Richmond probe team gets down to business: Terms of reference mapped out, Dec 15 set as deadline
THISDAY REPORTER
Dar es Salaam
THE newly-appointed parliamentary probe committee on the 172.9bn/- Richmond power generation deal yesterday began its work by examining various key documents related to the controversial contract.
Speaking by telephone from Dodoma, committee chairman Dr Harrison Mwakyembe said this was the first move before summoning relevant people for questioning.
We have started our assignment with immediate effect. To start with, we are looking at the different documents available on the issue, and then after that we can actually start calling those familiar with the matter to appear before the committee, said Dr Mwakyembe, the legislator for Kyela on a CCM ticket.
He told THISDAY that the five-member select committee had no intention of leaving any stone unturned in the probe, and hinted that a number of individuals familiar with the Richmond contract would be asked by the committee to offer relevant information.
Mwakyembe said the committee has been given until December 15 this year � a period of approximately four weeks - to conclude its work. Other committee members are Lucas Selelii (Nzega-CCM), Herbert Mntangi (Muheza-CCM), Ms Stella Manyanya (Special Seats-CCM) and Mohamed Mnyaa (Mkanyageni-CUF).
The Speaker of the National Assembly, Samuel Sitta, announced in the House that the probe team has been given six terms of reference to guide them in their work. These include to establish who are the exact owners of the US-registered Richmond Development Company; what is the nature of the companys activities; and how suitable was it to be awarded the contract to generate 100MW gas-powered electricity to the national grid.
The team has also been tasked with evaluating the entire tender process leading up to the highly-controversial decision to eventually award the contract to Richmond, including assessing the circumstances behind the tender process and establishing whether or not all legal, regulatory and ethical procedures were followed.
According to the terms of reference as seen by THISDAY, the committee will scrutinise the contract signed on June 23 last year between Richmond and the Tanzania Electrical Supply Company Limited (TANESCO), and compare its provisions with other similar government contracts.
The probe team will also review the various contractual rights and services given to Richmond, such as the opening of a letter of credit, and determine the legality of such favours.
The probe team has further been given the mandate to review and offer its opinion on previous reports related to the Richmond deal, prepared by the Prevention and Combating of Corruption Bureau (PCCB), the Public Procurement Regulatory Authority (PPRA), and any other agencies.
Committee members will also be required to review any other issue connected with the Richmond deal, and recommend possible improvements to future government tender processes in the best interests of the nation.
According to THISDAYs latest findings, a total of 17 officials from both sides (the government and Richmond Development Company) participated in the contract negotiations conducted in Dar es Salaam between June 8 to 15 last year.
Speaking in parliament on Tuesday evening, the Minister for Energy and Minerals, Nazir Karamagi, pledged full cooperation in the latest Richmond probe, stating: I will give the probe team all documents involving the floating of the tender and the consequent signing of the contract agreement.
This was partly in response to a complaint raised in the House by ruling party MP Christopher Ole-Sendeka (Simanjiro�CCM), to the effect that Karamagi had refused to furnish the parliamentary trade and investments committee with a copy of the suspect contract between Richmond and TANESCO.
The minister, who was clearly on the defensive, said his office had not received any formal request for the contract from the Bunge standing committee. No one informed me that the committee needed the documents, he stressed.
Several other MPs, including Ms Mhonga Said Ruhwanya (Special Seats�CHADEMA), demanded to be furnished with the names of the Richmond companys top executives, as well as the identity of the top government leader(s) who is said to have influenced the awarding of the contract to the US-registered firm.
According to the opposition lawmaker, it was important for MPs to be told who this influential culprit in government who interfered in the tender process was.
MPs were clearly perturbed over how Richmond could have been given such a massive power generation contract even after the same company had previously failed to implement another project involving construction of a fuel pipeline from Dar es Salaam to Mwanza.
Quoting from the PPRA report on the power deal, Dr Wilbrod Peter Slaa (Karatu�CHADEMA) underscored in the House that the state-run public procurement watchdog had declared that the contract between TANESCO and Richmond was signed at night under strange circumstances.
According to the same report, TANESCO was ultimately ordered to sign a contract it did not want and enter into business with a company it had already rejected as being incompetent.
And facts on the ground show that Richmond later all but breached its part of the deal when, in December last year, it assigned the contract to Dowans Holdings S.A company of the United Arab Emirates.