Tanesco bosses fired over Sh280 billion loan scam
Former Tanesco Managing Director Dr Idris Rashidi.
Two top directors of the cash strapped power utility firm have been suspended in connection with the Sh280 billion loan that the company borrowed from a consortium of local banks about three years ago.
Just three years ago, the company borrowed $300m from the consortium at 10 percent interest per annum, but almost 80 percent of that money went straight to settling outstanding debts.
The officers have been suspended following the comprehensive audit report compiled by the Controller and Auditor General (CAG) office, after an alarm was raised last year on how the billions were spent.
According to inside sources, the suspended officers are Jamhuri Ngelime who was the Chief Finance Officer and Nicholas Suke, who was the Director of Procurement.
They were suspended on Thursday this week pending thorough investigations to be carried out per the Boards recommendations.
A senior official within the financially troubled State power firm told The Guardian on Sunday that the suspension was reached after a two-day Board meeting that took place between Wednesday and Thursday this week.
During the meeting, the Board among other things also reviewed and discussed the CAG findings on the allegations of Tanescos housing scam that was revealed for the first time in parliament by Sumve legislator, Richard Mganga Ndassa.
According to leaked information from the Boards meeting, the CAG report on the housing scam has strongly damaged the reputation of the former Tanesco Managing Director Dr Idris Rashidi.
The CAG report has painted a bleak future for Dr Rashidi, for whom some top Tanesco officers as well as politicians had been campaigning to have his tenure as MD renewed.
The CAG report has directly linked the former MD with the housing scam reports This gives him very slim chance to be re-appointed, although his name was on the short list of candidates, our source who spoke under the conditions of anonymity said yesterday.
Tanescos housing scam came into the spotlight for the first time on July, last year during the Parliamentary budget after Ndassa told the House that the company spent over Sh1.4 billion on the repair of seven residential houses occupied by its directors.
Contributing to the budget of the ministry of Energy and Minerals, the legislator from the ruling Chama Cha Mapinduzi said the staggering expenditure was approved by the management without the knowledge of the board of directors.
He told the National Assembly that a top Tanesco official was already preparing to buy one of the houses repaired at a cost of Sh600 million for a mere Sh60 million. Is this how public money should be spent? Is this what we call good governance ? Ndassa was quoted as querying in House.
According to Ndassa, the seven houses, all in Dar es Salaam, were refurbished using part of the Sh300 billion that the power utility had borrowed from local banks in 2007 to revamp its operations.
Giving details, the MP listed the houses, including House No.13 located at Oysterbay. He said the house was occupied by the former MD and was repaired at the cost of Sh 600 million.
Others are house No.89 on Guinea Road (Sh250.4 million), house No.65 on Laibon Road (Sh190.4 million), and house No.459 on Mawenzi Road (Sh130 million).
Also on the list is house No.93, also on Guinea Road (Sh88.5 million), house No.315 on Toure Drive (Sh79 million) and house No.98 on Uganda Lane, which cost Sh73 million.
After MP demanded thorough explanation from the government, Minister for Energy and Minerals William Ngeleja formed a special task force to investigate the allegations.
When contacted yesterday to confirm the reports, the Minister for Energy and Minerals, William Ngeleja, didnt deny or confirm, directing our staff writer to contact the Tanesco Acting Managing Director.
Just contact the Acting MD, I dont want to be their spokesperson. The Minister told The Guardian on Sunday.
When contacted, the Acting MD, Stephen Madaba, declined to comment, saying he hasnt received any official report about the Boards decisions.
SOURCE: GUARDIAN ON SUNDAY
Former Tanesco Managing Director Dr Idris Rashidi.
Two top directors of the cash strapped power utility firm have been suspended in connection with the Sh280 billion loan that the company borrowed from a consortium of local banks about three years ago.
Just three years ago, the company borrowed $300m from the consortium at 10 percent interest per annum, but almost 80 percent of that money went straight to settling outstanding debts.
The officers have been suspended following the comprehensive audit report compiled by the Controller and Auditor General (CAG) office, after an alarm was raised last year on how the billions were spent.
According to inside sources, the suspended officers are Jamhuri Ngelime who was the Chief Finance Officer and Nicholas Suke, who was the Director of Procurement.
They were suspended on Thursday this week pending thorough investigations to be carried out per the Boards recommendations.
A senior official within the financially troubled State power firm told The Guardian on Sunday that the suspension was reached after a two-day Board meeting that took place between Wednesday and Thursday this week.
During the meeting, the Board among other things also reviewed and discussed the CAG findings on the allegations of Tanescos housing scam that was revealed for the first time in parliament by Sumve legislator, Richard Mganga Ndassa.
According to leaked information from the Boards meeting, the CAG report on the housing scam has strongly damaged the reputation of the former Tanesco Managing Director Dr Idris Rashidi.
The CAG report has painted a bleak future for Dr Rashidi, for whom some top Tanesco officers as well as politicians had been campaigning to have his tenure as MD renewed.
The CAG report has directly linked the former MD with the housing scam reports This gives him very slim chance to be re-appointed, although his name was on the short list of candidates, our source who spoke under the conditions of anonymity said yesterday.
Tanescos housing scam came into the spotlight for the first time on July, last year during the Parliamentary budget after Ndassa told the House that the company spent over Sh1.4 billion on the repair of seven residential houses occupied by its directors.
Contributing to the budget of the ministry of Energy and Minerals, the legislator from the ruling Chama Cha Mapinduzi said the staggering expenditure was approved by the management without the knowledge of the board of directors.
He told the National Assembly that a top Tanesco official was already preparing to buy one of the houses repaired at a cost of Sh600 million for a mere Sh60 million. Is this how public money should be spent? Is this what we call good governance ? Ndassa was quoted as querying in House.
According to Ndassa, the seven houses, all in Dar es Salaam, were refurbished using part of the Sh300 billion that the power utility had borrowed from local banks in 2007 to revamp its operations.
Giving details, the MP listed the houses, including House No.13 located at Oysterbay. He said the house was occupied by the former MD and was repaired at the cost of Sh 600 million.
Others are house No.89 on Guinea Road (Sh250.4 million), house No.65 on Laibon Road (Sh190.4 million), and house No.459 on Mawenzi Road (Sh130 million).
Also on the list is house No.93, also on Guinea Road (Sh88.5 million), house No.315 on Toure Drive (Sh79 million) and house No.98 on Uganda Lane, which cost Sh73 million.
After MP demanded thorough explanation from the government, Minister for Energy and Minerals William Ngeleja formed a special task force to investigate the allegations.
When contacted yesterday to confirm the reports, the Minister for Energy and Minerals, William Ngeleja, didnt deny or confirm, directing our staff writer to contact the Tanesco Acting Managing Director.
Just contact the Acting MD, I dont want to be their spokesperson. The Minister told The Guardian on Sunday.
When contacted, the Acting MD, Stephen Madaba, declined to comment, saying he hasnt received any official report about the Boards decisions.
SOURCE: GUARDIAN ON SUNDAY