Meremeta is outright theft - Zitto Kabwe
-Legislator points out that Bomani committee saw no 'military secrets' related to the deal
THISDAY REPORTER
Dodoma
KIGOMA North legislator Zitto Kabwe yesterday categorically declared that the controversial Meremeta gold company was a scam used to pilfer billions of shillings from government coffers, contrary to claims by Prime Minister Mizengo Pinda that the project was a classified military operation.
Kabwe, who is also the chairman of the parliamentary public corporation accounts committee, said it was a scandal for the government to maintain a cloak of secrecy over the Meremeta deal, which benefited from billions of shillings in dubious payments from the Bank of Tanzania (BoT).
''Meremeta is outright theft it has absolutely nothing to do with military or national security issues,'' the opposition CHADEMA party MP charged in the National Assembly yesterday.
He was in effect responding to controversial remarks by premier Pinda in parliament last week, that Meremeta was a classified military project and therefore should not be discussed in the House.
Kabwe was also a member of the mining sector review committee chaired by Judge Mark Bomani that recently presented its report findings to President Jakaya Kikwete.
He told the House yesterday that the committee, which also included representatives of the private sector, had full access to information on the now-defunct Meremeta company, and did not find anything to support claims by the PM that it was a classified military project.
The Kigoma North MP added that even if the project did involve any truly sensitive information, the matter should be sent to the parliamentary foreign affairs, defence and security committee for study.
According to recommendations contained in the Bomani committee report, the government should thoroughly investigate Meremeta and the subsequent TANGOLD Limited company, which inherited operations of the Meremeta company at the Buhemba gold mine in Mara Region after the company was declared bankrupt.
The investigation, said the report, should cover the formation of both companies and Meremeta's liquidation, as well as the extent of government ownership interest in both and ''the legality of the payment of $132m by the BoT to South Africa's Nedbank.''
''Based on the (BoT) governor's report, the central bank paid Nedbank a total of $132m, equivalent to 158bn/-, with regards to the Meremeta company. However, other reports suggest that the loan amount to be paid was just $104m,'' said the report.
The Bomani committee further said it had been unable to get proper explanations on the establishment, ownership and liquidation of the Meremeta company, and the eventual registration of TANGOLD outside the country.
It is understood that the formation of Meremeta Gold company had the strong backing of former president Benjamin Mkapa, whose government (and State House in particular) was seen to aggressively promote the company's gold mining activities in the Tembo area of Buhemba in Mara Region.
On the other hand, it has been established that TANGOLD - which was the beneficiary of a highly-questionable $13.34m (approx. 17bn/-) payment from the BoT - was registered as an offshore company in Port Louis, Mauritius in April 2005, just a few months before the Mkapa administration wound up its tenure.
At least five top government functionaries were listed as TANGOLD company directors at the time of its registration, including the then BoT governor Daudi Ballali and the then attorney general Andrew Chenge.
Others were the then permanent secretary in the Ministry of Finance, Gray Mgonja (who still retains the same position in the current government); the then permanent secretary in the Ministry of Energy and Minerals, Patrick Rutabanzibwa; and the then permanent secretary in the Ministry of Livestock Development, Vincent Mrisho.
Rutabanzibwa and Mrisho are now permanent secretaries in the Ministry of Water and the Prime Minister's Office, respectively, while Chenge later relinquished the AG post, entered politics, won a parliamentary seat, and was included in the fourth phase government of President Jakaya Kikwete, first as Minister of East African Cooperation and later as Minister for Infrastructure Development.
He was, however, forced to resign from his ministerial position in April this year after being implicated in the 70bn/- military radar scandal. As for Ballali, he was sacked from the central bank governorship by President Kikwete earlier this year, and is now reportedly deceased.
This means that of the five registered TANGOLD Limited directors, only Mgonja has remained in exactly the same position as at the time of registration in April 2005 (just over three years ago).
The BoT payment to TANGOLD followed another payment amounting to over $118m (approx. 150bn/-), ostensibly to liquidate a loan issued to the Meremeta company as part of its winding-up process.
Official records say that Meremeta was a joint venture project owned on a 50-50 basis by the Tanzanian government and a private South African firm going by the name of Triennex (Pty) Limited.
It has also been established that TANGOLD does not appear on the list of government-owned companies recorded with the Treasury registrar at the Ministry of Finance and Economic Affairs.
The supposedly government-owned company's official constitution includes provisions that give its five registered directors - namely Ballali, Chenge, Mgonja, Rutabanzibwa and Mrisho - the right to transfer their shares to family members.
According to a section in the TANGOLD Limited constitution directly pertaining to family transactions: ''Any share may be transferred by a shareholder to, or to trustees for, the spouse, father, mother, child, grandchild, son-in-law or daughter-in-law of that shareholder; and any share of a deceased shareholder may be transferred by his executors or administrators to the spouse, father, mother, child, grandchild, son-in-law or daughter-in-law of the deceased shareholder.''
Meanwhile, Kabwe also urged the government to review the Tanzania Intelligence and Security Service Act of 1996 to give the intelligence services a broader role in enhancing transparency and government accountability.
He told the House yesterday that the Tanzania Intelligence and Security Service (TISS) must be more involved in vetting major government contracts to defend national interests.