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Did ministry mislead Kikwete on Kiwira?

Discussion in 'Jukwaa la Siasa' started by CAMARADERIE, Mar 7, 2011.

  1. CAMARADERIE

    CAMARADERIE JF-Expert Member

    #1
    Mar 7, 2011
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    By The Citizen Reporter
    Dar es Salaam.

    What an embarrassment! Part of President Jakaya Kikwete’s recent televised address to the nation about Kiwira Coal Power Limited (KCPL) was based on outdated information, The Citizen has found out.The blame goes directly to the ministry of Energy and Minerals for its failure to update the President appropriately on the current status of the company, in which the government has a 30 per cent stake and Tan Power Resources Company holds 70 per cent of the shares.

    In his end of February address, President Kikwete mentioned a plan to seek a $400 million loan for revival of the mine, but documents seen by The Citizen tell different picture on what is going on about the Kiwira coal mine.Apparently, the President’s remarks about the loan were based on a document the ministry prepared in March 2010 about the transfer of KCPL ownership and procurement of credit for the company’s development.The same document was presented to the President’s secretary when Mr Kikwete demanded an update on KCPL during a cabinet meeting held on February 15 this year.

    “I forward to you a copy of the statement by the minister for Energy and Minerals with reference number CDA.48/171/01 of April 1, 2010, so that you present the same to the President for his directive,” reads part of a cover letter that accompanied the document, which was prepared one year ago. The Energy ministry’s Permanent Secretary, Mr David Jairo, signed the cover letter, seen by The Citizen, with reference number CDA.48/171/01/13. It was also copied to the Chief Secretary and the minister for Energy.On the basis of that document, President Kikwete said in his end of the month address:

    “The Kiwira project has been delayed by the process of changing its ownership and obtaining $400 million to enable the construction of a 200MW power station. The issue of changing the ownership is in final stages and there are high prospects of getting the loan.”While the President talks about the loan, other documents seen by The Citizen, indicate that the process was ongoing last December for the National Social Security Fund (NSSF) to take over operations of KCPL.
    According to one communication from the ministry of Finance’s permanent secretary to the executive Ddrector of Tan Power Resources Limited, the government had already appointed Consolidated Holdings Corporation (CHC) to conduct a special audit of all assets and liabilities of KCPL.

    The audit was part of processing the NSSF application and the permanent secretary in Energy ministry was sent a copy of the same communication.
    The audit followed recommendations by CHC after going through the NSSF application as contained in another letter to the Treasury PS from CHC acting director general, Methusela Mbajo on January 6 this year, which was also copied to the PS in the Energy ministry.According to the CHC appraisal of the application, “NSSF deserves to be praised for coming up with the good idea which may revive the Kiwira power project” but, the way it appears, the Energy ministry did not pass on the information to President Kikwete.

    The Citizen tried to contact Mr Jairo for comment on why the ministry had sent outdated information to President Kikwete, but he was not reachable since Friday.
    According to the letter with reference number CHC/DV/1/13/280, CHC formed a divestiture technical team (DTT), as advised by the Treasury PS, to discuss the NSSF proposal and advise the government accordingly. Mr Mbajo told the Treasury PS that DTT held a meeting on December 23 last year and recommended an audit of KCPL.

    “In order to ensure a smooth process in getting NSSF take over Kiwira Coal and Power Limited, the shareholders of KCPL should meet and resolve on the issue of government taking over the shares of Tan Power Resources Limited,” reads part of the February 22 letter signed by Mr Mbajo.It is understood that Tan Power Resources Company shareholders have met and agreed to relinquish their shares in KCPL. CHC also hailed the NSSF proposal in the view that it would prevent Kiwira Coal Mine from being sold to an unfavourable purchase who may not be inclined to back the government initiatives for boosting electricity generation.After noting advantages of NSSF move, the DTT recommended that the Government, through the ministry of Energy and Minerals, fast-tracks the process of taking over Kiwira from Tan Power Resources Limited.

    Though the document on repossession of KCPL shares was prepared in March last year, it was forwarded to President Kikwete for approval on February 24 this year.
     
  2. CAMARADERIE

    CAMARADERIE JF-Expert Member

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    I'm not suprised seeing the president being misled on such an important issue. Remmember the AMBULANCE issue, the Arusha HOTEL demolition issue and others. The problem is that the President does not have competent people to assist him!!
     
  3. o

    ol'kitkit Member

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    Mar 7, 2011
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    and yet, no drastic measures will be taken against those who gave wrong information...gosh!!!!!!!!!!!!!!!!!
     
  4. CAMARADERIE

    CAMARADERIE JF-Expert Member

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    Bora liende style of leadership
     
  5. Horseshoe Arch

    Horseshoe Arch JF-Expert Member

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    Kiongozi asiye makini hufanya kazi na wasaidizi wababaishaji km yeye...JK kafanya blonder nyingi sana hata kabla hajawa kiongozi mkuu kiitifaki,hivyo wanachofanya watendaji wake si kipya kwake!
     
  6. B

    Byendangwero JF-Expert Member

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    The thead in question is very disturbing indeed; in the first instance it gives yet another proof, that JK is not in control. Worse still, it calls into guestion, the seriousness and capability of JK's government. KIWIRA was a subject of intense discussion during the 9th parliament and hence, one would have thought that following that heated debate, the government would have done everything possible to rectify the situation, which doesnt seem to be the case.
     
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