[h=1]UK envoy speaks out on IPTL $122m controversy[/h]
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British High Commissioner to Tanzania, Dianna Patricia Melrose speaks at Mwananchi Communications Ltd (MCL) office which is located at Tabata Relini in Dar es Salaam yesterday. PHOTO|SALIM SHAO
By Florence Mugarula ,The Citizen Reporter
Posted Wednesday, May 7 2014 at 00:00
In Summary
- Ms Dianna Melrose commends the decision by the Public Accounts Committee and Controller and Auditor General to investigate the Sh198.25 billion transaction saga
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Dar es Salaam. The United Kingdom and other development partners are concerned about the controversy surrounding the acquisition of Independent Power Tanzania Limited (IPTL), the UK's high commissioner to Tanzania said yesterday.
Ms Dianna Melrose commended the decision by the Public Accounts Committee (PAC) and Controller and Auditor General (CAG) to investigate the $122 million (Sh198.25 billion) transaction saga.
She also confirmed that she wrote to the Bank of Tanzania (BoT) governor, Prof Benno Ndulu, seeking to know on what grounds were the escrow billions released to Pan African Power (PAP) Solutions Limited while the main case was still pending before an international tribunal.
The UK envoy was speaking during a visit to the Mwananchi Communications Limted (MCL) head offices.
She said the IPTL issue was of "great concern" to the British government, adding that the high commission hadalready communicated with the relevant ministers in addition to writing to the BoT governor.
"We wrote to the BoT governor asking for elaboration after learning something about the escrow account," Ms Melrose said.
According to the envoy, the UK government was pleased that the matter was now being investigated and that there would be a comprehensive report on what really transpired.
"Let's wait for the results and see what really happened," she said.
However, Ms Melrose said the donor community was closely monitoring the unfolding scandal, adding that the UK had reason to be concerned as it was planning to provide £71 million (Sh177 billion) for Tanzania's energy sector in the next financial year. "The UK alone looks forward to providing £ 71 million to the energy sector in the next budget, so it is a concern for us when it comes to the IPTL issue," she said.
PAC in March ordered an audit to establish how PAP was paid billions of shillings from an escrow account after the company claimed it first bought 70 per cent of Malaysian firm Mechmar for an undisclosed amount and then acquired 30 per cent of VIP Engineering and Marketing for $67.5 million (Sh109.14 billion).
In terms of reference revised by the CAG and endorsed by PAC last week, the parliamentary oversight committee, among other things, directed that an investigation be carried out to establish whether the acquisition of the 70 per cent stake in IPTL was legal.
The CAG will also investigate the circumstances that allowed IPTL, which was under liquidation, to sell the stake to a new investor in 2010 as claimed by PAP executive chairman Harbinder Singh Sethi.
