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Mkulo: Only President can end TICTS contract
By Felister Peter
2nd June 2009
By Felister Peter
2nd June 2009
Finance and Economic Affairs minister Mustafa MkuloSensitivity of the Tanzania International Container Terminal Services (TICTS) contract makes it difficult for any minister or ministry to just terminate it without involving the head of state, a House Committee heard yesterday.
Responding to questions after briefing the Parliamentary Finance and Economy Committee, Finance and Economic Affairs minister Mustafa Mkulo said he saw no way his office or any other ministry could terminate the contract.
Mkulo who took questions after briefing the committee members on the state of the economy for the current financial year and the 2009/10 - 2011/12 mid-term plan, appealed for MPs patience as the government worked to resolve the matter.
However, he said TICTS issues did not fall under his docket, but under the Infrastructure Development ministry. Mkulo explained that they work closely with Tanzania Revenue Authority (TRA) and not Tanzania Ports Authority (TPA). He said that after TPA has done its work, his ministry through TRA intervenes to collect revenues.
You cannot blame us for TICTS poor performance we are not handling containers at the Dar es Salaam port, our job is to collect revenues, said the minister.
Last week members of the same committee queried why the government was yet to terminate the contract with TICTS, but got no clear response.
A specific question about TICTS contract was raised by Mvomero MP, Sadiki Murad, who had wanted to know why the delay and when the government will terminate the contract.
Mkulo promised members of the House committee that he would communicate with his Infrastructure Development counterpart Dr Shukuru Kawambwa before the commencement of next weeks long budget meeting so that they could together chart the way forward.
Minister Mkulo said the idea was for the two to forward recommendations about the TICTS contract to President Jakaya Kikwete before a final decision could be made.
The National Assembly last year formally endorsed the abrogation of the controversial 15-year extension of the 10-year contract given to the TICTS.
The extension is closely linked to a series of corruption scandal allegations facing a number of senior officials in immediate former president Benjamin Mkapas third-phase government, among them cabinet ministers.
The resolution by the legislature, endorsed in the April meeting last year, followed long hours of heated debate on a private motion tabled by Godfrey Zambi (Mbozi East - CCM) on the legality of the extension and the cargo handling firms efficiency.
The motion contained detailed information, including confidential signed letters, written pieces of evidence and various other documents, most centering on gross violations of procedures, regulations and the 2004 Public Procurement Act, in respect of the extension of the contract.
Official records show the former president, former Finance minister (under him) Basil Mramba, and his entire cabinet as having had a hand in making the extension possible.
In a September 6, 2005 letter (reference Number TYC/R/160/32) to the Tanzania Revenue Authority (TRA) commissioner general, Mramba states: I would like to inform you that the President (Benjamin Mkapa) has directed the Ministry of Communication and Transport, specifically the Tanzania Ports Authority (TPA), to extend TICTS contract to 25 years.
The letter said President Mkapa had also directed that the ministry allow TICTS to use Berth No. 8 at the Dar es Salaam port, the land in the neighbourhood, and the Ubungo Container Depot in the city to store containers, then lying at the hugely congested port.
According to Zambi the contract was corruptly extended after Mkapa had dissolved the cabinet.
SOURCE: THE GUARDIAN