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House team faults bulk oil procurement system

28th March 2012
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Chairman of the Committee January Makamba

Parliamentary Energy and Minerals Committee (EMC) has faulted the bulk oil procurement system, saying it has failed to reduce fuel prices as expected by consumers and other oil stakeholders.

Chairman of the Committee January Makamba said the MPs and the general public expected a substantial price relief, but instead the prices have gone up.

He made the remarks in Dar es Salaam yesterday when his committee met with Petroleum Importation Coordinator (PIC) officials and oil stakeholders to discuss opportunities and challenges faced since the adoption of the new procurement system.

“Our interest is to see fuel prices going down…we made a promise in the parliament that once the system begins, fuel prices will be reduced,” he noted.

Responding to questions, an official from the Energy and Water Utility Regulatory Authority (Ewura), Godwin Samuel, said the Authority was investigating why fuel prices are increasing despite the adoption of the new system.

Senior Principal Marketing Officer with the Tanzania Petroleum Development Corporation Leo Lyayuka said the condition for tendering process under the system was not in favor of local companies to compete.

EMC member John Mnyika said serious actions must be taken to ensure the system benefits the public.

However, PIC Chairman Shanif Mansoor said said in response that the tendering process for the system was done in a transparent manner and it followed all procedures.

Meanwhile, the parliamentary Public Accounts Committee (PAC) has directed the Ministry of Home Affairs to hire qualified professional auditors to avoid getting qualified reports.

The resolution came after the committee wasn’t satisfied with the ministry’s accounts for the fiscal year 2008/09/10. The report missed supporting documents for most recorded expenditures.

PAC acting chairman Hezekiah Chibulunje said that 2.7bn/- was paid to the contractor, who built the fire brigade building without official documentation.

Responding, the Ministry’s chief accountant George Muhale said that payment documents got lost when the report was under preparation.

SOURCE: THE GUARDIAN
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