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Should Finance Minister Mkullo resign over CHC corruption?

Discussion in 'Jukwaa la Siasa' started by nngu007, Nov 19, 2011.

  1. nngu007

    nngu007 JF-Expert Member

    Nov 19, 2011
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    16th November, 2011
    Measures taken by Tanzania's Finance Minister Mr. Mustafa Mkullo to dissolve the board of directors and dismiss the Director General of Consolidated Holding Corporation-CHC, has raised a number of questions on whether Mkullo's move was a cover up for something dubiously big at CHC.Mr Mkullo's move especially at a time when investigations were still taking place into allegation of corruption and abuse of office within the company raised a red flag that the Ministers move may have been ill intended. There are ongoing investigation whether the members of the Parliamentary Parastatal Organizations Committee (POAC) were bribed.It should be remembered that this year (2011) the minister Mr. Mkullo accused the Chairman of POAC, Zitto Kabwe in the parliamentary budget session that he was bribed by the management so that they could lobby for CHC's tenure extension. (Read more on our previous article: Kudos for 2011/12 parliamentary budget session in fighting graft).

    The allegations by the minister, created a tense motion that was strongly opposed by POAC Chair Hon Zitto Kabwe who requested an investigation by the CAG to be conducted to determine whether himself or any member of the committee was bribed to defend CHCs continued existence. "Mr. Chairman, first I ask the Minister for Finance (Mkullo) to prepare terms of reference that will be used in the investigation of the Tsh60 mln he claimed was offered as bribe to the members of committee."
    "But secondly I ask the Minister of State in the President's Office (Good Governance) to instruct the Prevention and Combating of Corruption Bureau (PCCB) to carry out an official investigation on the matter. And this inquiry should be open and be announced publicly," said Kabwe."Should the investigations reveal that I was bribed or any member of my committee received any bribe or enticement whatsoever not only shall I resign my position as POAC chairman but I will also resign my position a Member of Parliament, said Kabwe."But Madam Speaker, I also demand that should the Ministers allegations be found false, he should resign his position as Minister of Finance", Mr Kabwe added.Before the investigations were concluded, the Minister unilaterally dissolved the board of directors of CHC and terminated the tenure of its Director General.Investigations are still ongoing and there is no any further information that has been made public yet, the Ministers move could jeopardize the whole investigation process.Reacting to the move, Hon Zitto Kabwe, chairman of (POAC) made ​​his stand on Mkullo's decision through a press meeting on, October 13, 2011 said his offer to the Minister still stood and the minister's move was premature and questinable.

    "In his audit the Controller and Auditor General (CAG) via Ernest and Young Company requested to conduct an interview with the Minister for Finance on various alleged encounters in the CHC which declined. Mkulo refused to speak to the inspectors and instead wrote a letter (REF: TYC/B/70/2/03 of October 8, 2011) that responded to the accusations against him that he ordered the sale of the land without following the proper procedures of law." read part of the press release issued by Zitto Kabwe.
    Hon Zitto who also doubles as Shadow Minister for Finance, indicated in his statement that despite the fact that Mkullo denied selling the plot to someone he knew. Mr Kabwe said he was in possession of evidence in the form of documents from the Treasury which indicated that Mr Mkullo was an accomplice to a corrupt and illegal sale of CHC property.

    As an example Mr Zitto cited a letter TYC/A/290 / 13 / 4 of 9 March 2011 which directed CHC to implement the inquiry of the Minister for Finance concerning plot No. 10 along Nyerere Road and a meeting held at Morogoro Hotel between the Minister for Finance and Chairman of the Board of CHC."
    Two days after a reply was sent to the CAG, Finance Minister Mustafa Mkulo decided to undo his decision to extend the Board of CHC's tenure until the end of December 2011. This decision might have aimed at hiding the truth, because without CHC's Board of Directors, the Treasury takes control and audits reports which must be taken to the Treasury, who head is the Minister for Finance who in this case is the suspect, Hon Zitto said.

    The Ministers action to order the suspension from work of the Director General will jeopardise the effectiveness of the ongoing investigations by the CAG. The findings of these investigations should be submitted to the Speaker of Parliament for further action, after all this is where the whole saga began in the first place.
    Mkullo when interviewed said that Kabwe's arguments did not have any ground and lack vivid truth and may be Kabwe had personal grudges with the minister.In discussing the context of the ongoing investigation, "I think Mr Kabwe has not well understood the context of this investigation.... it is the Prime Minister (Mizengo Pinda) who ordered an investigation to be conducted. I directed the board to ensure that the investigations are conducted according to the instructions of the Prime Minister. Now how can someone say I will affect the outcome of the report that will be tabled?" Questioned, Mkullo.[/TD]
  2. Songambele

    Songambele JF-Expert Member

    Nov 19, 2011
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