Call him crazy, call him crass, but you can never say that Tanzanian President John Magufuli is a paper tiger. He does what he says; and with time, is proving himself to be exactly what Tanzania needs: a tough leader willing to take on the establishment to benefit the majority.
In the past week, two more events confirmed the resolve of the man nicknamed “The Bulldozer” to clean up mining in his country.
Minister of State in the president’s office (regional administration and local government) George Simbachawene, and Deputy Minister of Works, Transport and Communications Edwin Ngonyani resigned. Then Minister of Finance Dr Philip Mpango ordered the forfeiture of diamonds worth $29.5million (more than R384m), which were impounded at Julius Nyerere international airport.
Mpango also called for the arrest of - and the confiscation of all property belonging to - any government official implicated in the illicit export of gemstones out of Tanzania. Earlier the president had decried the loss of $48 billion annually in what was rightfully Tanzania’s revenue, due to illicit practices by mining companies.
They can only do so with the help of some government official looking the other way.
British gold-mining company Acacia was fined $190bn in June, of which $40bn was unpaid taxes. Some of the people I spoke to during my visit to Tanzania in mid-August dismissed his tough action as a reflection of his lack of understanding of how mining companies work.
However, 57-year-old Magufuli was not cracking his whip for the first time since becoming head of state in November 2015.
His austerity measures - such as the redirecting of funds from lavish national day celebrations and the inauguration of the president towards the building of hospitals - are well known. He cut down a lot of conferencing expenditure, ordered the most basic flight options for government officials, if they cannot drive the distance, while channelling the funds into infrastructure.
Inevitably, those who were benefiting from the absence of this kind of thrift in the government are bound to complain. I have heard some of the commentators accusing him of the kind of heavy-handedness that is bound to scare investors away. Who demands $190bn of one company, they ask.
In defence of Magufuli’s government, knowingly under-declaring the value of any consignment being exported or imported is illegal. In terms of Section 201(G) of the East Africa Community Customs Management Act of 2004, any such consignment shall be nationalised. So, the Tanzania Revenue Authority officials are going to be even harder at work to fix lots of malfeasance by the private sector.
The resignations of Simbachawene and Ngonyani followed the handing over of some reports by officials implicated in the investigation into tanzanite and diamond mining. Magufuli has been tough on any seepage of mineral rights, revenue or other benefits out of Tanzania due to inexertion on the part of government officials or downright corruption by the members of the private sector in cahoots with some officials of the government.
Simbachawene and Ngonyani emphasised their resignations were not an admission of guilt, but in compliance with the advice by the president to those whose names appear in the report. Ngonyani, who worked in the ministry of energy and minerals between 2006 and 2016, when the government was reportedly ill-advised not to buy Petra Energy and Minerals, is among those being blamed for denying the government its share of a cool $362m business.
It is refreshing to see politicians resigning before being pushed, because they “support the president’s efforts to make sure that the country’s resources benefit its citizens”, as Ngonyani is cited as having said.
The private sector cannot be continually implicated in gross corruption, like undervaluing their receipts without raising the ire of leaders like Magufuli. If they find his manner too tough, they must play by the rules. May The Bulldozer stay longer to clear the rubble that is choking Africa.
Here comes The Bulldozer | African Independent
In the past week, two more events confirmed the resolve of the man nicknamed “The Bulldozer” to clean up mining in his country.
Minister of State in the president’s office (regional administration and local government) George Simbachawene, and Deputy Minister of Works, Transport and Communications Edwin Ngonyani resigned. Then Minister of Finance Dr Philip Mpango ordered the forfeiture of diamonds worth $29.5million (more than R384m), which were impounded at Julius Nyerere international airport.
Mpango also called for the arrest of - and the confiscation of all property belonging to - any government official implicated in the illicit export of gemstones out of Tanzania. Earlier the president had decried the loss of $48 billion annually in what was rightfully Tanzania’s revenue, due to illicit practices by mining companies.
They can only do so with the help of some government official looking the other way.
British gold-mining company Acacia was fined $190bn in June, of which $40bn was unpaid taxes. Some of the people I spoke to during my visit to Tanzania in mid-August dismissed his tough action as a reflection of his lack of understanding of how mining companies work.
However, 57-year-old Magufuli was not cracking his whip for the first time since becoming head of state in November 2015.
His austerity measures - such as the redirecting of funds from lavish national day celebrations and the inauguration of the president towards the building of hospitals - are well known. He cut down a lot of conferencing expenditure, ordered the most basic flight options for government officials, if they cannot drive the distance, while channelling the funds into infrastructure.
Inevitably, those who were benefiting from the absence of this kind of thrift in the government are bound to complain. I have heard some of the commentators accusing him of the kind of heavy-handedness that is bound to scare investors away. Who demands $190bn of one company, they ask.
In defence of Magufuli’s government, knowingly under-declaring the value of any consignment being exported or imported is illegal. In terms of Section 201(G) of the East Africa Community Customs Management Act of 2004, any such consignment shall be nationalised. So, the Tanzania Revenue Authority officials are going to be even harder at work to fix lots of malfeasance by the private sector.
The resignations of Simbachawene and Ngonyani followed the handing over of some reports by officials implicated in the investigation into tanzanite and diamond mining. Magufuli has been tough on any seepage of mineral rights, revenue or other benefits out of Tanzania due to inexertion on the part of government officials or downright corruption by the members of the private sector in cahoots with some officials of the government.
Simbachawene and Ngonyani emphasised their resignations were not an admission of guilt, but in compliance with the advice by the president to those whose names appear in the report. Ngonyani, who worked in the ministry of energy and minerals between 2006 and 2016, when the government was reportedly ill-advised not to buy Petra Energy and Minerals, is among those being blamed for denying the government its share of a cool $362m business.
It is refreshing to see politicians resigning before being pushed, because they “support the president’s efforts to make sure that the country’s resources benefit its citizens”, as Ngonyani is cited as having said.
The private sector cannot be continually implicated in gross corruption, like undervaluing their receipts without raising the ire of leaders like Magufuli. If they find his manner too tough, they must play by the rules. May The Bulldozer stay longer to clear the rubble that is choking Africa.
Here comes The Bulldozer | African Independent
