Meremeta: Was PM misled?
THE ART OF DECEPTION Prime Minister Pinda is at loggerheads with Slaa over the true nature of payments made by the government to the dubious Meremeta company.
THISDAY REPORTER
Dar es Salaam
PRIME Minister Mizengo Pinda may have been deliberately misled by his top aides to try to silence Members of Parliament in the National Assembly from questioning dubious payments made by the Bank of Tanzania (BoT) to the Meremeta company.
Insiders say the PM was falsely assured by some senior government aides that operations of the now defunct Meremeta company and the subsequent TANGOLD and Deep Green Finance companies were linked to national security and defence issues.
Pinda controversially used the 'classified military information' shield in Parliament recently to block questions from opposition MPs on the nature of dubious payments from BoT worth hundreds of billions of shillings to Meremeta, TANGOLD and Deep Green Finance Ltd.
The current Permanent Secretary in the Prime Minister's Office (PMO), Vincent Mrisho, is one of the shareholders of the TANGOLD company along with other prominent politicians and senior government officials.
It is understood that Mrisho became one of the directors of TANGOLD in 2005 while serving as the PS of the Ministry of Defence and National Service.
The Deputy Leader of the Official Opposition in the National Assembly, Dr Wilbrod Slaa, told THISDAY that he believes the PM was deliberately misled by his top aides over the Meremeta issue.
The Karatu MP along with the Bariadi East lawmaker, John Cheyo (UDP), and the Kigoma North legislator, Zitto Kabwe, have strongly rebuffed Pinda's remarks in the National Assembly suggesting that Meremeta was a classified military project.
The prime minister was deceived ... Meremeta was run by foreigners, how can he now claim it was a secret military project?" Slaa said yesterday in an interview.
He warned that neither MPs nor Tanzanians at large would accept any attempts by government officials to hide the real truth on the dubious payments to the company.
Slaa insisted that Meremeta was run by a ''bunch of foreigners'' who received billions of shillings from government coffers under questionable circumstances.
According to government officials, the Meremeta company was set up specifically to engage in gold mining activities at the Buhemba mine in Mara Region and purchase gold from artisanal miners.
Just before the company went bankrupt, the then Minister for Defence and National Service, Prof. Philemon Sarungi, announced in his 2005/06 budget speech in the National Assembly that the Buhemba Gold Mine was doing brisk business.
According to Sarungi, the mine had by June 2005 produced 7,185.88 kilogrammes of gold worth around $77.725m (approx. 90bn/-).
Meremeta was registered in the UK in April 1997 and officially began extracting gold from the Buhemba mine in February 2003.
The company was formed on a 50-50 joint venture basis by the Tanzanian government and Triennex (PTY) Limited - a private firm headquartered in South Africa.
Just two years after Meremeta began producing gold, it was liquidated and the government announced that another company (TANGOLD) had taken over the assets of Meremeta, including the Buhemba mine.
As part of Meremeta's liquidation, the BoT paid a whopping $118m (approx. 150bn/-) to Nedcor Trade Services Limited of South Africa to offset a loan given to Meremeta.
The BoT raised the funds to pay off the loan to Meremeta through a 155bn/- Treasury bond, effectively raising serious audit queries in the process.
It has also been established that the BoT paid another $13.34m (approx. 17bn/-) to TANGOLD through an account at the National Bank of Commerce Limited's Corporate Branch in Dar es Salaam.
A little-known company, Deep Green Finance Ltd, eventually came into the picture and started receiving billions of shillings from BoT and TANGOLD before it also quickly and quietly filed for bankruptcy.
At the time of its registration in Mauritius in April 2005 as an offshore company, other shareholders of TANGOLD were former BoT governor Daudi Ballali (now deceased); the then Minister for East African Cooperation, Andrew Chenge; the Permanent Secretary in the Ministry of Finance, Gray Mgonja; the then PS in the Ministry of Energy and Minerals, Patrick Rutabanzibwa; and Mrisho.
While the Ministry of Energy and Minerals has claimed in Parliament that TANGOLD is 100% owned by the government, the company's articles of association have provisions that allow the listed shareholders to transfer all or part of their shares to their family members.
Furthermore, TANGOLD is also not officially listed at the Treasury Registry among companies partly or wholly-owned by the government, and has thus not been subjected to statutory auditing by the Controller and Auditor General (CAG).
Parliamentary sources say queries on Meremeta and TANGOLD will not easily disappear in the National Assembly, with the incumbent Minister for Energy and Minerals, William Ngeleja, expected to field some more difficult questions from lawmakers on the thorny subject when he tables his ministry's 2008/09 budget proposals.