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A Clean Public Contract Here - You're Joking!

Discussion in 'Jukwaa la Siasa' started by Invisible, Sep 2, 2009.

  1. Invisible

    Invisible Admin Staff Member

    Sep 2, 2009
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    By Karl Lyimo

    ONE OF THE LEAD STORIES in The EastAfrican in the past three months was about gross irregularities in procurement contracts by institutions under the Tanzania Ministry of Natural Resources and Tourism and two foreign public firms.

    According to the Controller and Auditor-General, the procurement of advertising services from the US-based Cable News Network (CNN) and Jambo Publications of London did not follow statutory procedures.

    For instance, two CNN contracts, totalling $1.55 million did not only fail to comply with procurement procedures but they also fell short of pertinent details -- such as the timing, duration, length, frequency and monitoring methodologies of the broadcasts contracted for.

    The Jambo contracts, worth $272,000 over six months, also left much to be desired. Basic details were scanty - with vital documents unavailable for auditing. Suffice it here to cite the auditor's remark that "there was no value for money" in the transactions.

    In "Canadian firm pulls out of $5 million TTCL contract" (The EastAfrican, July 6-12), it was reported that SaskTel prematurely opted out of the 3-year, deal.

    THE REASON FOR WITHDRAWING must surely be rooted in a fundamentally-flawed original contract. Reputable firms that fight tooth-and-nail and win lucrative deals abroad do not give up simply out of homesickness or charity.

    Indeed, there have been other reports after those two -- and more should continue to be published with the passage of time.

    The general consensus is it is easier to find a needle in a haystack than unearth a bona fide, sleaze-free public contract in Tanzania. The architect of Tanzanian nationalism the late Mwalimu Julius Nyerere, succinctly painted a picture of the negative effects of graft in the country -- comparing it with Kenya and India.

    Corrupt officials in the latter two cream their 10 per cent off the top of the value but also ensure the project is completed as per contract. Not so in Tanzania, Mwalimu lamented, where the officials take their cut -- and head for the hills.

    In the event, the job is not completed, or is shoddily wound up by the contractors in efforts to salvage their costs and profits.

    That is bad enough. Worse and inexcusable is that not a single principal official in the development-planning and decision-making stakes regarding public procurement has ever been successfully brought to account for his or her misdeeds.

    Not only has justice not been seen to be done; it has never been done at all.

    While clerks and other junior officials are routinely arraigned in court when caught with their hands in the till, top decision-making officials who are the principals behind such corrupt contracts are untouchable beyond belief.

    Hence all those dubious deals in public procurement -- ranging from power purchase agreements to infrastructural development -- as well as deals in privatisation and investments in such lucrative sectors as mining and other natural resources.

    The rot is routinely exposed by CAG, Parliament and other probe commissions -- and just as routinely swept under the rug by the government. No wonder the Tanzania economy is being systemically ravaged by such dubious public deals.

    Karl Lyimo is a freelance journalist based in Dar.
  2. O

    Ogah JF-Expert Member

    Sep 2, 2009
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    Duuhh, nazidi kukata tamaa, utafikiri nchi haina wenyewe!!!!
  3. Invisible

    Invisible Admin Staff Member

    Sep 2, 2009
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    Mkuu Ogah,

    Nchi ina wenyewe na wenyewe ndio sisi, na ndo tunajitahidi kila tunaposhtukia deal chafu tunawafahamisha kuwa "tushashtukia..."
  4. Dark City

    Dark City JF-Expert Member

    Sep 2, 2009
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    Safi sana mkuu. Ila si unajua kuwa akikamatwa mwizi mmoja basi kuna zaidi ya 99 wametuingiza mjini? Hapo ndiyo kazi inapokuwa pevu!!
  5. Chapakazi

    Chapakazi JF-Expert Member

    Sep 3, 2009
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    Ndo maana tunaipenda JF. We are in this together...for better or worse...till death@!
  6. Invisible

    Invisible Admin Staff Member

    Sep 7, 2009
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    By Cap. George Mkuchika,

    I am writing to formally address the misrepresentation and distortion of the Tanzania government's policy on liberalisation of the economy in The EastAfrican.

    In the issue of July 27-August 2, your columnist Karl Lyimo claimed that Tanzania has embarked on the road of what he refers to as "reverse privatisation."

    He said the government was taking back what was once its own before denationalising.

    Lyimo cited three examples as proof of this supposed reversal of government policy. The first one was that of the Tanzania Telecommunications Company (TTCL) where the Canadian company Sask Tel decided to cancel its lease contract ahead of time.

    The second related to the power utility company, Tanesco, where a South African company called Net Group Solutions (NGS) had its management contract cancelled.

    And, finally, the third was the case of the Dar es Salaam Water and Sewerage Authority (Dawasa), where a lease contract granted to City Water Services was cancelled by the government. Lyimo claimed that the three companies were in effect renationalised.

    This is a gross misrepresentation of facts. In none of the three cases does the issue of renationalisation arise. Tanesco and Dawasa have been 100 per cent state-owned before, during and after the management and lease contracts with Net Group Solutions and City Water Services respectively.

    TTCL was and still remains 65 per cent state owned, with 35 per cent owned by the Celtel Company, now Zain.

    THE CONTRACTS OF THE THREE COMpanies -- Net Group Solutions, City Water Services and Sask Tel -- were for provision of management services for specific periods of time and for specific goals.

    They were not, in any way, contracts for ownership. Therefore, to refer to the cancellation or non-renewal of contract as renationalisation is preposterous.

    Let me expand on the history here. In 2002, South Africa's Net Group Solutions was contracted to provide management services to the state power utility enterprise, Tanesco. The company executed two contracts of two years each.

    The first contract expired on April 30, 2004 and the second on December 31, 2006. On expiration of the second contract, the government and the board of directors of Tanesco made two important decisions.

    The first was not to renew the NGS contract. The second was not to continue with the system of hiring a private company to provide management services. It was decided, instead, to employ people with the requisite qualifications on an individual basis from within Tanzania and outside the country to man managerial positions in the company.

    It was on this basis that Dr Idris Rashid, a Tanzanian and former governor of the Bank of Tanzania, was appointed chief executive officer of Tanesco along with some other managers. Indeed, during the process of recruitment, some people who had worked with Net Group Solutions were among those considered.

    In the case of Dawasa, the water utility company entered into a lease contract with City Water Services on February 29, 2003, with the contract taking effect on August 1 the same year.

    Under the contract, City Water was tasked to manage the company and provide affordable water services efficiently for Dar es Salaam and its surrounding areas. When it was found that the company could not deliver in accordance with the contract, it was terminated by the government on May 31, 2005.

    City Water contested the decision and took the matter to the United Nations Commission on International Trade Law (Uncitral) tribunal in a case instituted against Dawasa and heard in London.

    It lost the case, and on December 31, 2007, was ordered to pay Dawasa an award of $6 million as well as bear the latter's legal costs.

    That was not the end of the matter, however. On August 2, 2005, Bi-water Gauff (Tanzania) Ltd, one of City Water's shareholders, took the matter to an institution of the World Bank, the International Centre for Settlement of Investment Disputes (ICSID) in The Hague for arbitration.

    Again, they lost. In its determination on July 24, 2008, ICSID ruled in favour of the government.

    THE TWO JUDGMENTS BY TWO DIFF-erent and respected international tribunals in favour of the government of Tanzania show that the termination of the lease contract was in order and justified.

    It is unfair, therefore, to characterise the government's action as a move to de-privatise the delivery of water supply and sewerage services in Dar es Salaam and surrounding areas. Let me repeat:. Dawasa was never privatised at all.

    As with Tanesco, after the exit of City Water Services, the new managers of Dawasa were outsourced on individual merit. Alex Kaaya was hired as the managing director and several other persons were employed in other managerial positions.

    In the third case, the government of Tanzania and SaskTel International of Canada signed a three-year management agreement on May 3, 2007. Under the agreement, Sask Tel was to provide management services to TTCL from July 1, 2007 to June 30, 2010.

    The two parties, however, agreed amicably to terminate that contract on July 12, 2009 following a request for termination by Sask Tel International.

    FOLLOWING THE TERMINATION OF the contract, the TTCL board of directors has put in place an all-Tanzanian interim management team, headed by acting chief executive officer Said A. Said.

    Arrangements are underway to source a permanent management team either from within Tanzania or from outside the country. The board will decide on whether to hire a company or appoint persons on the basis of individual merit to manage the company.

    Again, the termination of the TTCL management contract with Sask Tel has nothing to do with a reversal of policy on the part of the government.

    It was a decision taken by Sask Tel on its own volition. As I mentioned earlier, TTCL had already been divested; as a result, the ownership structure was 65 per cent government and 35 per cent privately held by Zain. This remained the same before and after the Sask Tel contract.

    The truth is that the government of Tanzania remains committed to economic reforms underpinned by the divestiture of state enterprises. We have privatised most state-owned enterprises as a result of this policy. Only a few remain, most of them public utilities.

    So far, government efforts are focused on dealing with the management problems of these enterprises. What was done with Tanesco, Dawasa and TTCL is practical implementation of this policy tenet.

    Capt George Mkuchika is Tanzania's Minister of Information, Culture and Sports

  7. K

    Kwame Nkrumah JF-Expert Member

    Sep 7, 2009
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    Mwanzo mzuri Capt. Haujaongea cha maana lakini atleast someone amejitokeza na kujibu. This is so unusual in Tanzania. Fikiria kila kero ingekuwa inajibiwa hivi, tena kwa haraka, nchi hii ingekuwa lulu ya Afrika !! Naona wale wote wenye kero labda tuzipeleke THE EAST AFRICAN zitajibiwa.
  8. Semilong

    Semilong JF-Expert Member

    Sep 7, 2009
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    wanapenda kujibu hiyo contract ya dawasa na ya tanesco kwa ajili hizo kampuni ziliboronga kwa hiyo ni raisi wa kuzishambulia lakini wao walipoboronga hawezi kuja kujibu mtu
  9. M

    Magezi JF-Expert Member

    Sep 7, 2009
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    Wizi mtupu
  10. Invisible

    Invisible Admin Staff Member

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    Ukiona mtu anajikuna ujue kaguswa au kuwashwa!

    Responses za namna hii natamani zingekuwa zinatolewa kwenye allegations kibao nchini, tungefika mbali sana
  11. Lunyungu

    Lunyungu JF-Expert Member

    Sep 7, 2009
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    Pesa hiyo ya matangazo ndiyo imempa Juma Pinto ulaji mkubwa na sasa kaanza kazi ya kulipa fadhila. Soon mtaona mambo yake maana kachukua mkwanja kaja Tanzania kaanzisha gazeti lile lile la London sasa liko Dar linaitwa Jambo nadhani liko mitaani ama soon utaliona. Pinto pia ni mwana CCM London na mwandishi wa mambo mazuri ya Ubalozi wetu. Deal ile imeenda kiajabu sana ukiujua ukweli utalia. Pinto huyo sasa kumuona Dar lazima upige hesabu hehehe serikali yetu bwana.Na Watalii wenyewe toka UK hakuna kituo.

    Ujinga mtu kutangaza kwa gharama kubwa na bado tunawaacha wazungu wanauza safari wakiwa kwao na hotels kila kitu kwao, kodi hailipwi serikali wanaweka vi branch Tanzania kwa kuwatumia waswahili na wanawapa karanga waka si malipo. Tanzania inakosa pesa yote inabakia Ulaya na still serikali inasema biashara huria. Jaribu kufanya hayo kwao uone kama utafika mahali. Nashangaa sana TTB na Wizara kwa kituko hicho.
  12. carmel

    carmel JF-Expert Member

    Sep 8, 2009
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    Nchi ishauzwa hii kaka, kama hujapewa share yako, kadai sasa!
  13. M

    Mugerezi JF-Expert Member

    Sep 8, 2009
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    Balaaaa nchi imetekwa nyara....
  14. Paka_Shume

    Paka_Shume Member

    Sep 10, 2009
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    Tanzania: You Can't Take Back What You Never Gave Away
    Last edited by a moderator: Sep 10, 2009
  15. Invisible

    Invisible Admin Staff Member

    Sep 10, 2009
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    Mkuu hoja ilikuwepo hivyo nime-edit ya kwako na kuziunganisha.

    Thanks mkuu