John Kachembeho
JF-Expert Member
- Dec 29, 2013
- 560
- 386
Ministrys contradictory versionIn another development, the ministry of Energy and Minerals issued two conflicting communications last week, in a bid to defend what transpired between IPTL, Tanesco and Pan Africa Power Solutions (PAP).
Last week, the director of Communication at the ministry, Ms Badra Masoud, issued a clarification advert after our sister paper, Mwananchi, published a story saying Tanesco was on the brink of bankrupt, following the judgment delivered by the Washington-based tribunal, International Centre for Settlement of Investment Disputes (ICSID) tribunal.
In the advert, the ministry says following the order by ICSID tribunal, Tanesco was in the process of initiating discussions with Standard Chartered Bank, Hong Kong (SCB-HK) to find an applicable formula to recalculate capacity charges as well as power tariff.
It is hence obvious that the government and Tanesco understand the involvement of SCB-HK in the multi-billion power deal that has made the headlines in the country for 19 years. The advert confirms that the government fully understands the jurisdiction of the ICSID tribunal.
But, on Friday, the minister for Energy and Minerals, Prof Sospeter Muhongo, posed a question to Mwananchi newspaper: Are we governed by US laws?
Prof Muhongo either believes ICSID operates according to US laws or has no jurisdiction over the government of Tanzania. The minister seemed to contradict an announcement from his ministry, which confirms and recognises the jurisdiction of ICSID tribunal.
Investigation by The Citizen has also established that on February 13, 2014, the permanent secretary in the ministry of Energy and Minerals, Mr Eliakim Maswi trashed SCB-HK demands, saying the bank wasnt party to the long-standing dispute between IPTL and Tanesco.
In his later dated February 13, this year with reference number CBD.88/417/01/25, directed to Mr Joseph Casson of SCB-HK, Mr Maswi writes: We have carefully studied the contents of the letters it surprises to see that the SCB-HK, which neither a party to the Power Purchase Agreement (PPA) nor to the Implementation Agreement (IA) alleges the breach by the government of Tanzania or Tanesco.
Mr Maswi further writes: The GOT believes that SCB (HK) is quite aware that it lacks locus standi to claim, pursue, and or require a part or parties to the said agreement to undertake any associated requirements as it is not a party to the agreements.
The letter, which was also copied to AG concludes: In view of the above, the GoT does not see a necessity to meet and discuss any steps in relation to the alleged defaults for mitigation purposes and its subsequently discourages SCB (HK) from raising any matter against the GOT in relation to the PPA and IA.
It is not clear why Mr Maswi chose to respond to a letter that was directly directed to Tanesco and simply copied to the ministry of Energy and Minerals.
But as both the minister and permanent secretary claim that SCB-HK is not an interested party to the IPTL-Tanesco dispute, the statement from the same ministry and available documents obtained by The Citizen proves the opposite.
Last week, the director of Communication at the ministry, Ms Badra Masoud, issued a clarification advert after our sister paper, Mwananchi, published a story saying Tanesco was on the brink of bankrupt, following the judgment delivered by the Washington-based tribunal, International Centre for Settlement of Investment Disputes (ICSID) tribunal.
In the advert, the ministry says following the order by ICSID tribunal, Tanesco was in the process of initiating discussions with Standard Chartered Bank, Hong Kong (SCB-HK) to find an applicable formula to recalculate capacity charges as well as power tariff.
It is hence obvious that the government and Tanesco understand the involvement of SCB-HK in the multi-billion power deal that has made the headlines in the country for 19 years. The advert confirms that the government fully understands the jurisdiction of the ICSID tribunal.
But, on Friday, the minister for Energy and Minerals, Prof Sospeter Muhongo, posed a question to Mwananchi newspaper: Are we governed by US laws?
Prof Muhongo either believes ICSID operates according to US laws or has no jurisdiction over the government of Tanzania. The minister seemed to contradict an announcement from his ministry, which confirms and recognises the jurisdiction of ICSID tribunal.
Investigation by The Citizen has also established that on February 13, 2014, the permanent secretary in the ministry of Energy and Minerals, Mr Eliakim Maswi trashed SCB-HK demands, saying the bank wasnt party to the long-standing dispute between IPTL and Tanesco.
In his later dated February 13, this year with reference number CBD.88/417/01/25, directed to Mr Joseph Casson of SCB-HK, Mr Maswi writes: We have carefully studied the contents of the letters it surprises to see that the SCB-HK, which neither a party to the Power Purchase Agreement (PPA) nor to the Implementation Agreement (IA) alleges the breach by the government of Tanzania or Tanesco.
Mr Maswi further writes: The GOT believes that SCB (HK) is quite aware that it lacks locus standi to claim, pursue, and or require a part or parties to the said agreement to undertake any associated requirements as it is not a party to the agreements.
The letter, which was also copied to AG concludes: In view of the above, the GoT does not see a necessity to meet and discuss any steps in relation to the alleged defaults for mitigation purposes and its subsequently discourages SCB (HK) from raising any matter against the GOT in relation to the PPA and IA.
It is not clear why Mr Maswi chose to respond to a letter that was directly directed to Tanesco and simply copied to the ministry of Energy and Minerals.
But as both the minister and permanent secretary claim that SCB-HK is not an interested party to the IPTL-Tanesco dispute, the statement from the same ministry and available documents obtained by The Citizen proves the opposite.