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Attorney General Frederick Werema.PHOTO|FILE
By The Citizen Reporter
Posted Sunday, October 5 2014 at 09:09
In Summary
But the government has come back with its own denial. Besides saying the accusations are baseless, it wants the investors to be the first to make their deals public if their allegations are truly honest. The counter-claim has bamboozled observers, with many wondering who is fooling who.
Dar es Salaam. After investors accused it of secrecy surrounding contracts, the government has dared its critics to go public with whatever details they choose to disclose. According to senior officials, including ministers, there is no law or regulation that stands in their way.
Many of the officials said they were surprised by the claims since it was the investors who ask for confidentiality, mostly for commercial reasons. One minister said the investors ask for secrecy because it helps them hold off competition and gives them an edge over business rivals.
Speaking on condition of anonymity, he told The Citizen on Sunday in Dodoma last week: "The government has never asked anyone or directed them to keep the contracts secret… We do not have any policy or law that binds them not to disclose contracts. They can do so if they wish."
A fortnight ago, this paper exclusively reported that investors were ready to disclose their contracts with the government but for the latter's opposition. They blamed the secrecy surrounding the contracts on the government and said they saw no reason to keep the deals confidential.
For many years, the impression created by the authorities was that it was the investors who wanted the details of the contracts to stay under wraps. Gas and mining investors who spoke on the matter said the opposite was the truth.
But the government has come back with its own denial. Besides saying the accusations are baseless, it wants the investors to be the first to make their deals public if their allegations are truly honest. The counter-claim has bamboozled observers, with many wondering who is fooling who.
"The solution here would be in a specialised legal framework that demands for transparency from all parties," said Mr Joel Nanauka of IQ Management Services said.
According to him, such disclosures should not be confined to mining, oil and gas investors but should also include those in other lucrative sectors such as banking and mobile telephony.
There are those who argue that both investors and the authorities have hidden interests in the contracts that they cannot readily disclose.
Transparency
The ruling CCM has also challenged the investors to disclose their contracts if they want to do so. Secretary General Abdulrahman Kinana said doing so would help promote transparency in the management of natural resources and national wealth.
"If those who insisted on confidentiality in the contracts now want them to be public, I have no problem with that," he added. "In fact, it will help promote transparency and let Tanzanians know how their resources are utilised."
Attorney General Frederick Werema says he has never come across a secret contract in his career, especially in public contracting where such deals are uncommon.
According to him, confidentiality has never been absolute and the terms and agreements of any contract can be disclosed with the consent of the parties involved.
Mr Werema challenged the investors accusing the government of secrecy to be the first to make their contracts public.
It was difficult for him to make an informed comment, he added, without information on the contracts being referred to and, moreover, few of the investment contracts had confidentiality clauses.
"Yes, confidentiality in commercial contracts exists," Mr Werema told The Citizen on Sunday. "But such confidentiality is not absolute. The veil can be lifted."
Whereas some people are not particularly concerned about transparency in the contracts, others want safeguards against corruption and incompetency in negotiating them.
Prof Mwesiga Baregu of Saut wants three things guaranteed: Transparency because the people have a right to know, professional competence in negotiations and safeguards against corruption.
The chairman of PanAfrican Energy, Mr Patrick Rutabanzibwa, says that the country's negotiation capacity is still very low but contracts can be balanced if Tanzanians are empowered to follow up the deals.
Activist Moses Kulaba noted: "It is true there is neither regulatory framework nor obligation by either party, so the decision to disclose contracts depends on the goodwill of either party. But this goodwill is overridden by the secrecy and disclosure provisions that are built into the contracts and none of the parties is willing to jump the gun first. If the companies are accusing the government, why can't they show their copies first?"
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