separate depreciation from various replacement purchases. The
Government-appointed auditor complained that he could not
satisfy himself that the correct sums had been paid to Govern-
ment. In fact it seemed that substantial sums were due to the
Government.

By this time Mlonot was off on another tack. They opened
another hotel, the Africana Vacation Village, ten miles from Dar
es Salaam, and this one, unlike the Kilimanjaro was both owned
and managed by them. The General Manager of the Tanzania
Tourist Corporation expressed his surprise: In 1961 no one
thought that Mlonot would start its own hotel operation in Tan-
zania in 1970.1¢

From the start Mlonot used the Kilimanjaro to establish and
subsidise its own Africana. Mlonot’s much publicised delay in
paying its debts to Government in late 1970 (on 4th November
the Managing Director of Mlonot , Mr. Kurt Levy, said that ‘there
was no truth in reports that Mlonot . . . owes the Government a
substantial sum of money’, but on 15th December one day before
a' deadline set by the Government, they paid just under two
million shillings'?) is explained if one assumes that all its liquid
funds were tied up in their Africana, including the amount owing
to Government and it also explains why, when asked to pay, Mr.
Levy was concerned about the credit squeeze (which would not
have been relevant if the profits had simply been banked with the
National Bank of Commerce).

A meeting was held on 6th April 1970 to discuss the relation-
ship between the Kilimanjaro and the Africana. Five people con-
nected with Mlonot attended, but no one from the Tourist Cor-
poration was invited. The meeting decided that there should be
complete transferability of staff between the two hotels. Staff
trained at the Kilimanjaro were thus made available to the
Africana, but the Africana did not pay for the training costs.

Laundry services, and some equipment and uniforms, were
made available to the Africana for hire charges set by Mlonot.
Government had no say in setting the charges.

The whole situation was wide open to abuse.

Milonot was initially paid T. Shs. 400,000/~ to provide training
for Tanzanians. In response they had sent twenty Tanzanians for
training in Israel in 1962, and in 1964 they advertised for twelve
more for senior posts in such areas as housekeeping, reception and
stores.'®

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