Tanzania is at a crossroads.

It is wondering whether to investigate an international corruption case involving British arms manufacturers BAE systems.

This is after the company admitted it was guilty of dubious financial dealings in its sale of a $46 million Watchman Air Traffic Control System to Tanzania.

BAE Systems admitted there were malpractices in the process, and offered to refund the Government of Tanzania $46 million.

Chairman Dick Olver said in an interview: “Under the agreement with the Serious Fraud Office, the company will plead guilty to one charge of breach of duty to keep accounting records in relation to payments made to a former marketing adviser in Tanzania.

“The company will pay an agreed penalty of £30m ($46m), comprising a fine to be determined by the court, and the balance as a charitable payment for the benefit of Tanzania.”

In Tanzania, senior officials of the Prevention and Combating of Corruption Bureau (PCCB) and the Ministry of Justice were tight-lipped on whether to continue with investigations.

Last week, UK’s Serious Fraud Office (SFO) allowed BAE to plead guilty to the offence of selling to Tanzania a £28 million air traffic control system, yet requesting $46 million in payment.

The SFO then dropped its charges against those involved in the scandal, who included Tanzanian officials Andrew Chenge (the then Attorney General), tycoon Tanil K.C Somaiya of Shivacom and Shailesh P. Vithilan.

In court, they were accused number six, eight and nine, respectively.

Accused number seven is not mentioned on the charge sheet.

Mr Chenge was later appointed a Minister for Infrastructure Development in the Kikwete administration.

He resigned after SFO implicated him in the scandal, with claims that he received $1.5 million from BAE.

The World Bank and the International Civil Aviation Organisation — before and after the purchase of the system — said it was unnecessarily overpriced.

The PCCB investigation was, however, largely dependent on SFO findings, meaning the country will have to conduct its own probe.

This viewpoint is supported by the Deputy Leader of the official opposition in the National Assembly, Dr Wilbrod Slaa.

The SFO has been investigating the $39.5m (Tsh53 billion) contract signed in 1999 to supply a radar system to Tanzania.

The probe relates to payments of $12 million to Shailesh Vithlani, BAE’s former marketing adviser in Dar es Salaam.

A six-year investigation by SFO identified key roles played in the radar deal by Mr Chenge and Dr Idris Rashidi, the then Bank of Tanzania governor.

PCCB public relations officer Doreen Kapwani told The EastAfrican that they were yet to issue a statement on the matter.

“There is a bureau event soon, you may get your answers then; after all, the director (Dr Edward Hosea) is at a meeting,” she said.

The Minister for Justice, Mathias Chikawe, declined to comment on the matter.

By pleading guilty under section 221 of the Companies Act, 1985, BAE will not face an embarrassing court case.