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Tanroads Terminates Norconsult Contracts

Discussion in 'Jukwaa la Siasa' started by Mama, Jun 9, 2008.

  1. M

    Mama JF-Expert Member

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    Tanzania: Tanroads Terminates Norconsult Contracts





    The Citizen (Dar es Salaam)

    9 June 2008
    Posted to the web 9 June 2008

    Tom Mosoba


    The Tanzania National Roads Agency (Tanroads) has terminated all its contracts with Norconsult AS of Norway, The Citizen can reveal today.

    Tanroads is also demanding over Sh3 billion from the engineering consulting firm.


    The Citizen could not reach Norconsult AS president and CEO John Nyheim for the whole of last week to comment on the latest development.

    In an official letter dated May 21, 2008, Tanzania National Roads Agency (Tanroads) CEO Ephraem Mrema directed Norconsult AS to immediately surrender all projects it was undertaking in Tanzania.

    The Tanroads move came a few weeks after The Citizen reported exclusively that the company had been operating illegally in the country for nearly a decade.

    According to the letter, Tanroads has with immediate effect cancelled projects worth Sh7.1 billion that were at various stages of implementation by Norconsult AS.

    Mr Mrema said Tanroads had already paid the Norwegian firm Sh3.31 billion, which it has demanded to be refunded.

    Many of the projects involve the building of roads and were being jointly undertaken by Norconsult AS and its local affiliate Norconsult Tanzania Ltd.

    Mr Mrema also said in his communication that the Norwegian company would be liable to compensate Tanroads for any losses it may incur in the engagement of other consultants to complete work previously undertaken by Norconsult.

    "Also you will be required to compensate Tanroads for the advantages you gained from works contracts relating to expenses for usage of motor vehicles, office facility and accommodation for consultant," read part of the four-page letter.

    The letter was copied to the Infrastructure Development permanent secretary, Norwegian ambassador, Tanzania Revenue Authority (TRA) commissioner general, Engineers Registration Board (ERB), World Bank and Nordic Development Fund based in Helsinki.

    Mr Mrema said Tanroads had decided to halt its working relationship with Norconsult because the firm had been operating since 2002 without registration from ERB.

    According to our findings, the Norwegian firm had also been operating in Tanzania since 1998 without official registration from the Business Registration and Licensing Agency (Brela).

    It was only in March this year that it sought Brela registration.

    Mr Mrema also accused the company of alleged fraud, saying it evaded paying tax to TRA as stipulated in their contracts.

    Reports and documents seen by The Citizen indicate Tanzanian authorities are already probing the Dar office of Norconsult for tax evasion amounting to Sh2.4 billion for the period between 2002 and 2007.

    Mr Mrema wrote in his letter; "Any reasonable person would conclude that your persistent evasion of taxes from 2002 to date and not registering with mandatory professional boards and with other relevant authorities from 2002 to 26/3/2008 while undertaking assignments in the above contracts cannot be taken as unintentional but deliberately premeditated, pre-arranged and designed for the purpose of taking away money and other contractual advantages you did not deserve.

    "This defeats the spirit of observing the highest standard of ethics during execution of those contracts which is the standard you were obliged to observe."

    The Tanroads move effectively puts paid to attempts by Norconsult AS to amend its relations with the Government after it had taken a unilateral decision to withdraw from the country while leveling corruption allegation against its local partners.

    Mr Nyheim May announced in May that the company was pulling out of Tanzania over corruption that he said had cost its operations Sh332 million in its Dar es Salaam office and contravened its global operation ethics.

    He blamed the pullout on Norconsult Tanzania, whose managing director Francis Kifukwe was removed from the post.

    He said its local office had been closed down and all operations moved to Norway from where it will operate.

    But soon after the government threatened to sue the firm for breach of contract, he reversed the decision and said they will be committed to finishing the remaining projects.

    It was not made immediately clear how the business would be run from Norway without a local office.

    The Tanroads letter would therefore come as a surprise to the Norwegian firm that has established its name as a major consulting engineering firm in many other countries and also raise more questions with its dealing with its local affiliate.

    Sources have told The Citizen that Norconsult AS and Norconsult Tanzania have been at loggerheads since the row on its legal backing in the country broke out.

    The two firms have hitherto maintained a relation as one running unit that blurred their line of responsibility and fueled the alleged illegal tax evasion.

    Mr Kifukwe, who had earlier been listed as "sacked", was later said to have voluntarily left the operations, but he has since not been keen on explaining to the press what could be going on within the Norconsult operations in the country.

    When he was announcing the deciaion to quit Tanzania, Mr Nyheim said: "Internal and external reviews of the activities of Norconsult's partly owned subsidiary in Tanzania have revealed activity that is not in accordance with the company's Code of Ethics and contracts."

    He said the misconduct was revealed through Norconsult's own internal review followed by an external review by PricewaterhouseCoopers (PwC).

    "It has been established that in the past several irregular cash payments have been made from Norconsult's partly owned subsidiary in Tanzania, NTZ, totalling approximately NOK (Norwegian Kronor) 650.000 (Sh156 million)," he said.

    He noted that last year, $146 500 (Sh176 million) had been paid out in cash from the project office in Dar es Salaam, with only petty cash receipts as documentation.

    This particular case apparently involved Norconsult's participation in the World Bank funded Dar es Salaam Water and Sanitation Project (Dawasa).

    Some of the projects being run by the firm include Marangu-Rombo Mkuu, Usagara-Geita, Tarakea-Kamwanga and the Unity Bridge on the Tanzania-Mozambique border.

    The firm was also doing a feasibility study and design for the Nzega-Tabora road.

    Other projects, in which the company has been involved in recent years, include the Sengerema-Busagara road (Sh35.7 billion), Geita-Sengerema road (Sh39.5 billion) and the Unity Bridge is southern Tanzania.


    Others are the Rongai-Kamwanga road (Sh14.5 billion), Marangu-Rombo Mkuu road (Sh23.3 billion) as well as the Tarakea-Kamonaga and Mwika-Kilacha roads.

    Others include the World Bank-funded Dar es Salaam Water Supply and Sanitation Project, a joint venture with a local company and a reported Dutch firm that was signed in July 2003.

    A Norwegian publication, Development Today, says the $6.7 million project might lead to Norconsult's blacklisting by the Work Bank
     
  2. s

    sakauye Member

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    thanks for this story,

    hawa jamaa wa-norsk wanajifanya wanatoa misaada sana hapa, kumbe ni hela zetu wenyewe wanaturudishia. hii imetulia sana.
     
  3. M

    Mama JF-Expert Member

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    yaani we acha tu, wanatupaka mafuta kwa mgongo wa chupa, inatia hasira sana! balozi wao sijui atatuambia nini au vile anajua JK atampa tabasamu tu hata kabla hajatoa maelezo if that happen to be.

    World bank wawaaadabishe hawa ipasavyo na iendelee hivyo hivyo na kwa wengine wanaojiita wafadhili.
     
  4. Kuhani

    Kuhani JF-Expert Member

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    Mama,

    Hii Serikali isituambie Wa-Norway hawakufata taratibu bila kueleza kwa nini wao pia hawakufuata sheria ya kutoa zabuni za consultancy


    PUBLIC PROCUREMENT ACT 2004-21 Sect 46 (3)

    Qualifications of Suppliers, Contractors and Consultants

    Where as a result of the procurement proceedings, any foreign supplier, contractor or consultant is selected as having submitted the lowest evaluated responsive tender or the best ranked proposal, such a supplier, contractor or contractor shall register with the appropriate professional statutory body and shall be required to submit evidence of registration as an approved supplier, contractor or consultant in Tanzania
     
  5. M

    Mama JF-Expert Member

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    Na bwana mrema hapa inabidi awajibike, au ndio atamsingizia mzee wa vijisent? Ingekuwa hekima kwa uongozi wa juu wa TANROADS kujiuzulu kwa kushindwa kutelekeza majukumu yao ipasavyo. Kwa heshima na taadhima bwana Mrema please onyesha kukomaa kwako kitaaluma na kimaadili ya uongozi, jiuzulu na wewe huna tofauti na mama Meghji.
     
  6. K

    Kudi Shauri Senior Member

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    Bwana Mrema kaanza kazi ya CEO wa TANROADS only in May 2007 na haya madudu yanaelekea yalianza toka 2002 or even before! Yule mghana aliyekuwa CEO kabla yake Dr. Abeid or something like that ndiye angetakiwa kuwajibika juu ya hili.

    .
     
  7. Mahesabu

    Mahesabu JF-Expert Member

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    TANROADS under dr. abeid and TANROADS under mrema which is better....?
     
  8. T

    Tuandamane JF-Expert Member

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    At last............. ushindi mwingine kwa JF
     
  9. M

    Mtanzania JF-Expert Member

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    Huyu Mrema leo ndio anaamka? Walikuwa wanatoa tender kwa watu wasio na usajili? Angekuwa mswahili, ni kutaka alete documents kibao zisizo na maana, kampuni ya Wazungu, wanalegea kirahisi.
     
  10. M

    Mama JF-Expert Member

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    wote wawili, ukikuta madudu ofisini kwako unashitaki, kama ndiye aliyefanikisha kuibua haya madudu, kudos bwana mrema, otherwise wote wawili na huyo Dr abeid wawajibike
     
  11. F

    Fundi Mchundo JF-Expert Member

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    Miaka mingi iliyopita, palitokea mradi wakupanua Hoteli ya New Afrika. Hoteli ilikuwa iongezewe iwe na ghorofa zaidi ya kumi, swimming pool n.k. Michoro ikatayarishwa, tenda zikaitwa, mkandarasi akapatikana na kukabidhiwa site. Jamaa akazungushie site mabati na kuanza kazi. Lahaula, wakuu wakagundua kuwa huyu mheshimiwa hajawa rejistad Tanzania (wakati ule kwa msajili wa makampini) bali Cayman Islands. Waziri akafoka, mkandarasi akaandikiwa barua ya kumtimua kwa kuwa hakuwa na stahili ya kufanya kazi Tanzania. Kufumba na kufumbua, mkandarasi akaenda mahakamani ambako ikatoka court injuction. Biashara yote kwenye site ikasimama wakati kesi inaamuliwa. Kesi ilinguruma kwa muda mrefu (zaidi ya miaka mitano ) hadi hapo mshitiri alipoomba kumaliza tatizo nje ya mahakama. Kutokana na kucheleweshwa kwa mradi, gharama zilikuwa zimeishapanda sana na kufanya zile ndoto za awali (maghorofa na swimming pool) kutoweza kutekelezwa. Mshitiri alikula hasara pia kuwa kwa wakati wote huo angeweza kukamilisha mradi, na kuanza kuingiza mapato. The moral of this story is; si kila wakati kukimbilia ku'terminate contract ni busara.'

    Hawa Norconsult waliishaanza kujikosha wenyewe (wao ndio waliogundua matatizo mengine ya kiutendaji na kuyaweka wazi), basi kwa nini wasiyamalize mambo kiungwana? Kwani kuna mahali Norad walidai kuwa walikuwa rejistad? Wao washitiri, walifanya jitihada gani kuhakikisha kuwa konsaltanti wao ametimiza vigezo vyote? Hao marejistra walifanya nini kumtahadhari mshitiri kuwa huyu konsaltanti hakuwa legal? Norconsult hakuwa anafanya kazi kwa kificho. Mabango yalikuwekoyakiainisha kuwa yeye ndiye msimamizi wa miradi. Kudaiwa na kodi kunahusiana nini na mradi? Naona wakuu wamekurupuka tena. Tuombee usalama.

    Amandla!
     
  12. O

    Ogah JF-Expert Member

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    Mkuu Fundi right on Top,

    ........Watakao suffer ni wananchi na miradi yao at the end, kama walivyokurupuka Wa-Norway.......naona naye Mrema kakurupuka.........

    Wa-Norway wakiamua kwenda mahakamani basi tena......nafikir Mrema kajianzishia safari yeye mwenyewe.....kulitia hasara Taifa

    Fundi.......kitu kingine kinachosumbua ni mafundi wenzako na hatima ya ajira yao......kweli inasikitisha
     
  13. M

    Mwikimbi JF-Expert Member

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    ukiangalia mikataba waliosaini na norconsult hao tanroads hakuna kipengele kinachotamka kuwa mkandarasi ni lazima awe amekuwa rejistrerd hapa tz. na pia kabla ya ku terminate mkataba wameenda kwa adjuau kwa arbitrator? utaona matokeo ya kukurupuka. huenda hii miradi ndo ikafa for good! ukifuatilia sana utakuta kuna mwanasiasa ameenda kule kumshinikinikiza mrema ate terminate hii miradi kwa kasi mpya, ari mpya, na nguvu mpyaaa.
     
  14. Kuhani

    Kuhani JF-Expert Member

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    Na wewe umekurupuka bila kupitia pitia thread kwa makini. Tena thread yenyewe fupi tu. Ni hiviiii:

    PUBLIC PROCUREMENT ACT 2004-21 Sect 46 (3)

    Qualifications of Suppliers, Contractors and Consultants

    Where as a result of the procurement proceedings, any foreign supplier, contractor or consultant is selected as having submitted the lowest evaluated responsive tender or the best ranked proposal, such a supplier, contractor or contractor shall register with the appropriate professional statutory body and shall be required to submit evidence of registration as an approved supplier, contractor or consultant in Tanzania
     
  15. Pundit

    Pundit JF-Expert Member

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    Labda swala muhimu ni kuwa Mwikimbi unaweza kutudokeza kuhusu hiyo mikataba na contents zake? Au unaweza kuimwaga hapa?

    Maana at this point siwezi kushangaa kama tuna mikataba ambayo haifuati hiyo Public Procurement Act.
     
  16. O

    Ogah JF-Expert Member

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    Kuhani labda pia utuelimishe...............katika hali ya oversight (from evaluation team)kama ilivyotokea na hadi Norconsult kuwa na binding Contract na serikali.......which one of this superceeds the other?.........who should be the victim then?......how do we validate the contract in the first place?

    What were the conditions of determination of Contract.......je Mrema amefuata determination procedure?........who instigated this whole issue/claim.

    .......kwa uzoefu wangu mdogo....hili gemu/mziki ni mzito na utaondoka na wengi......Mrema himself.........to start with.......mark my words
     
  17. F

    Fundi Mchundo JF-Expert Member

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    Mkuu, Ogah! Wala usiwe na wasiwasi na mafundi wenzangu. Si ajabu wengi wao wameisha jichukulia pensheni mapema!

    Mkuu, Kuhani! Si wajibu wa mkandarasi au konsaltanti kuthibitisha kuwa amesajiliwa au la. Wajibu wa kufanya hivi ni wa wale wanaompa tenda. Yeye, pamoja na instructions to tenderer, kudai apeleke hivyo vigezo anaweza kupuuzia na asipeleke. Wale wanaofanya evaluation ndio wanaopaswa kumtema kwa kutokuambatanisha ushahidi wa rejistresheni! Uamuzi wa kusimamia sheria au kuipuuzia ni wao na mshitiri ambaye wanamshauri nani apewe mradi. Kama kipengele ulichokiweka kinavyoweka bayana, ...shall be required......je, Norconsult aliombwa huo ushahidi (kimaandishi), akakataa? Kama hakuweka na hakuna aliyemdai aulete, nani wa kumlaumu? Mshitiri aliingiaje mkataba na kampuni iliyokaidi hoja halali kama hii? Katika evaluation, kitu cha kwanza kinachofanyika ni kuhakikisha kuwa documents zote zinazohitajika zimeambatanishwa. Hii mara nyingi ni pamoja na ushahidi kuwa amejiandikisha kama mlipa kodi. Kwa miradi mikubwa, ushahidi wa kuwa analipa V.A.T nao unahitajika. Asiyekuwa navyo, anatemwa mapema, hata kabla tenda yake haijafunguliwa. Makampuni yametemwa si kwa kutokuwa rejistad wenyewe bali hata kwa kutokuwa na wahandisi rejistad katika fani husika!

    Mshitiri akiamua kupuuza sheria yake mwenyewe kama tunavyosikia kwenye mikataba lukuki, hatuwezi kumlaumu anayetafuta kazi unless kuna hisia kuwa alimshawishi mshitiri afanye hivyo kinyume cha sheria. Pengine ndiyo hayo malipo yasiyoeleweka waliyoyastukia Norconsult makao makuu. Badala ya kushirikiana nao kujua kulikoni wanakimbilia ku'terminate'! Ati kwa vile alikuwa halipi kodi. Ebo, leo wamekuwa TRA?

    CYA tupu!
     
  18. Kuhani

    Kuhani JF-Expert Member

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    Fundi, unayonambia nimesha yasema nyuma:
     
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