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NAIROBI (Reuters) – Vodacom Tanzania said Thursday it was accused of causing a loss of 11 billion shillings ($ 4.76 million) to the government as part of the charges against its general manager and other employees following allegations of fraudulent use of network facilities.
"A bail application for people in custody will be reviewed in the coming days," Vodacom Tanzania said in a statement. The company also announced that it has appointed South African Jacques Marais as interim general manager.
Tanzanian authorities on Wednesday accused the chief executive of Vodacom Tanzania and other telecommunications officials of economic crimes, according to court documents.
Egyptian Hisham Hendi and other leaders in the telecommunications sector have "intentionally and deliberately organized criminal racketeering, which has caused the government (…) to suffer a pecuniary loss," according to the document.
They were not allowed to plead or ask for a bail, and are in police custody until April 17, a senior justice official told Reuters.
Vodacom, a subsidiary of the South African group Vodacom, is Tanzania's largest telecommunications company by number of mobile subscribers, with about 32% of the country's 40 million mobile subscribers, ahead of Tigo Tanzania, a subsidiary of Sweden's Millicom, and a local unit of Bharti Airtel, India.
"Vodacom Tanzania reaffirms that it will continue to cooperate with the investigation," he said.
(Report by Omar Mohammed, edited by George Obulutsa and Kirsten Donovan)
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