American tycoon in Lupita island dubious acquisition

Lupita Island

A California-based tycoon and financier of former governor Arnold Schwarzenegger is among shareholders who own Lupita Island, which was sold dubiously few years ago, The Guardian can reveal today.

The revelation comes as the Ministry of Lands, Housing and Human Settlements Development, launches an investigation into acquisition of the island on Lake Tanganyika.

The businessman, Tim (Timothy) Draper is a 25 percent shareholder in the company, namely, Firelight Safaris that claim to own the island, which habours one of the most expensive tourist hotels in East Africa charging up to USD1000 (Sh1.58 million) a night and up to USD27,000 (Sh42.6 million) to expedite the entire island. The island is situated in Nkasi district, Rukwa region.

The company’s majority shareholder is Tom Lithgow, a Tanzanian of British origin based in Arusha -- who holds 51 percent and his wife, Belinda Lithgow with 24 percent shares.

On September 16, 2012, The Guardian on Sunday carried an exclusive report on how the 130-hecre island on Lake Tanganyika was dubiously acquired without adherence to laws governing lands. Acting Commissioner for Lands at the Lands ministry Anna Mdemu said then that her office was not in possession of any documents related to the island’s acquisition.

A week ago the Minister for Lands, Prof. Anna Tibaijuka was quoted by the state owned Daily News as saying that she had directed the ministry’s director of legal affairs to investigate the matter.

Draper is one of the owners of the capital venture firm namely Draper Fisher Jurvetson (DFJ), named after founders; Tim Draper, John Fisher and Steve Jurvetson

Available documents on the internet and international media outlets indicate that the firm which is one of big players in the private equity industry was founded in 1985 and holds capital commitments amounting to $7 billion (Sh11 Trillion) -- which is equal to 73.3 percent of Tanzania’s 2012/13 annual budget.

With its base in Menlo Park, California, DFJ is reported to have affiliate offices in more than 30 cities across the globe – Moscow (Russia), Tel Aviv (Israel), Shanghai (China), Seoul (South Korea), Sao Paolo (Brazil), Ho Chi Minh (Vietnam) and several cities within the United States. Draper and his family are reported to have contributed over a quarter of a million dollars to Arnold Schwarzenegger-controlled campaign committees in his bid to become the California Governor.

Described as California based venture capitalist, Tim Draper has also visited Lupita island, where he cerebrated his 50th birthday. He was accompanied by his family and closest friends.

Describing the place, Draper said: “For my 50th birthday, my wife and I celebrated with our closest friends in one of the most beautiful places in the world: Lupita Island. Many people do not know that Lake Tanganyika is not only the world’s second largest freshwater lake but it is also the second-deepest.”

Firelight Safaris Ltd, currently known as Tanzania by Firelight also owns other two tourist facilities; Mwangamoto luxury mobile tented camp in Serengeti National Park and Palahala Lodge which includes a luxury tented camp in the Katavi National Park.