with the Tanzanian government and that it is now raised simply to suggest it harms Tanzania’s reputation as a safe country for foreign investors.

The Tanzanian government continues to ignore the British government and the later, in turn, does nothing more. Instead, it has sat back and watched the couple lose their life savings, dragged  through a London High Court libel case and defamed and abused by senior Tanzanian officials and personalities. 

Information received under the Freedom of Information Act on the overwhelming assistance the British government gave Tullow Oil in the resolution of their dispute in Uganda is contained below this article but the following gives a glimpse of how HMG gave overwhelming assistance to the company and directly lobbied President  Museveni in order to resolve their “dispute” :-

The British government’s stand in respect of the Tullow Oil’s dispute was as follows: 1.    Tax disputes could potentially undermine or at least delay  Tullow's interests in Uganda

The criminality in the Silverdale issue destroyed British investment in Tanzania and undermined the British government’s policy and Kikwete's assertions that Tanzania is a safe destination for British FDI. 2.    Henry Bellingham. “It is worth drawing on the important role British business (e.g. Tullow Oil) is currently playing in developing Uganda’s oil and gas sector.

Bellingham dismissed the role the British investors through their company Silverdale TZ played in the reduction of poverty and promotion of sustainable development in Tanzania. 3.    HMG position on the Tullow Oil dispute “to assure Tullow that we want to help them to continue their success in Uganda” HMG position on Silverdale Farm dispute “we cannot involve ourselves with commercial disputes” 4.    Henry Bellingham met and personally lobbied Museveni on Tullow Oil’s behalf. “Very positive visit. Warm welcome too from British business, and useful work done in support of Tullow Oil's investment in Uganda”. Also met with Tullow Oil and appraised them of the efforts MG was making to resolve their “dispute” Not one government minister has ever spoken to either British investor in the Silverdale case in the last five years and HMG refuses to even represent their case in accordance with the laws of Tanzania stating “we cannot involve ourselves in "disputes”. 5.    Henry Bellingham, “My meeting with President Museveni allowed me to raise a specific trade issue, again regarding Tullow Oil. Though better than in DRC, the situation is stuck due to the question of taxes paid by [name withheld], from whom Tullow have bought the rights to the blocks on Lake Albert.” The British investors have never been told of any meeting that has taken place with any member off the British government and president Kikwete.   ____________________________________________________________ Information obtained under the Freedom of Information Act in the UK in respect of the British government’s intervention in a dispute between Tullow and Heritage Oil in Uganda. Read:- Tax disputes could potentially undermine or at least delay Tullow's interests in Uganda. From: eGrams AD(EAGLS) Sent: 02 July 2010 10:25 To: [names withheld] Subject: FW: UGANDA: OIL ISSUES ------------------------------------------- An update on developments in Uganda’s nascent oil sector. On the commercial front progress has temporarily stalled because of a tax dispute between the government and [name withheld] over the sale of [name withheld] Ugandan assets to Tullow Oil. [information withheld] From KAMPALA Despatched 02/07/2010 08:17:00 GMT Detail 1. [information withheld] Business 2. [name withheld] agreed in December 2009 to sell its stake in Uganda for [information withheld] to [name withheld]. In January 2010 Tullow (50% co-owner of [name withheld]’s two blocks) exercised pre-emption rights to buy [name withheld]’s stake on terms that matched the [name withheld] offer [information withheld]Tullow announced in February a proposed “farm-out” partnership with the [name withheld] [name withheld], which would give all three partners an equal, one-third share in the blocks. 3. [information withheld] Impasse? 4. The government claims that [name withheld] should pay around [information withheld] in capital gains tax on its deal with Tullow. [name withheld] argues that CGT is not applicable to this transaction, based on their interpretation of Uganda’s Income Tax Act and historical precedent (no capital gains tax was paid when Tullow acquired Hardman Oil’s interests in 2007, which were then much less valuable). [information withheld] Regulation 5. [information withheld] Shearman {[name withheld]} [information withheld] RELEVANT EXTRACTS FROM MR BELLINGHAM’S VISIT BRIEF, July 2010 Steering Brief [It is worth drawing on the important role British business (e.g. Tullow Oil) is currently playing in developing Uganda’s oil and gas sector, highlighting in particular the industry specific experience and expertise we have to offer across the spectrum (upstream, downstream and ancillary support services). [information withheld] Meeting with President Yoweri Museveni OUR OBJECTIVES  [information withheld] [information withheld] POINTS TO MAKE [information withheld]  [information withheld]  Britain has world class companies with expertise in the oil and gas sector, including supporting engineering and professional services. Tullow oil a good example [placeholder for specific ask following your meeting with Tullow that will take place earlier in the day]  [information withheld] [information withheld] Meeting at Tullow Oil HQ, Kampala Our Objective  To assure Tullow that we want to help them to continue their success in Uganda. Points To Make  We're delighted with Tullow's impressive success in Uganda. [information withheld] Oil Oil Companies 1. Uganda’s oil is located in the Albertine Rift Valley (North East DRC/West Uganda/South Sudan border areas). [name withheld] agreed in December 2009 to sell its stake in Uganda for [information withheld] to [[name withheld]] of Italy, but Tullow (50% co-owner of [[name withheld]]’s two blocks) exercised pre-emption rights in January to buy out [[name withheld]]’s stake on terms that matched the [name withheld] offer. Soon after that they announced a “farm-out” partnership with the [name withheld] and [name withheld], which gives all three partners an equal, one-third share in the blocks. Oil Capacity Tullow Oil has enjoyed a near 100% success rate (only 1 out of 29 wells drilled were abandoned during the period 2006-10). ______________________________________________ From: eGram Gateway Sent: 12 August 2010 18:53 To: [name withheld] Subject: UGANDA: TULLOW OIL UK listed Tullow Oil buys [name withheld]’s Ugandan assets [information withheld] From KAMPALA Despatched 12/08/2010 15:42:00 GMT Detail 1. We reported last month on Uganda’s tax dispute with [name withheld] and on Tullow Oil’s proposed partnership deal with [name withheld] and [name withheld]. At his meeting with Museveni on 23 July, Mr Bellingham made clear the UK’s strong support for Tullow’s engagement in Uganda. [information withheld] 2. On 6 July, Onek (Energy Minister) wrote to Tullow formally approving their acquisition of [name withheld]’s Ugandan assets. [information withheld] 3. [information withheld] 4. [information withheld] 5. [information withheld] 6. [information withheld] Comment 7. [information withheld] 8. A letter from Mr Bellingham following up his recent visit to Uganda would be timely. The letter could cover the Tullow angle, the forthcoming UKTI oil and gas mission to Uganda and other key bilateral issues [information withheld] {[name withheld]} ____________________________________________ From: [name withheld] Sent: 13 August 2010 09:53 To: [names withheld] Cc: Martin Shearman (Restricted); [names withheld] Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA - Urgent - Tullow/[name withheld] progress? [name withheld] The attached e-gram (which hasn't yet been distributed throughout the office) has the latest developments on Tullow and the [name withheld] tax situation. [information withheld] A follow-up letter from the Minister could go some way towards achieving that. When will the next opportunity to get a letter sent out from the Minster be? Regards [name withheld] ____________________________________________ From: [name withheld] Sent: 12 August 2010 17:25 To: [names withheld] Cc: Martin Shearman, [name withheld] Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA - Urgent - Tullow/[name withheld] progress? Importance: High Thanks - could you provide an update on the Tullow situation by tomorrow 3pm please? [information withheld] If nothing has changed since the Minister's visit, please let us know asap as he wanted to tell the FS that progress was being made after the Museveni meeting and he clearly can't if this is not true! Thanks. [name withheld] ____________________________________________ From: [name withheld] Sent: 12 August 2010 17:13 To: [name withheld] Cc: [name withheld] Subject: FW: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY Importance: High [name withheld] We'd like the minister to send a follow-up letter to Sam Kutesa (Uganda's FM). Will there be any opportunity to get a letter signed off before August 27th? [information withheld] The 27th wouldn't necessarily be too late, but from our perspective the sooner that action is taken on this tax dispute the better. Please let me know what you think. Regards [name withheld] ______________________________________________ From: [name withheld] Sent: 03 August 2010 08:32 To: [name withheld] Cc: Martin Shearman (Restricted); [names withheld] Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY Importance: High [name withheld] We would recommend a follow up letter from the Minister to Kutesa, with the following elements: [information withheld] Trade [name withheld] Comment: [information withheld] - On Trade, a separate letter from the Minister to the CEO of Tullow (UK) would certainly be appreciated. [information withheld] _____________________________________________ {[name withheld]}Cc: Martin Shearman (Restricted); {[name withheld]} Subject: RE: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY:Id=5028598 {[name withheld]} [information withheld] {[name withheld]} ______________________________________________ From: eGrams AD(EAGLS) Sent: 27 July 2010 10:22 To: [names withheld] Subject: FW: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY Importance: Low ------------------------------------------- From: eGram Gateway Sent: Tuesday, July 27, 2010 10:21:50 AM To: eGrams eD AD(EAGLS) Subject: UGANDA: VISIT OF MINISTER FOR AFRICA, 21-25 JULY Importance: Low Very positive visit. Warm welcome too from British business, and useful work done in support of Tullow Oil's investment in Uganda. [information withheld] From KAMPALA Despatched 27/07/2010 09:20:00 GMT 1. [information withheld] 2. [information withheld] 3. [information withheld] TRADE 4. [information withheld] Mr Bellingham said that we were strongly supportive of Tullow Oil's involvement in Uganda and hoped that Museveni would take the decisions needed to allow them to get on with their deal with [information withheld] and bring in further investment, [information withheld] 5. Tullow gave Mr Bellingham a full brief on their business, and its potential to transform the Ugandan economy as well as generate significant return to the UK. An interesting roundtable with Tullow and other British business representatives threw up a number of ideas for promoting British business, which we will pursue. [information withheld] SHEARMAN ____________________________________________________ From: Henry Bellingham 10 August 2010 Dear Foreign Secretary 1. [information withheld] DRC would benefit from a deal with Tullow as they intend to build a pipeline to the east coast for oil from the Uganda side of Lake Albert, due to begin flowing in around 18 months time[information withheld] [information withheld] Uganda 2. My meeting with President Museveni allowed me to raise a specific trade issue, again regarding Tullow Oil. Though better than in DRC, the situation is stuck due to the question of taxes paid by [name withheld], from whom Tullow have bought the rights to the blocks on Lake Albert. [information withheld] Consequently, Tullow have concluded the deal with [name withheld], allowing both companies’ share prices to rise by approximately 50p and £1, respectively. [information withheld] Henry Bellingham ______________________________________________________________________ From: eGram Gateway Sent: Tuesday, August 24, 2010 11:19:44 AM To: eGrams eD AD(EAGLS) Subject: UGANDA: TRADE: TULLOW OIL Tullow Oil have hit serious problems [information withheld] which threaten their [information withheld] investment in Uganda. [information withheld] Recommendation that we intervene urgently at Ministerial level with President Museveni. From KAMPALA Despatched 24/08/2010 10:19:00 GMT 1. I have just seen Aidan Heavey, CEO and founder of Tullow Oil. He came from a meeting last night with President Museveni, the aim of which was to settle the next stage of Tullow's investment in Uganda with [name withheld] and [name withheld] following Tullow's [information withheld] acquisition of [name withheld]’s Ugandan assets on 26 July 2. [information withheld] 3. [information withheld] The [information withheld] deal and Tullow's spend on exploration in Uganda total around [information withheld] Comment 4. [information withheld] 5. Their success has also been bringing other major UK firms, such as [name withheld] and the [name withheld], to the market. [information withheld] 6 [information withheld] SHEARMAN [Personal information]

From: {[name withheld]} Date: 03/09/2010

Tanzania: Why did Lowassa and Magafuli not protect British investors?

 

The following, is part of a communication from a former senior Tanzanian minister to a senior member of the British government concerning the registration of the lease to Silverdale & Mbono Farms.

 

Dear Stewart,

After some chasing around, I managed to speak to Ngasongwa from Zanzibar yesterday, before he departed to Singapore and New York.

He said straight away that he hadn't been able to make as much progress as he'd have liked:  He had spoken to TIC, who had written to him confirming that they could issue the certificate of foreign investment as soon as the lease was registered.

It was clear to Ngasongwa that the lease should be registered. Even the papers Mengi had given him, despite Mengi's attempt "to be clever", showed no reason why the lease should not be registered.

But Ngasongwa had been unable to get hold of Magafuli, the Minister of Lands, who was travelling outside Dar es Salaam.

He had spoken to the Deputy Minister, but she had said she couldn't do anything in the Minister's absence.

So Ngasongwa had written to Magafuli encouraging him to impress on the Commissioner of Lands the need to proceed with registration. He had copied this letter to Lowassa and enclosed with it a copy of the TIC letter and my letter to him of 6 September (to which is also attached your letter to the Regional Commissioner).

Ngasongwa promised me a blind copy of his letter to Magafuli. I hope that will be waiting for me when I get back into the office tomorrow.

Ngasongwa said he would resume the chase on his return to Dar es Salaam on (probably) 29 September.

This is still frustratingly slow, and I'll be interested to see what Ngasongwa's letter to Magafuli actually says. But I do have the impression that Ngasongwa really does feel he needs to sort this matter out, at last. And it's good that he copied his letter to Lowassa.

Best wishes

-------------

September 2009.

Reginald Mengi: Two faces that tell a different story.

 

Reginald Mengi

Outside  the High Court in London in 2012 where he was found complicit in corruption that destroyed private sector investment in Tanzania and his “selfless dedication to humanity and a determination to labour for the public welfare” questioned.

Reginald Mengi

  Appears in this months Forbes magazine.
 http://www.forbes.com/profile/reginald-mengi/

Spot the difference in the above photographs? 

Ironically, you cannot, they are both  the same. So what's the point? 

Well the point is, the difference in what you will read about Reginald Mengi depending on where you view the photograph on the Internet. Forbes, or the judgement in the London High Court case Mengi v Hermitage where Reginald Mengi was found to be complicit in corruption, to have misled the London High Court and to have used his media as a tool of journalistic terrorism against lawful British investors in Tanzania which led to the destruction and theft of the lease to their farm Silverdale.

Reginald Mengi features this months Forbes magazine which writes up Reginald Mengi as a great and rich African entrpreneur. 

Their website includes the following amongst copious other compliments:-

Tanzanian Millionaire Receives Lions Philanthropy Award

Mengi was granted the International Order of the Lion- the highest award the Lions Club bestows on philanthropists on Tuesday the 4^th of March 2014 during a gala banquet in Dar es Salaam which was well attended by prominent Tanzanian businessmen, politicians and diplomats. Mengi ... was honoured for his “selfless dedication to humanity and a determination to labour for the public welfare”.

About his media empire Forbes state "Reginald Mengi, a newcomer to Forbes' list of Africa's Richest, chairs privately held IPP Group, a Tanzanian conglomerate that owns 11 national newspapers (including Tanzania's Financial Times, ThisDay and The Guardian), three of East Africa's most popular television stations (EATV, Capital and ITV), and about ten radio stations"

What Forbes fail to point out to it's readers is that Reginald Mengi was found by the London High Court in December 2012 to have been complicit in a particularly nasty piece of corruption, to have misled the court, probably have been guilty of criminal libel in Tanzania should the authorities have chose to prosecute him and to have used his media as a means of journalist terrorism to destroy lawful British investment in Tanzania. Importantly, the High Court found that Mengi's media operated a bias and favourable policy in favour of President Kikwete.

The High Court ruling made damning rulings on Mengi's business conduct and the use and abuse of his media power.
Forbes states that their magazine is a leading source of reliable business news and financial information. Indeed they make the following claim.

The Forbes 2014 Investment Guide: The Best Advice Of All Time

Reginald Mengi is the Chairman of the Tanzanian Private Sector Foundation and takes a very vocal anti corruption stand using his newspapers to do so. He  is a strong supporter of attracting private sector investment in Tanzania. What is extraordinary, is that Forbes, felt it appropriate not to mention anything at all about Mengi's failed High Court action where he was found guilty of being complicit in corruption that destroyed private secotor investment which left his reputation in tatters and had obvious impact on the way in which prospective investors in Tanzania, would view the business enviromnent as portrayed by Tanzania's Private Sector Foundation (TPSF) of which Reginald Mengi is chairman.

This is an extraordinary ommission by Forbes. Steve Forbes, editor in chief of the magazine states “With all thy getting, get understanding." Well readers of Forbes may get a fuller and better understanding of Reginald Mengi by reading the following press release by UK lawyers Carter Ruck after his failed libel case brought against British Lawyer Sarah Hermitage in London (extracts printed below).

http://www.carter-ruck.com/Documents/Hermitage_Press_Release-301112.pdf

The libel case, thought to have cost Reginald Mengi in excess of $5 mil can be read at the following link :-

http://www.5rb.com/case/mengi-v-hermitage-no-2/

Press Release

Date: 30 November 2012

Sarah Hermitage Libel Defence Upheld

Silverdale Farm Blog Justified

At the High Court in London today, Mr Justice Bean delivered
Judgement in favour of Sarah Hermitage, who had been sued for
libel by the wealthy Tanzanian businessman, Reginald Mengi,
the Executive Chairman of IPP Ltd,a company which holds major
newspaper and broadcasting interests in Tanzania.

Reginald Mengi sued in respect of five postings on Sarah Hermitage’s
Silverdale Farm blog and two emails she had sent, which Mr Mengi
claimed to be false and defamatoryof him.

During the trial, the Court heard unchallenged evidence from Sarah Hermitage

and her husband, Stewart Middleton, as to how they were by threats,

intimidation and corruption driven from Tanzania and forced to abandon the

investment they had made in their farm, Silverdale,of which Reginald Mengi’s

younger brother, Benjamin, then took possession.

The Court was told that a major factor in the ordeal they suffered was the
  hostile and defamatory coverage their case received from the IPP-owned
English language Guardian and the Swahili Nipashe newspapers.

Reginald Mengi, in the course of his evidence, repeatedly stated that
he“was not responsible, not accountable and not answerable”for the
editorial content of IPP publications.

In giving Judgement, Mr Justice Bean ruled:

“I find that the campaign in the Guardian and Nipashe facilitated
Benjamin’scorruption of local officials and intimidation of the Middletons
and thus helpedBenjamin to destroy their investments and grab their
properties; and that Mr[Reginald] Mengi, since he either encouraged
or knowingly permitted thecampaign, was in that sense complicit in
Benjamin’s corruption and intimidation. The allegation is thus substantially
true, and justified at commonlaw"

After handing down judgment Mr Justice Bean ordered that Reginald Mengi

should pay the defence costs at the higher “indemnity” rate. In reaching this

decision, the factors cited by the Judge included that Counsel for Sarah
Hermitage had“rightly described the litigation as “oppressive”,that
“enormous costs had been thrown at the case from the beginning,
indeed before the issue of proceedings”and that the evidence of the
Claimant and his witnesses had in a number of respects been“misleading
 and untrue.”