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Gaddafi never invested in Tanzania, says govt

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BabuK, Feb 4, 2012.

  1. BabuK

    BabuK JF-Expert Member

    Feb 4, 2012
    Joined: Jul 30, 2008
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    The government yesterday refuted allegations that it had investment links and a business relationship with late Libyan leader Muammar Gaddafi, stating that he had never invested in the country.

    A heated debate erupted yesterday during the question-and-answer session in the National Assembly over Tanzania's business relationship with the former Libya leader, with Kigoma-North legislator Zitto Kabwe saying that Gaddafi, as an individual, invested heavily in Tanzania.
    "The gener al feeling could be that Tanzania has the habit of having opportunistic diplomatic relationships," he said, explaining that it would associate with a person because of certain advantages or benefits from that person.
    In his supplementary question Zitto wanted to know the government position regarding invasion of the North Atlantic Treaty Orgnization (NATO) in Libya.
    But the government refuted Zitto allegations as lacking facts on the existing relationship between Tanzania and Libya.
    Minister of State in the Prime Minister's Office (Investment and Empowerment) Dr Mary Nagu clarified that Tanzania's relationship was with the Libya government and not Gaddafi as an individual.
    He emphasized that Tanzania had diplomatic relationships with many governments in Africa and across the globe and not the presidents of the respective countries.
    "It should also be understood that our country had no relationship with the late Gaddafi as an individual but as the head of state," said Nagu.
    Reacting to Zitto's claims on huge investments made by Gaddafi in Tanzania through the Libyan Arab African Investment Company (LAAICO), the minister stressed that Gaddafi had no investment in Tanzania.
    According to the MP, Libya, through LAAICO, has many investments in many African countries, including Tanzania.
    "Gaddafi has never invested in Tanzania," the minister clarified, noting: "Tanzania, as a member of the African Unity (AU), had relationship with the government of Libya…it was a country-to- country relationship," she stressed.
    In his basic question, Mbeya Urban legislator (Chadema) Joseph Mbilinyi said that the former Libyan leader invested heavily in Tanzania, but the minister insisted: "Gaddafi, as a person, had never invested in Tanzania."
    Records compiled by the Tanzania Investment centre (TIC), according to minister Nagu, show that the late Gaddafi had never invested in Tanzania, observing that TIC had registered only one Libyan company, namely North Africa Investment Trading Company.
    "This is a Libyan company…it was not the property of Gaddafi," explained the minister.
    The respective Libyan company invested in Bahari Beach Hotel Limited, which had three shareholders, namely Abdallah Hiblo who has 33.34 % shares, Mohamed Gmati (33.33%) and Mr Hussein Omrani (33.33%).
    "The Libyan company bought Bahari Beach hotel under the government's privatization arrangement which was being coordinated by the Presidential Parastatal Sector Reform Commission in 1998. The company invested about USD 5.8 million, and Tanzania benefited in terms of 160 jobs created for Tanzanians," noted the minister.