Account for 16bn/- IPTL bailout, govt told
 
2005-07-13 09:11:11
By Pastory Nguvu, Dodoma

	Minister of Energy and Minerals Daniel Yona (left) and his deputy, Dr Ibrahim Msabaha, walk into Parliament in Dodoma yesterday, shortly before Yona tabled his ministry’s 2005/06 budget estimates. (Photo: Khalfan Said)

Parliament wants the government to explain why it still spends 16bn/- per annum to offset Independent Power Tanzania Ltd (IPTL) operating costs.

MPs demanded a comprehensive explanation on why government still spends billions of shillings to offset IPTL’s operating costs.

In his 2005/06 budget, the Minister for Energy and Minerals, Daniel Yona, said his ministry would spend US$18 million to finance the cost of changing IPTL’s engines from those that use diesel oil to Songo Songo gas compatible ones.

He told the House that the shift to using Songo Songo gas would reduce by half the cost of running IPTL from 10bn/- to 5bn/- per month.

Isaac Cheyo (Bariadi East) said that TANESCO should instead bail out IPTL.

Parliament also queried the legality of a government’s decision to give Mafuta House to the National Social Security Fund (NSSF) for free.

The Parliamentary Committee on Investments and Trade took the government to task over the transfer of the building whose construction was financed by two state corporations.

Presenting its views on the 2005/06 Ministry of Energy and Minerals budget, the committee questioned the legality of the decision and demanded to be furnished with details of how ownership of the building changed hands.

Herbert Mntangi(CCM)told the House that Tanzania Petroleum Development Corporation (TPDC) and the National Housing Corporation (NHC) built the house in partnership.

Mntangi spoke on behalf of the chairman of the committee, William Shellukindo.

He said when the government decided to transfer the building to NSSF, the two parastatals had already invested more than 15.7bn/- in it, which has not been refunded.

“The reasons given were that TPDC and NHC are parastatals owned by 35 million Tanzanians and earn the government dividends.

NSSF is an institution with a 346,664 membership and does not earn the central government dividends,” he said.

In addition, the legislator said, TPDC and NHC were legal entities and any decision to divide their property must also take into consideration all legal issues pertaining to the transfer of ownership of their property.

• SOURCE: Guardian