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- Aug 2, 2010
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The Public Accounts Committee (PAC) proposed thorough investigation on the Chinese company Sonangol International Ltd (CSIL), amid suspicions that the company has swindled the Tanzanian government.
The move came as the Controller Auditor General (CAG) report revealed that the company signed the Memorandum of Understanding (MoU) with Tanzania Airport Authority (TAA) and agreed to construct VIP Lounge at Julius Nyerere International Airports (JNIA) from 2006 to 2012, but it constructed the lounge below the agreed standard.
However, the same company signed another MoU in March 2008 with the government through the Ministry of Transport that it could bring in seven new aeroplanes including five Airbuses for Air Tanzania Company Ltd (ATCL) by 2012 and 2013, but the company failed to comply.
PAC Chairman Zitto Kabwe advised the government through the Attorney General Office to launch investigations over the company immediately while it is still operating in the country.
He also noted that in order to rescue public funds the government should send CSIL to court for breaching the contact before the term expires.
"This is broad-day light theft because he took the aeroplane against the term of the contract; he took the aircraft in 2010, a year before we cancelled the contract," said Kabwe referring to the head of the Chinese company who had allegedly taken one of the seven planes abroad for scheduled maintenance after having worked in Tanzania for only six months.
"The aircraft was leased to another client in Guinea, and later sold to Mozambique Airways for $16 million, but we are still paying them," Kabwe told the parliament, adding that the country has paid a total of $26 million to the Chinese businessman with the remaining balance of $26.9million.
In another development, Halima Mdee (Chadema) suggested her parliamentary counterpart Andrew Chenge (CCM) should be taken accountable for CSIL aircraft saga as he was the Minister of Transport in 2007 and that legal measures should be taken against him.
Chenge is also implicated to the Tegeta Escrow Account scandal, which Ms Mdee said would add to suspicions of his involvement in the CSIL dubious contract.
She also mentioned Iddi Simba as someone who should not be sidelined in the CSLI and the related corruption schemes, accusing the government of being discriminate in taking legal actions against high profile suspects.
"Iddi Simba was once involved in a corruption scandal surrounding the African Meat Company Ltd, but he is leading normal life of freedom and no one seems to care," Ms Mdee said.
Omary Nundu (CCM) also mentioned the "Osterbay Villas" as one of the construction projects whose funds had been embezzled, but stopped short of details.
Kabwe added salt to the government's injury when he blasted it for failing to clear Sh1.8 trillion worth pension arrears.
"The government promised to at least pay half of the Sh1.8 trillion it owed the pensioners by November last year, but nothing has been paid to-date," he said He accused the government of irresponsibility citing the purchase of police cars from Sh53 billion borrowed from The National Health Insurance Fund (NHIF) ten years ago, but failed to pay back the debt to-date.
"We will work on your recommendations, and we have already started adjustment of our payment system," Deputy Minister for Finance Mwigulu Nchemba responded to MP's concerns.
SOURCE: GUARDIAN ON SUNDAY
The move came as the Controller Auditor General (CAG) report revealed that the company signed the Memorandum of Understanding (MoU) with Tanzania Airport Authority (TAA) and agreed to construct VIP Lounge at Julius Nyerere International Airports (JNIA) from 2006 to 2012, but it constructed the lounge below the agreed standard.
However, the same company signed another MoU in March 2008 with the government through the Ministry of Transport that it could bring in seven new aeroplanes including five Airbuses for Air Tanzania Company Ltd (ATCL) by 2012 and 2013, but the company failed to comply.
PAC Chairman Zitto Kabwe advised the government through the Attorney General Office to launch investigations over the company immediately while it is still operating in the country.
He also noted that in order to rescue public funds the government should send CSIL to court for breaching the contact before the term expires.
"This is broad-day light theft because he took the aeroplane against the term of the contract; he took the aircraft in 2010, a year before we cancelled the contract," said Kabwe referring to the head of the Chinese company who had allegedly taken one of the seven planes abroad for scheduled maintenance after having worked in Tanzania for only six months.
"The aircraft was leased to another client in Guinea, and later sold to Mozambique Airways for $16 million, but we are still paying them," Kabwe told the parliament, adding that the country has paid a total of $26 million to the Chinese businessman with the remaining balance of $26.9million.
In another development, Halima Mdee (Chadema) suggested her parliamentary counterpart Andrew Chenge (CCM) should be taken accountable for CSIL aircraft saga as he was the Minister of Transport in 2007 and that legal measures should be taken against him.
Chenge is also implicated to the Tegeta Escrow Account scandal, which Ms Mdee said would add to suspicions of his involvement in the CSIL dubious contract.
She also mentioned Iddi Simba as someone who should not be sidelined in the CSLI and the related corruption schemes, accusing the government of being discriminate in taking legal actions against high profile suspects.
"Iddi Simba was once involved in a corruption scandal surrounding the African Meat Company Ltd, but he is leading normal life of freedom and no one seems to care," Ms Mdee said.
Omary Nundu (CCM) also mentioned the "Osterbay Villas" as one of the construction projects whose funds had been embezzled, but stopped short of details.
Kabwe added salt to the government's injury when he blasted it for failing to clear Sh1.8 trillion worth pension arrears.
"The government promised to at least pay half of the Sh1.8 trillion it owed the pensioners by November last year, but nothing has been paid to-date," he said He accused the government of irresponsibility citing the purchase of police cars from Sh53 billion borrowed from The National Health Insurance Fund (NHIF) ten years ago, but failed to pay back the debt to-date.
"We will work on your recommendations, and we have already started adjustment of our payment system," Deputy Minister for Finance Mwigulu Nchemba responded to MP's concerns.
SOURCE: GUARDIAN ON SUNDAY
