Finance and Economic Affairs minister Mustafa Mkulo.
By Sylivester Ernest
The Citizen Reporter
Dar es Salaam. Treasury does not have funds to pay the Sh91 billion compensation that Tanzania Electric Supply Company (Tanesco) owes controversial private power firm Dowans, Finance and Economic Affairs minister Mustafa Mkulo said yesterday.
Mr Mkulo told The Citizen in a telephone interview from his Kilosa constituency that the matter was being handled by the Energy and Minerals ministry.
Mr Mkulo said the Finance ministry had no plans to include the compensation in the national budget.
I cant say more as Im on leave
however, that is their (Energy and Minerals) burden and they should find the means from their ministerial budget, he said.
The Citizen had sought to know whether the money would be set aside in the 2011/12 Budget to be tabled in Parliament in June or if Treasury has extra funds to settle such debts.
Meanwhile, former National Assembly Speaker Samuel Sitta, who now is the East African Cooperation minister, said the decision to pay Dowans had not gone through the Cabinet.
Mr Sitta said he would seek an explanation over the matter when the Cabinet convenes, adding that there were some unanswered questions.
Mr Sitta, who was the Speaker when a parliamentary committee investigated Dowans predecessor, Richmond Development Company, over the $172 million emergency power supply scandal, said it was painful to pay the amount.
The minister said he believed Mr Ngeleja and Attorney General Frederick Werema would have something to tell the Cabinet since all the announcements they were making had not been discussed by ministers.
They will have to tell us
t is very serious. We have not discussed the matter collectively and made a decision to pay up, he said, adding that he was commenting as a responsible citizen, knowing the issue was outside his docket.
Yesterday Mr Ngeleja could not be reached for reaction even as anti-corruption activists and other political leaders said they were surprised at the manner in which the Dowans saga was being handled within government.
In a swift reaction, Civic United Front (CUF) national chairman Prof Ibrahim Lipumba called on all involved government officials, irrespective of where they sit, to resign, saying they have insulted the intelligence of Tanzanians.
As far as I am concerned, the buck stops with the President
it is a pity that he is just sitting and watching this happen. Our beautiful country is now going like a rudderless ship, said Prof Lipumba.The renowned economist said the country had no such money to waste and that it would be a pity to pay it while it could have been spent on other developmental activities.
The executive director of Concern for Development Initiatives in Africa (FORDIA), Mr Bubelwa Kaiza, said the government would not escape blame despite releasing the names of Dowans owners.
The way this thing has been going leaves no doubt that some government officials are owners
.why were they quiet for that long? Why are they taking this matter so lightly? he queried. He said poor taxpayers would be overburdened with the debt.
The executive secretary of the non-governmental organization Agenda Participation 2000, Mr Moses Kulaba, said the naming of the owners of the company was pity and could not mean there were no shareholders of the company in the Tanzanian government.
Mr Ngeleja on Thursday announced that the government would pay the compensation as ordered by the international trade tribunal following a contractual dispute between Dowans whose contract was ended by Tanesco in 2008.