The Tanzanian government is embroiled in a row over a Manx company which was alleged to have been involved in corruption.

Meremeta Gold, set up in the Isle of Man in 1997, declared itself bankrupt in 2006, less than twelve months after it claimed to have produced more than 2,000 kilogrammes of the precious metal.

But opposition leaders in Tanzania claim it was a front company used by the Tanzanian military to fund its cash-strapped vehicle manufacturing division.

More questions about the affair surfaced this week as the Minister of Defence and National Service Hussein Mwinyi presented his budget proposals for the year.

Previously, Tanzania's Prime Minister Mizengo Pinda declared in Parliament the project was a classified military matter.