MUHONGO SPARED AS TIBAIJUKA SENT PARKING

President Jakaya Kikwete addresses the nation from Diamond Jubilee Hall in Dar es Salaam on Monday. (Photo: Khalfan Said)

As part of implementing parliament’s resolution on the Tegeta Escrow account scam, President Jakaya Kikwete yesterday fired Prof Anna Tibaijuka, the Lands, Housing and Human Settlement Development minister.

 

The President said the fate of the remaining two government officials who according to the parliament’s resolutions should also be ousted, will be determined afterwards.

 

President Kikwete assured that the fate of the two officials - minister for Energy and Minerals, Prof Sospeter Muhongo and his Permanent Secretary Eliakim Maswi awaits investigation report to be submitted to the President later this week.

 

Prof Tibaijuka’s was fired on account that she had received 1.6bn/- of the misappropriated money from James Rugemarila, a business man involved in the scam. 

 

Late last week, Prof Tibaijuka rejected the MPs’ calls for her resignation, saying the money was a donation for a school where she serves as the main fundraiser.

 

In regard to the minister’s claim the president said: “There were ethical shortfalls in her conduct ... that is why we agreed to ask the minister to give us the opportunity to appoint someone else in her position.”

 

“One of the biggest questions raised is why this money was not paid directly to the school and was instead deposited in a personal bank account in her name,” he noted.

 

Addressing Dar es Salaam elders in the city yesterday, the Head of State said responsible authorities are still investigating allegations facing Muhongo and Maswi in the controversial withdrawal of billions of shillings from the Tegeta escrow account.

According to the President who pointed out that the escrow account in the Bank of Tanzania (BoT) had 202.9bn/- and not 306.7bn/- as claimed earlier.

 

“We want to make sure that justice is served. We have received the eight resolutions from the parliament and we are still working on them,” he said.

 

The President explained that since Maswi is a civil servant, there are issues that should be handled according to civil servants’ terms of conducts, “we are working on the matter and we have commissioned responsible authority to investigate it further.”

The investigations, according to the President, will be availed to him in two days.  

 

Regarding the parliament’s resolution to dissolve the Board of Tanzania Electric Supply Company (Tanesco), President Kikwete said he has already appointed a new Board of Directors Chairman for the utility company as advised by the parliament. 

 

He added that the term of service for the current members of the Board has expired and that the government was working to outsource other members.

 

Reacting on recommendation that the government should take over operations of IPTL as per the country’s regulations, the President said it is a good idea, “however, it might end up discouraging private investors in the country.”

 

He further agreed with the concept of reviewing power investment contracts but expressed fear on making them accessible for public consumption. 

 

The parliament had resolved that all the contracts be reviewed and made public, but the President made it clear that such a decision had business challenges hence the government will work on modalities to ensure that both parties are not affected.

 

“Yes we will need to ensure transparency without affecting investors… but we need to put up modalities that will ensure we basically protect the interests of both parties,” he said.

 

Regarding other resolutions, the President said the government had commissioned responsible organs to carry out a thorough investigation before taking further actions.

 

Explaining on the Tegeta escrow account, the President said the money which was in the account was IPTL’s money.

President Kikwete was of the view that since IPTL was a prime recipient of the money from the account, it was the principal owner of the money.

 

The Head of State announced that the government was investigating resurfacing claims on the controversial acquisition of shares of IPTL to see if regulations were appropriately observed.

He said part of the decision is also to ensure that the government benefits from the capital gains tax of IPTL shares.

SOURCE: THE GUARDIAN