A group of London’s largest institutional shareholders are to call on the UK Government to use its £151m aid budget to Tanzania to tackle growing corruption in the east African state.
The shareholders in UK listed companies operating in Tanzania are to write to the Department for International Development calling on it to use the substantial aid budget to safe guard UK investment into the country.
A draft of the letter, seen by The Daily Telegraph, states: “DFID purports to invest £151m directly into Tanzania per year and we respectfully seek assistance by the Department to held safe guard, and ensure ongoing investment by UK shareholders into the country made through London exchanges.”
Although the shareholders asked to remain anonymous they are among the top 10 investors in companies such as Ashanti Gold, Barrick Gold and Richmond (Berlin: RC9.BE - news) Resources (Euronext: ERS.NX - news) .
The letter states: “It is with serious concern we note an ongoing 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.”