Unscrupulous tour operators siphon 2.7tri/-

TANZANIA: THE government has released a “List of Shame,” identifying several dishonest tour operators accused of using fraudulent payment cards for government transactions, siphoning over 1 million US dollars (about 2.7tri/-).

The Ministry of Finance has sent a letter to the Tanzania Association of Tour Operators (TATO), reporting that some Tanzanian tour operators have been involved in making payments with stolen cards.

In the letter, dated September 4, 2024, and referenced MG.233/261/01’A’, Permanent Secretary Dr Natu Mwamba highlighted that these operators have conducted transactions totalling over 1 million US dollars (about 2.7tri/-).

Dr Mwamba expressed concern that the fraudulent actions jeopardise efforts to promote tourism and streamline government payments.

She warned that if such practices persist, they could damage the tourism industry’s reputation and negatively impact the country’s economy.

Additionally, misuse of stolen payment cards could prompt international financial institutions to reconsider their relationships with Tanzanian banks, potentially reducing investment and hindering economic growth.

This could also deter foreign banks from processing transactions in Tanzania, affecting visa and tourism services and causing tourists to choose other destinations, which would deprive the country of foreign currency.

Dr Mwamba urged TATO to advise its members to cease using stolen cards and return any illicitly obtained funds to banks, emphasising that these measures are crucial to supporting the government under President Samia Suluhu Hassan’s tourism promotion efforts.

In response, TATO strongly condemned the fraudulent activities involving some tour operators and expressed full support for the Ministry’s efforts to enhance the tourism industry’s integrity and transparency.

TATO Executive Director Mr Elirehema Maturo commended the authorities for their proactive stance and for revealing the implicated tour operators, reinforcing TATO’s commitment to ethical standards and cooperation with government initiatives to combat fraud.

TATO Chairman Mr Wilbard Chambulo also expressed outrage, calling the fraudulent actions unpatriotic and contrary to industry laws and regulations.

He stressed that such behaviour tarnishes the tourism industry’s reputation, which is vital to the nation’s economy.

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The government’s “List of Shame” indicates that only two of TATO’s 323 active members—Peacock Tours and Safaris Ltd and Kilimanjaro Heroes Adventure Ltd—are implicated.

TATO promptly contacted the companies on September 5, 2024, instructing them to visit NMB Bank branches to resolve the issue, demonstrating its commitment to maintaining high standards of integrity and accountability.

To prevent future fraud, TATO has called for stricter regulations, urging the government to mandate that all tourism service payments be processed through banks and made in the name of the tour company, explicitly advising against the use of third-party payment cards.

This proposal aims to enhance transparency and accountability in financial transactions within the tourism industry.