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- Jan 23, 2014
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[h=1]Revealed: Who got paid the Sh201bn escrow cash[/h]
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GEZA ULOLE. YUKO WAPI.NYUMBANI WAHITAJIKA MACHO MASKIO KAZIBA
Permanent secretary in the ministry of Energy and Minerals, Mr Eliakim Maswi
By The Citizen Investigation Team
Posted Monday, March 10 2014 at 10:04
In Summary
The $122 million (Sh201 billion), which was at the escrow account held at Bank of Tanzania (BoT), was transferred to Pan Africa Power Solutions (Tanzania) Ltd (PAP) account between November 28 and December 8, last year, The Citizen can reveal today.
This revelation comes at a time when Standard Chartered Bank, Hong Kong (SCB HK), through its lawyers, has given Tanzania Electric Supply Company (Tanesco) a 30-day ultimatum to re-deposit the money into the account or else face legal consequences.
An escrow account is a financial instrument held by a third party on behalf of other two parties in a transaction. The funds are held by this kind of account until it receives the appropriate written or oral instructions or until obligations have been fulfilled.
Contrary to claims by the ministry of Energy and Minerals that the escrow monies were paid to Independent Power Tanzania Ltd (IPTL), The Citizen has reliably established that the $122 million was actually paid to PAP.
PAP is the company that has acquired IPTL by using the escrow funds in a deal that has been queried by some legal experts, who are wondering how a once liquidated company became the assignee, and assigned its shares to a new investor.
According to details gathered by The Citizen, which are also corroborated by official correspondence from the BoT to the Treasury, the agreement to release the escrow billions was signed on October 27, 2013.
In a letter dated December 19, 2013, BoT deputy governor responsible for administration and internal controls, Mr Juma Reli, wrote: Invoking the provisions of Articles 7.7 of the Agreement, GOT and IPTL executed an agreement for delivery of the escrow funds to IPTL the agreement for delivery was signed on October 27, 2013, pursuant to which the bank was instructed to release the escrow fund.
In a letter directed to the permanent secretary of the ministry of Finance, Dr Servacius Likwelile, Mr Reli, further writes: The funds together with un-matured investments in treasury bills were dully transferred to IPTL on November 28, 2013 and December 5, 2013.
In view of the foregoing, we hereby request you to order the closure of the escrow account simultaneously we wish to kindly inform you that with effect from December 5, 2013 when the last transfer was effected, the Bank has been duly discharged from its role and obligations as an escrow agent with respect to Power Purchase Agreement between IPTL and Tanesco.
Though the BoT says it transferred the escrow funds to IPTL, the affidavit sworn by James Rugemalira, managing director of VIP Engineering and Marketing Ltd, served at the High Court on January 8, this year, state that the money was paid to PAP.
VIP Engineering and Marketing Ltd was a Tanzania company that owned 30 per cent shares in IPTL until it allegedly sold its stakes to PAP at the cost of $65 million (Sh129 billion)the income he described last week as just few cents for tobacco.
Just a day after the BoT letter, the government chief legal counsel, Attorney General Justice Frederick Werema, wrote to Hunton and Williams LLP, a US law firm representing Tanesco, stating: This letter (BoT letter) is instructive it may be helpful to any measures that you may wish to pursue on behalf of your client.
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GEZA ULOLE. YUKO WAPI.NYUMBANI WAHITAJIKA MACHO MASKIO KAZIBA
Permanent secretary in the ministry of Energy and Minerals, Mr Eliakim Maswi
By The Citizen Investigation Team
Posted Monday, March 10 2014 at 10:04
In Summary
- This revelation comes at a time when Standard Chartered Bank, Hong Kong (SCB HK), through its lawyers, has given Tanzania Electric Supply Company (Tanesco) a 30-day ultimatum to re-deposit the money into the account or else face legal consequences.
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The $122 million (Sh201 billion), which was at the escrow account held at Bank of Tanzania (BoT), was transferred to Pan Africa Power Solutions (Tanzania) Ltd (PAP) account between November 28 and December 8, last year, The Citizen can reveal today.
This revelation comes at a time when Standard Chartered Bank, Hong Kong (SCB HK), through its lawyers, has given Tanzania Electric Supply Company (Tanesco) a 30-day ultimatum to re-deposit the money into the account or else face legal consequences.
An escrow account is a financial instrument held by a third party on behalf of other two parties in a transaction. The funds are held by this kind of account until it receives the appropriate written or oral instructions or until obligations have been fulfilled.
Contrary to claims by the ministry of Energy and Minerals that the escrow monies were paid to Independent Power Tanzania Ltd (IPTL), The Citizen has reliably established that the $122 million was actually paid to PAP.
PAP is the company that has acquired IPTL by using the escrow funds in a deal that has been queried by some legal experts, who are wondering how a once liquidated company became the assignee, and assigned its shares to a new investor.
According to details gathered by The Citizen, which are also corroborated by official correspondence from the BoT to the Treasury, the agreement to release the escrow billions was signed on October 27, 2013.
In a letter dated December 19, 2013, BoT deputy governor responsible for administration and internal controls, Mr Juma Reli, wrote: Invoking the provisions of Articles 7.7 of the Agreement, GOT and IPTL executed an agreement for delivery of the escrow funds to IPTL the agreement for delivery was signed on October 27, 2013, pursuant to which the bank was instructed to release the escrow fund.
In a letter directed to the permanent secretary of the ministry of Finance, Dr Servacius Likwelile, Mr Reli, further writes: The funds together with un-matured investments in treasury bills were dully transferred to IPTL on November 28, 2013 and December 5, 2013.
In view of the foregoing, we hereby request you to order the closure of the escrow account simultaneously we wish to kindly inform you that with effect from December 5, 2013 when the last transfer was effected, the Bank has been duly discharged from its role and obligations as an escrow agent with respect to Power Purchase Agreement between IPTL and Tanesco.
Though the BoT says it transferred the escrow funds to IPTL, the affidavit sworn by James Rugemalira, managing director of VIP Engineering and Marketing Ltd, served at the High Court on January 8, this year, state that the money was paid to PAP.
VIP Engineering and Marketing Ltd was a Tanzania company that owned 30 per cent shares in IPTL until it allegedly sold its stakes to PAP at the cost of $65 million (Sh129 billion)the income he described last week as just few cents for tobacco.
Just a day after the BoT letter, the government chief legal counsel, Attorney General Justice Frederick Werema, wrote to Hunton and Williams LLP, a US law firm representing Tanesco, stating: This letter (BoT letter) is instructive it may be helpful to any measures that you may wish to pursue on behalf of your client.
1 | 2 | 3 Next Page»
Alex Kakala 8 hours ago GOVERNMENT LEADERS ARE RUNNING AMOK FOR BRIBE AND CORRUPTION MONEY BEFORE THE END OF THEIR TERM IN OFFICE IN 2015. THIS IS VERY DANGEROUS. NO ONE IS TRUTHFUL. THE GAME IS TO UTILIZE WHATEVER POSITION THEY HAVE AND GET RICH QUICK PRIOR TO EXPIRY OF THEIR TERM IN OFFICE
DISMISS THIS GOVERNMENT THROUGH CONSTITUTIONAL MEANS, AND APPOINT CARE TAKER GOVERNMENT. THIS SHOULD BE A LESSON TO OTHER AFRICAN CORRUPT GOVERNMENTS! WHERE ARE OUR COUNTRY LAWYERS, MPS ETC?
I THINK THE MINISTER OF FINANCE WAS APPOINTED FOR DIFFERENT REASON OF BEING A RUBBER STAMP TO SIGN WHATEVER THE MASTERS ASKS HER TO WITHOUT QUESTIONING! THEY ARE CALLING FOREIGN COMPANIES, RUNNING OVER THE COUNTRY TO SELL WHATEVER THEY FIND, FROM MTWARA TO KAGERA. ( FOREIGN INVESTORS). WHY RUSHING TO SPEND THE MONEY THE COUNTRY DON'T HAVE? HAVE THEY STARTED TO RECRUIT THEIR CHILDREN INTO POLITICS? WHAT OUT!
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Alex Kakala 8 hours ago Prof. Muhongo recently mentioned that, in his ministry of energy they are very professional and they don't take bribe! TANESCO is under his watch! His a dam compulsive liar. I spotted him from day one when he started twist and turn statements in order to sell oil and exploration blocks to foreign companies. This money was transferred under his authority, but as usual he plays chess. He recently mentioned restructuring of TANESCO, trying to give citizen a hope while behind they were swindling the money. I can bet with anyone, as long as he stays as minister, nothing you can expect. What they do? Just call international companies ask them to tender and they give huge percent kickbacks, they get the project and execute it. But finally who pays? Poor tax payers! All these talks of building the country with new infrastructure is nothing! They are using these projects to still from the public. Without these projects it is difficult for them to still, that is the reason of signing 17 billions with China. We have seen these movies before in other corrupt countries. Tanzania top leaders have learned the game. I mentioned that this government should be dismissed and appoint care taker government till general elections 2014. People take lightly our comments, because we are nobody in their daily lives, but the truth and history can not be changed. A single economic recession will bring Tanzania into poverty you have never experience before due to huge debts created.
Tanzanians we are to dumb until these guys pocking fingers into our ayes, we still tolerate them. We are not against anybody, but they can not continue to run the country in this manner. Treating every citizen like a rubber stamp! They must be stopped.
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Tibu Ngozi 11 hours ago Very frustrating. When you visit countries outside, you find that they use electricity for almost everything in the house, including cooking, which the Tanzanians can not dare to do! We can not afford. Ask our Hon. Minister for energy he will tell you: the cost of production is high. In fact, what we pay for is not cost coverage only, but this type of stupidity. I do not hesitate to use any type of condemnation language because my target is not any personality. It is the object of our money's siphons, whatever they may be. Who facilitates that may share the curse as the Ms Anonymous said. Whoever is dying for hospital, education, or any service denial due to those siphons in a direct or indirect way, poses an avoidable curse to ... But, who knew the late president of Libya, with all splendour he used to wear would die like that? God forbid.
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mishipayasimba Tibu Ngozi 10 hours ago It is very frustrating to live in Tanzania with those people stealing our money so damn easy.The country is going somewhere where the living is worse than dying! TANESCO has become the king solomon mine to where any politicians can easly turn out to be a milionaire!!!!!!
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anonymous 16 hours ago Where is the country going now? What are we leave for our future generations? Or we do not care about them? The founder of the nation left for us a tremendous resources, he knew that they will be used for us to transform the lives of many Tanzanians. But today no one in the system cares about others just making the lives of many poor Tanzanians harder and harder while those few live like their in heaven. If I my curse will be granted then I wish their family and their generations to suffer our pains and cries. Shame on them. Every day the electricity unit price is hiking and no one seems to care because they are sipping the people's money in treasury. Shame on you!! Shame!!!!!!
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mishipayasimba anonymous 10 hours ago Besides that, they are making the new constitution with more emphasis to protect themselves! That is the only reason they advocateed for Kura za wazi to make sure their wabunge will write KATIBA in favor of them.
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