Mkapa connection with Kiwira coal mine: The real facts
THISDAY REPORTER
Dar es Salaam
FORMER President Benjamin Mkapa and Cabinet minister Daniel Yona formed the private company Tanpower Resources Limited in 2004 with the specific intention of engaging in coal mining and power generation activities, according to available documentary evidence.
This is contrary to new reports claiming that Mkapa withdrew from the company after it acquired the previously state-owned Kiwira coal mine in Mbeya Region, and as such has never been an owner of the Kiwira mine.
The claim was attributed to the chief executive officer of the now-renamed Kiwira Coal and Power Limited, Francis Tabaro, in an interview this week with sections of the local press.
According to the memorandum of understanding and articles of association of Tanpower Resources Limited, the company was registered specifically to ''deal with coal mining in order to generate electricity for consumption and sale; to generate power generators, transmitters and general distributors; and to provide power and general projects management, project appraisers and consultants'', among other things.
THISDAY investigations have already established that the company was jointly registered in December 2004 by Mkapa and Yona � while still serving as president and minister for energy and minerals, respectively - with various close relatives including wives, children and in-laws in tandem.
At the time of its registration, the first listed directors of Tanpower Resources were the then first lady Mrs Anna Mkapa; Yona himself; Nicholas Mkapa (the then president and first lady's son); Joseph Mbuna (Nicholas Mkapa's father-in-law); and one Evans Mapundi.
It has also been established that in the early stages of the Kiwira coal mine privatization, Mkapa was still listed as a shareholder of Tanpower Resources through ANBEM Limited, the private company that he formed in 1999 with former first lady Anna Mkapa while still at State House.
Official records at the Business Registration and Licensing Authority (BRELA) show that Tanpower Resources began official correspondences with the government even before the company was officially registered.
Records also show that Tanpower Resources announced to the government that it was interested in buying the Kiwira coal mine through written correspondence dated December 15, 2004 � a good two weeks before the company was actually officially registered on December 29, 2004, and given a certificate of registration number 51080.
The records furthermore show that Tanpower Resources filed a statement at BRELA declaring that ANBEM Limited had forfeited its shares in the company two months after (and not before) the process of taking over the mine actually began.
According to the official documents, Tanpower Resources filed the statement on February 21, 2005, while the process of taking over Kiwira coal mine began in December 2004.
Again, in a letter dated January 4, 2005 from Evans Mapundi of Tanpower Resources to the then energy and minerals minister Yona, there is a reference to a previous communication between the company and the minister on December 15, 2004, over the privatization of the mine.
At the time of Mapundi's correspondence with Yona, the then minister along with Mkapa were still bona fide shareholders of Tanpower Resources.
THISDAY investigations have also established that Mkapa and Yona - through their positions in government - were also directly involved in the privatization of the then state-owned Kiwira coal mine. And in mid-2005 - just a few months after its incorporation - Tanpower Resources entered into a joint venture with the government to acquire 70 per cent of the Kiwira coal mine shares.
The private company later increased its shareholding in the coal mine to 85 per cent, leaving the government with just 15 per cent.
Mr and Mrs Mkapa's son, Nicholas, was initially appointed to the board of directors of the renamed Kiwira Coal and Power Limited Company, while Nicholas' father-in-law (Joseph Mbuna) became board chairman.
Located in Mbeya Region, Kiwira is the country's only bona fide coal mine, with an average annual output in excess of 35,000 tonnes of the key mineral.
The ex-president has for the past year or so been hounded by allegations of corruption and abuse of office over his apparently private business dealings at State House, including dubious involvement in the privatization of the Kiwira coal mine.
He recently gave his first formal public response to the allegations, describing himself as a mere pensioner surviving on government retirement benefits at a public rally in his home village in Masasi District, Mtwara Region.
But the statement did not go down well with political commentators including various legislators of both the ruling CCM and opposition parties, who say that Mkapa failed to adequately address the allegations against him.