TANZANIA:MKAPA UNDER FIRE IN BUNGE

The Citizen (Dar es Salaam)
23 April 2008Posted to the web 23 April 2008
Damas Kanyabwoya
Dodoma Graft allegations against former President Benjamin Mkapa yesterday surfaced in Parliament for the first time, with some legislators from the ruling party accusing him of sabotaging Tanzania Electric Supply Company (Tanesco).
MPs, who were debating the 2007 Electricity Bill, said the current high operational costs resulting mainly from capacity charges was contributed by the dubious contract entered between Tanesco and Tan Power Resources Co. Ltd.
Tan Power Resources is linked with former head of state and Mr Daniel Yona, who was the minister for Energy and Minerals during the Third Phase government.
Debating the Bill, Mr Aloyce Kimario (Vunjo-CCM), alleged that Mr Mkapa sabotaged Tanesco.
Mr Kimario said the heavy burden of capacity charges on Tanesco is partly due to the Sh146 million daily that the power company pays Tan Power Resources.
He said in 2005, Mr Mkapa and Mr Yona bought the Sh4 billion Kiwira coal mine through their Tan Power Resources Company at Sh700 million, but they eventually paid only Sh70 million.
The MP said they bought Kiwira under dubious circumstances and without floating a tender.
In 2006 the company entered into another dubious contract of supplying power to Tanesco, while receiving a Sh146 million in capacity charges per day.
The MP mentioned other independent power producing (IPP) companies as Independent Power Tanzania Limited (IPTL) that receives Sh114 million daily as capacity charge. Others are Songas "We need to say now that enough is enough! We cannot continue like this. And all those implicated in causing losses to this country must be dealt with according to the law," he said.
He urged Energy and Minerals minister William Ngeleja to ensure all those people owning the companies that milk government coffers in capacity charges daily are not allowed to invest in the electricity sector after doors are opened as per the new Electricity Act.
"All big hydroelectricity projects such as Stigler's Gorge, Ruhiji and Rumakali should be given to Tanesco. Private investors should be allowed to produce power by using their own sources," the MP intoned.
Mr Siraju Kaboyonga (Tabora Urban-CCM) also blamed the former president for his involvement in companies that have been milking Tanesco heavily, "leaving the state owned company basically on its knees."
The MP advised the government to divide Tanesco into three different companies so as to increase the sector's efficiency.
One company should be for generation, another for transmission and another for distribution.
"And after Tanesco is divided the new power generating company to be formed should sell shares to the public as it was done in Kenya 's KenGen," he said.
By no means, declared the MP, should the transmission infrastructure of electricity be left in private hands because 'they are the core of electricity power.'
Instead, he urged the government to improve the current transmission infrastructure because it has low capacity, blamed for losses of about 10 per cent of the power Tanesco transmits.
MPs also raised security concerns with regard to proposed reforms in the power sector.
Mrs Anne Kilango-Malecela (Same East-CCM) said private investors should not be allowed to have a monopoly in the electricity sector because it will be easier to sabotage the country.
She wants new investments made to Tanesco to make it competent and withstand competition.
Mr Mkapa's name has surfaced in various scandals committed during his third phase regime, with some MPs and opposition camp urging for the removal of his immunity to allow investigations against him.
However Mr Mkapa has so far declined to comment on various allegations leveled against him, maintaining that he has retired from politics and was not ready to say anything.
President Jakaya Kikwete is also on record suggesting he wasn't ready to lift immunity on retired presidents.
Mr Kikwete told editors last year at the State House that he would rather let former presidents retire in peace than subject any of them to investigations.
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Despite the credible achievements reached during his regime including improvement of tax collections, attraction of foreign direct investments and reduction of the country's external debt, it has now emerged that the third phase regime was marred by huge corruption scandals.
Notable controversial deals include the purchase of a civilian and military radar system from BAe Systems and a presidential jet.
Others include the Meremeta gold company contract, the External Payments Arrears account mismanagement and inflated costs of the construction of the Bank of Tanzania twin towers, the privatisation of parastatal firms, among others.