RAIS WA ZAMANI
IMETOLEWA NA THISDAY
Ex-president implicated in govt house sale scam
THISDAY REPORTER
Dar es Salaam
THE administration of former president Benjamin Mkapa has been put on the spot over revelations that it sanctioned the controversial sale of government houses to high ranking officials at grossly deflated prices, THISDAY can reveal.
Investigations by this paper have found that ex-president Mkapa personally expedited the sale of house No. 474 along Mindu Street in Upanga, Dar es Salaam to the then Minister of State in the Presidents Office responsible for Planning and Privatization , Dr Abdalah Kigoda, a transaction in which the government suffered a 123m/- loss.
The house, which previously belonged to the Tanzania Petroleum Development Corporation (TPDC), was acquired by the government at a cost of 190m/-. However, it has emerged that Dr Kigoda bought it for just 66.4m/-. This was after the government, through notice No. 7/201, ordered that the house be sold to a civil servant at book value.
A letter signed by former State House Chief Secretary Matern Lumbanga then directed that the house be sold to Dr Kigoda, apparently on direct orders from Mr Mkapa.
I am bringing you instructions from President Mkapa regarding house No. 474 Mindu Street, Dar es Salaam. The instructions are that this house should be sold to Dr Abdallah Omar Kigoda, Minister of State, Presidents Office, said part of the chief secretarys letter, which was addressed to the Treasury.
Documents show that in 2003, the house was valued at 93m/-, and a year later the government bought the same house for 190m/- before selling it for 66.4m/-. The explanation for the depreciation in price was a government directive that the house be sold at depreciated replacement value, that is, excluding the value of the plot.
The validity of the transaction has been questioned by the Controller and Audit Generals office and the issue is currently being investigated by the Parliamentary Public Accounts Committee (PAC), under the chairmanship of Bariadi East Member of Parliament, John Cheyo (UDP).
Contacted by THISDAY in the city yesterday, Cheyo confirmed that the committee was indeed investigating the sale of government houses. He however, declined to discuss details, claiming that the Kigoda house issue is still under scrutiny and further submissions are to be made in parliament early next year.
We are investigating this issue but it is not yet ready for public consumption. Its true that we have discussed that and other houses, but wait until we (committee) present our report to the National Assembly next year, said Cheyo.
During a recent parliamentary session in Dodoma, the Minister for Lands, Housing and Human Settlements Development, John Magufuli, defended the governments decision to sell its houses, strongly asserting that there were no plans to form a commission of inquiry into the controversial sales which continue to generate heated public debate.
Explained Magufuli: The sale of government houses started in 1963. It was repeated in 1973 and 1975. The need to sell government quarters usually arises when the costs of maintenance of the houses become unbearable. He was responding to a question raised by Bariadi East legislator , John Cheyo.
Nonetheless, current President Jakaya Kikwete has said the fourth phase government intends to review the government houses sale exercise with the aim of clearing shortcomings that have arisen during the implementation of the exercise todate.
He conceded that the exercise was not foolproof, and needed to be revised to plug existing loopholes.