allAfrica.com: Tanzania: Opposition - Reveal Contracts (Page 1 of 1)

The government yesterday came under renewed attack in Parliament over dubious mining and power contracts it signed with investors, with the opposition camp pressing for complete exposure on the contracts.

The opposition piled more pressure on Meremeta Gold, Alsthom Power Rentals, Independent Power (T) Ltd (IPTL), Tanpower (from Kiwira coal mine sale) and the slow pace in implementing power projects in the country. Presenting the opposition speech in Parliament, Shadow Minister Mohammed Habib Mnyaa (CUF-Mkanyageni) said the government should inform the public on individuals who owned the defunct Meremeta mining company.

Records show that foreign institutions or individuals owned shares in the firm, he said, noting that investigation conducted by the opposition camp indicated that institutions that owned shares in the firm include Trinnex (of South Africa) with 50 per cent shares and the Treasury Registrar who owned another 50 per cent shares.

He stated that records similarly indicate that Meremeta was registered on August 19, 1997 in the UK with registration number 342450 before it was offered a certificate of compliance no. 327 55 on March 1997 in Dar es Salaam.

He however cited the fact that London Law Services Ltd and London Law Secretarial, two law firms in the UK, had one per cent shares each in Meremeta, to provide for legal cover and advocacy. Showing how the government has been "playing around the subject," Mr Mnyaa said on June 23, 2006 the finance minister told the august House that Meremeta was owned by the government.The minister had stated that the firm was meant to buy gold from small scale miners but had later engaged in mining at Buhemba in Mara region.

Mr Nazir Karamagi, the former Minister for Energy and Minerals, when issuing a government statement in Parliament said that Meremeta was not sold to RandGold at a throw away price. He told Parliament that Meremeta had handed over its activities to TanGold after winding up its operations.

According to the shadow minister, the former minister was quoted to affirm that Tangold was owned by the government one hundred per cent. Mr Mnyaa noted however that another minister was quoted as saying in Parliament that the beleaguered firm had been bought from another firm.

"If the government says that the company was bought, from whom was it bought and why was it placed in the hands of Tanzania People's Defense Forces (TPDF)," asked My Mnyaa. He said that the opposition would continue pressing for clear and satisfying answers on the matter, maintaining that the response from Prime Minister Mizengo Pinda issued two weeks ago in the House were "surprising."

The premier's response that revealing details about Meremeta would mean revealing sensitive secrets of the military and therefore jeopardizing the security of the state, was surprising.

"Individuals who owned shares in Meremeta appeared to be foreigners, therefore secrets of our army are in safe inn the hands of foreigners, unlike Tanzanian legislators or the National Assembly?" the MP queried. He said the government should give correct answers and not political responses, noting that in case the matter was too sensitive then the government should give explanation a parliamentary steering committee.

The committee is chaired by the Speaker, he pointed out, saying the government could also explain the matter to the parliamentary standing committee for energy and minerals. Speaking about Alsthom Power Rentals, the opposition MP sought that the government give explanation as to why it entered a power generation agreement with the company, but until the expiry of the contract on March this year, it had not produced a single megawatt.

The opposition camp further quizzed the government over its failure to implement a project to convert IPTL generators from running on fuel to natural gas despite allocating Sh 10.243 billion for the project. He said a preliminary study on the project estimated it would cost Sh 23.76 billion, with implementation expected to have been completed late last year.

Despite allocating Sh 18. 458 billion in the 2006/2007 budget estimates and Sh 15.545 billion in the past financial year still another Sh 24 billion has been allocated for the same project in this financial year, he pointed out. Contributing to the ministry's estimates, Kishapu MP Fred Mpendazoe Tungu (CCM), wanted the government to investigate surroundings under which Kiwira coal mine was privatised.

"The report on mining chaired by Judge Mark Bomani states clearly that controversy surrounded the privatization of the company. There is need to investigate this matter and come up with a clear explanation," he asserted. He was holding a Bomani report distributed to MPs as an addendum to the minister's speech.

Presenting the ministry's estimates, Mr Ngelega told the House that a 100 MW power plant at Ubungo that is owed by Tanesco would start generating power early next month. He also said the contract with Aggreko would expire in November this year, also noting that since the government started implementing the gold audit programme in August last year it has saved Sh 13 billion.

Gold auditing expenses have gone down from Sh 16.4 billion to Sh3.4 billion, a task that was previously carried out by Alex Stewart Assayers Co. Speaking on the review of the mining policy and the Mining Act of 1998, the minister said the process was approaching completion.

On revenue negotiations with mining firms in the country, the minister said talks would continue with De Beers through the Williamson Diamonds Ltd, to re-assess the share distribution in the company.

The government has 25 per cent share stake in the company while the investor is the majority shareholder. He also said the government would continue holding negotiations with AngloGold Ashanti to scrap the 15 per cent allowance on investment capital.

A total of Sh 362.922 million has been allocated for the ministry in this financial year out of which Sh 320.067 billion will cater for development projects and Sh 42.854 billion meant for recurrent expenditure.

web allafrica.com	Enter your search terms	Submit search form
OR subscribers use AllAfrica's premium search engine


Use our pull-down menus to find more stories

Today's Most Active Stories