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After Dowans, MPs Now Eye Pan African Energy

Discussion in 'Jukwaa la Siasa' started by nngu007, Nov 20, 2011.

  1. nngu007

    nngu007 JF-Expert Member

    Nov 20, 2011
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    Sun, Nov 20th, 2011| Tanzania


    Bumbuli Member of Parliament January Makamba

    Alarmed by the contents of the Parliamentary report tabled on Friday this week, which nailed the Pan African energy, legislators now want the multibillion shillings gas contract to be terminated.

    Their call comes as the country still struggles with the $65 million (Sh110billion) award granted by the International Chamber of Commerce (ICIC) to Dowans
    Tanzania Ltd, after the government terminated a power deal contract in a bid to implement the Parliamentary recommendations issued in February, 2008.

    Contributing to the report, which was tabled in the House on Friday evening by Chairman of the Parliamentary watchdog committee on Energy and Minerals January Makamba, the MPs described the contract as dubious because it paved the way for a foreign company to ‘plunder' the country's gas resources.

    However some MPs mainly from the ruling party took a different stand, saying the biggest obstacle wasn't the Minister tasked to oversee the ministry, but the current system that produce incompetent technocrats who don't know how to negotiate the best deal for their country.

    He suggested that the gas contract should be reviewed or terminated for lack of transparency in the whole process of how the investor was selected. The responsible Minister according to the email met with Pan African officials, promising them that even the committee's final advice would not have any impact to their business, the MP claimed.

    "These investors have the guts to spread documented conversations made privately with the Head of State…. It is obvious that the top government officials have assured the investor (Pan African Energy) that the company will not be touched," he noted.

    Mkanyageni legislator Eng Habib Mnyaa (CUF) cautioned the government to act carefully when dealing with foreign investors especially in the mineral sector, saying some of them were international crooks.

    According to Eng Mnyaa, the government has been failing to implement the recommendations recommended by its Parliamentary committees, wondering why the Tanecso was using the same law firm, which also represents Songas and Pan African.

    "We cannot tolerate this…we want them to be accountable for the loss of Sh110bn… they have made. But this should be a lesson to us, next time such big projects should be given to investors after the government has completed construction of infrastructures," said Eng Mnyaa.

    Muleba North MP Charles Mwijage (CCM) said the government was rushing to implement gas projects, even though the country lacked laws governing such implementation.

    "I am ready to die for my country…we have left the door open and so we don't have a reason to complain over theft," he said, querying why was the Pan African and Songas should ask to be sole operators in the gas business.

    However, currently, the government irked by the ongoing power rationing and the high cost of thermo electricity, has secured $1 billion from China in order to establish a modern gas infrastructure, a move that would reduce the cost of producing electricity by 40percent.

    Ubungo MP John Mnyika (Chadema) advised the government to terminate the contract, urging leaders responsible to be held accountable, while the minister for the Energy Minister Ngeleja to resign and the contract should be revoked.

    But, like his fellow politicians, Mnyika didn't make it clear about who will pay the legal cost resulting from the proposed termination of Pan African Energy's contract with TPDC.

    He said according a report from the Action Aid of Sweden (SIDA), Pan Africa have avoided paying taxes amounting to Sh96.5bn. Myika said the only law that people can respect and avoid to violate is their faith and sincerity. He however said there are so many scandals being left behind in the report. Debating the report, Special Seats legislator, Eng Stella Manyanya, (CCM) urged her fellow MPs to go beyond the politics of witch-hunting by addressing the biggest problem that faces the government when it comes to negotiating international contracts.

    According to Engineer Manyanya, calling for the resignation of the Minister responsible for minerals and energy was unfair, because the dubious contract was signed in 2004, when he wasn't even the Member of Parliament.

    She advised that before any termination was considered, credible independent lawyers should be hired to review the document and come up with the best solution.

    Nzega MP, Dr Hamis Kigwangala said the investor should repay the Sh46bn he obtain "through forgery" within ten days, adding that there should be no mercy in dealing with this kind of investors.

    Speaking emotionally, Dr Kigwangala told the Parliament that the amount of money stashed away was enough to pay tuition fees for 100,000 students at universities for one semester. State Minister, Prime Minister's Office (Policy and Parliament Coordination) William Lukuvi admitted to have received the committee report. He said the report was well written and that the government will work on all the 26 recommendations.

    Lukuvi appealed to the MPs to give enough time for the government to implement the recommendations and present their report in the next parliamentary meeting scheduled for February 2012.

    He, however, said the Pan Africa Energy email that was circulated to the MPs doesn't belong to the government. He said the government doesn't recognise the email because it wasn't brought through the parliamentary committee.

    Meanwhile, the Chairman of the Parliamentary Committee on Energy and Minerals, January Makamba advised the government to make sure that it tables before the Parliament the National Gas Bill.

    He said it was unfair for a country with abundant gas reserves to lack such a special law that regulates the exploration and mining of natural gas.

    According to Makamba Tanesco owns 9 percent of shares while TPDC has 29 percent shares.

    Makamba said the investor has managed to fool the government through the contract by inserting the clause, which states clearly that dividends would first be paid to the majority shareholder, once the company starts generating profit.

    He said the bad thing is that the investor embarked on project expansion without notifying Tanesco and TPDC. He said that Pan African and Songas would wish to invest an extra $120 million for expansion, and have already requested for a bank loan which has high interest rates.

    He said the 20 years project which is expected to end by 2024 is now implemented by the investor through government grant worth $200 million that was borrowed from the World Bank.

    "The parliament should come up with a strategy to ensure no mess is done in the minerals sector…. We are rich in natural resources but yet we cannot benefit from it.

    We shouldn't be among the African countries that stared gas extractions some decades ago, but they are in extremely poverty", he said.

    Makamba cautioned the government to make sure that it is well prepared institutionally and professionally before it embarks on minerals deals.

    However it's not clear which measures Makamba was referring to because just last year, the very same parliament passed the Mining Act of 2010, which was a replacement of the 1997 law that warranted the plunder of the country's mineral resources.

    By Felister Peter, The Guardian

  2. BAK

    BAK JF-Expert Member

    Nov 20, 2011
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    Mie nilishasema hapa haya makampuni yote yaliyoingia nchini kwa kivuli cha "uwekezaji" ni matapeli tu watafanya kila wawezalo kutuibia kadiri watakavyoweza. Miaka ya nyuma tulikuwa na TANESCO tu ambayo iliweza kukidhi mahitaji ya umeme wa nchi na bado nina amini kabisa kama hao wanaojiita viongozi wangekuwa na vision ya mbali basi huu utitiri wa makampuni yanayofua umeme kwa kutumia gas yetu (akina symbion, PAT, etc) na yale yanayotumia mafuta kama vile IPTL yasingestahili kuwepo nchini na kazi hii ingeweza kabisa kufanywa na TPDC tena kwa gharama ndogo sana na pia kwa ufanisi mkubwa na hivyo kupunguza gharama za TANESCO na pia gharama za watumiaji umeme ambazo sasa hivi zinazidi kupaa katika kiwango cha kutisha. Kama si kukurupuka kwa hawa waliopewa madaraka na Watanzania basi umeme wetu ungekuwa bado ni wa bei poa lakini kwa mwendo huu miaka michache ijayo wengi hawatamudu gharama kubwa za kuwa na umeme.

    Kama una uwezo anza kujizatiti sasa ili uangalie uwezekano wa kutumia solar power na hivyo kuachana na TANESCO.
  3. nngu007

    nngu007 JF-Expert Member

    Nov 20, 2011
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    Lazima hawa wawekezaji waliketwa kwa Migongo ya Mafisadi wetu; Ni lini kutakuwa na sheria ya nchi ya kuwaumbua hawa watu

    Transparency Policies to get ride of greedy ones and if possible the courts take over
  4. TzPride

    TzPride JF-Expert Member

    Nov 21, 2011
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    Naombeni mwenye copy ya hiyo report aiweke hapa tuisome wakuu.