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Tanzania fires top banker
10/01/2008 14:53 - (SA)
Arusha - The Tanzanian president fired the boss of the country's central bank after international auditors discovered more than $120m was missing, said a spokesperson.
"The president has been seriously disturbed by the losses disclosed by an independent Ernst & Young international audit firm's report," Philemon Luhanjo, the president's chief secretary, said late on Wednesday.
Luhanjo said the auditors disclosed that the bank had made false entries for payments worth more than $120m to 22 local firms, many of which did not exist.
President Kikwete ordered an investigation and promised that those responsible would be prosecuted.
The sacked governor, Daudi Ballali, was in a United States hospital. He resigned his position last month as the auditors were finishing their report, citing health reasons. He was replaced by his deputy, Benno Ndulu.
US ambassador Mark Green welcomed the investigation, saying in a statement, "We believe that the government's decision to press forward with an investigation of irregularities at the Bank is indicative of President Kikwete's resolve to combat corruption."
Kikwete took office in 2006 on a platform of fighting graft in Tanzania, one of southern Africa's poorest countries.
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