A major corruption and economic sabotage case involving six Tanzanian public servants, including pharmacists and Medical Stores Department (MSD) officials, has sparked national attention after the accused were arraigned before the Kisutu Resident Magistrate’s Court in Dar es Salaam over allegations of causing a loss of more than Sh14.6 billion to the government.
The six accused are alleged to have participated in a sophisticated scheme involving theft of medicines, abuse of office, and money laundering connected to Tanzania’s public healthcare supply system. The case is being viewed as one of the largest recent scandals involving public health institutions and pharmaceutical supply management in the country.
According to court documents presented by state prosecutors, the accused include MSD senior accountant Suddi Abas alongside pharmacists Petro Mdegela, Rashid Hassan, Edward Tengulaga, Jackson Mahagi, and Wema Mohamed. Prosecutors allege that the offences were committed between July 2021 and June 2025 in various parts of Tanzania, including Dar es Salaam, Dodoma, Mbeya, Songwe, and Singida.
The prosecution informed the court that the accused face a total of 37 charges related to economic sabotage, theft by public servants, leading organized criminal activities, abuse of office, and money laundering. Authorities claim the accused used their positions within public institutions to illegally obtain medicines, medical supplies, and public funds intended for healthcare services.
Investigators allege that medicines and medical equipment valued at approximately Sh5.537 billion were unlawfully removed from MSD stores and diverted for personal gain. The Medical Stores Department is the government institution responsible for procurement, storage, and distribution of medicines and essential medical supplies to public health facilities nationwide.
The alleged loss of more than Sh14.6 billion includes both the direct value of stolen supplies and broader financial damage caused to the institution and public healthcare operations. Prosecutors stated that the accused intentionally caused financial harm to the government through fraudulent transactions and illegal diversion of medical resources.
During the court session, the prosecution further alleged that proceeds from the crimes were laundered through investments in real estate, transport businesses, pharmacies, plots of land, and residential houses. Authorities claim some of the accused acquired properties and established commercial ventures using funds obtained from the alleged illegal activities.
The case was heard before Principal Resident Magistrate Aaron Lyamuya, who informed the accused that they were not required to enter pleas because the Economic Sabotage Court lacks jurisdiction to hear such matters without authorization from the Director of Public Prosecutions (DPP). The court also noted that the money laundering charges are non-bailable under Tanzanian law.
As a result, all six accused persons remain in custody pending further legal proceedings and investigations. The prosecution requested additional time to complete investigations and prepare the matter for hearing.
The scandal has generated widespread concern among healthcare professionals and members of the public due to the critical role MSD plays in ensuring availability of medicines in hospitals and health centres across Tanzania. Any disruption or theft within the medical supply chain can directly affect patients, especially in public healthcare facilities that depend heavily on government-distributed medicines.
Observers say the case highlights ongoing challenges related to accountability, procurement transparency, and financial oversight within public institutions. Anti-corruption advocates have called for stronger monitoring systems and stricter enforcement measures to protect public resources allocated to the health sector.
The involvement of pharmacists in the case has also raised questions about ethics and professional responsibility within the pharmaceutical profession. Healthcare experts note that pharmacists hold positions of trust because they are responsible for handling medicines and ensuring safe access to essential healthcare products.
As investigations continue, many Tanzanians will be closely following the proceedings to see whether the case leads to convictions and broader reforms within the healthcare supply system. The matter is expected to return to court in the coming weeks as prosecutors continue gathering evidence and pursuing legal action against the accused.
