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Govt faulted on bulk oil import plans

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Rutashubanyuma, Dec 27, 2010.

  1. Rutashubanyuma

    Rutashubanyuma JF-Expert Member

    Dec 27, 2010
    Joined: Sep 24, 2010
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    Govt faulted on bulk oil import plans

    By Judica Tarimo

    24th December 2010

    Energy and Minerals Minister, William Ngeleja

    Newly announced bulk oil importation arrangement came under scathing attack yesterday, as experts and some public members say it could fuel grand corruption and high prices in the country’s petroleum industry.
    The reaction follows Wednesday’s announcement by the government that the tender for the planned bulk oil importation would not automatically go to the state-run TPDC.

    Energy and Minerals Minister, William Ngeleja said the tendering process for a company to import oil in bulk will be competitive involving both private and public oil companies.

    “TPDC will no longer import bulk oil as was the case previously. Instead the (tendering) process will be competitive and will involve both public and private oil companies,” he told reporters.

    However some experts and some legislators faulted the latest government arrangement, describing it as a brainchild of a syndicate and well-connected network of corrupt oil marketing investors who plan to sabotage one of the country’s most sensitive sectors.

    Dr Haji Semboja, an economist from the University of Dar es Salaam (UDSM) said there is a high likelihood that oil marketing companies will benefit more while the people are subjected to more suffering if a private investor wins the tender to import oil in bulk.

    He said the oil marketing industry in the world is managed by professional, intelligent and more experienced people than the regulator (Energy and Water Utilities Regulatory Authority-EWURA).

    “Even with the presence of the regulator, these people can still manipulate the rules of the game in order to generate super profits at the expense of millions of Tanzanians…they can form cartels, and do anything to benefit at the expense of Tanzanians,” said the don.

    He said that leaving the task of bulk oil importation in the hands of private players would have adverse and serious impact on the country — in terms of increased fuel prices, corruption in the sector and loss of government revenue.

    “There is even the possibility of this private (bulk importer) to collude with the regulator (EWURA) in manipulating prices and other importation rules for the benefit of a few people, leaving Tanzanians suffering,” said Semboja.

    The don suggested that the government “have its hand in the bulk importation process”, saying this could be done by empowering TPDC — in terms of human resources, finance and other capacity building elements — to handle the task.

    “The government must have its hand, either through TPDC or any other state-owned department, because private oil marketing companies the world over, are more shrewd than EWURA,” he noted, adding: “Even if the tendering process to pick the importer is competitive, they can still (oil marketing) manipulate the sector…these people talk the same language…this is their practice in many parts of the world.”

    He described the approach of picking private company to import bulk oil as government’s failure to invest and support development of the lucrative oil sector.

    Simanjiro MP, Ole Sendeka said assigning the task of importing oil in bulk to private company would create natural private-monopoly in the oil marketing industry.

    If not checked, he said, the trend would create what he termed “a group of few rich people…if left alone, private players can manipulate prices. In fact, safety and security of this country would be under threat,” said the outspoken legislator.

    However, EWURA Director General, Haruna Masebu argued that the new approach of picking the bulk importer would control corruption in the sector, dismissing the allegations that the move was a brainchild of corrupt oil markets and that it would fuel corruption and cartel practices.

    “I dismiss all allegations as untrue, because this new system would not allow corruption and other malpractices as they claim. Oil companies that wants get the tender would be subjected to international competitive bidding,” said Masebu.

    “On top of that, EWURA would still regulate operations of the bulk importer. There is no room for corruption or hiking of prices,” added.

    There was a heated debate in the 9th Parliament, as legislators pressed the government to entrust the state-run Tanzania Petroleum Development Corporation (TPDC) with task of importing petroleum products in bulk.

    According to the MPs, the move would help to avoid possible corruption and other malpractices including skyrocketing of fuel prices in the oil-marketing industry, if the bulk oil importation task would be given to private investors.

  2. Rutashubanyuma

    Rutashubanyuma JF-Expert Member

    Dec 27, 2010
    Joined: Sep 24, 2010
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    Huu ndiyo ukweli tangia lini monopoly ikapunguza bei..........bulky supply lengo lake ni kuua ushindani na atakayeumia ni mlaji na wala siyo vinginevyo.....................tutarajie bei kuanza mafuta ya aina zote mara mpango huu utakapoanza kutekelezwa..........................linalonishangaza ni kwa nini serikali haitaki hawa wa bulky supplies washindane na wawekezaji wadogo?

    kama kweli mtumiaji atanufaika ni dhahiri bulky suppliers hawana sababu ya kuua ushindani kwa kumfukuza mwekezaji mdogo kwenye sekta hii...........jibu ni rahisi ......kulea ufisadi tu..................haya "Maisha Bora kwa Kila Mtanzania" a mere campaign slogan haina maana yoyote ya kumsaidia Mtanzania..................