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PM implicated in Richmond saga
2008-02-07 09:27:15
By Bilham Kimati and Angel Navuri
Prime Minister Edward Lowassa has been directly implicated in the Richmond saga as one of the architects behind the controversial contract that a report by the Parliamentary select committee has said violated the bidding process.
Presenting the report in the National Assembly yesterday, Dr Harrison Mwakyembe, chairman of the select committee, said their findings had shown that Premier Lowassa had a hand in the whole issue.
Dr Mwakyembe`s committee was formed last year by the National Assembly to investigate circumstances that led the government to enter into a contract with Richmond Development Company LLC to generate power in 2006 when the country was facing power problems.
The select committee was formed after Members of Parliament said that they were not satisfied with the manner in which the tender was awarded to the American company to generate 100 megawatts of electricity and connect it into the national grid at a cost of 172.9bn/-
Speaking in the House yesterday, Dr Mwakyembe said that the bidding process was violated and that the whole issue smelt of corruption. He said his committee had proved beyond reasonable doubt that Richmond did not deserve to be awarded the tender.
``From detailed investigations outlined in this report, we would like to announce in this Parliament that Richmond Development Company LLC, which won the tender and eventually signed a contract with Tanesco on June 23, 2006 to generate 100 megawatts of electricity lacked experience, expertise and was financially incapacitated,``he said.
He said according to the committee`s findings, the firm had no share records or straight registration in the US or Tanzania and that the whole bidding process was marred by corruption and gross irregularities.
Richmond was later succeeded by Dowans Holdings.
Reading the report, Dr Mwakyembe said basing on what had happened as regards the whole saga, his committee had come up with 16 recommendations to make those responsible for this shameful act pay for their misdeeds.
He said due to the fact that the final selection of Richmond as the successful bidder was done by Prime Minister Lowassa himself on June 21, 2006, and due to the fact that he had exerted pressure to have Richmond awarded the tender, it was upon him, taking into consideration his position to the society, to ponder over the weight of the investigation and his responsibility to the nation.
Dr Mwakyembe also said it was upon Parliament which, according to the country`s constitution, endorses the appointment of a prime minister, to see whether the results of the investigation had not affected Lowassa`s reputation in the House.
Part of the proposal on this section reads: ``Article 52 of the Constitution of the United Republic of Tanzania of 1977 stipulates that the Prime Minister is the overseer of all activities and head of government business in the House.
The committee is not happy to learn that the Prime Minister is implicated in favouring Richmond. Nevertheless, the committee has played its role transparently as directed by the Parliament``.
The committee also proposed that the Minister for Energy and Minerals, Nazir Karamagi, be taken to task for barring Tanesco from withdrawing from the agreement with Richmond.
The committee said Karamagi`s decision indicated that some entrusted leaders were out to advance their personal interests at the expense of national interests.
As for the Prevention and Combating of Corruption Bureau report which had cleared the Richmond/government contract, the committee said the report was nothing but a mere white wash.
The committee proposed that immediate changes in the Bureau`s management be made to restore public confidence in the institution entrusted to fight corruption and not to praise and cover blunders.
The committee also proposed that the Attorney General, Johnson Mwanyika, and his representative, Donald Chidowu, who formed part of the Government Negotiations Team, be fired immediately for failure to advise the government on the discerned irregularities in granting Richmond the tender undeservedly.
Apart from the urgency (power crisis) that the country faced at the time, says the report, the government should never ever take a lead in violating laid down rules and regulations.
Dr Mwakyembe said his committee failed to comprehend the degree of arrogance displayed by officials in the Ministry of Energy and Minerals, who deliberately disregarded the advice by the cabinet on adherence to procurement procedures and for three times ignored technical advice by the Public Procurement Control Authority and ending up granting Richmond Development Company LLC the tender, leaving eight other applicants.
The report also discussed the need to review the Public Leadership Code of Ethics Act of 1995 to check on the uncalled-for tendency among some high-ranking government officials running private businesses while holding public offices, thus resulting in conflict of interest in making decisions rationally.
The committee further advised on the need for the government to abandon the colonial attitude that contracts between the government and private companies should remain secret even to the taxpayers.
``Parliamentary standing committees should be involved in the early preparations of agreements,`` Dr Mwakyembe said.
Last year the Minister for Plannin and Economic Empowerment, Dr Juma Ngasongwa defended the system of treating contracts as top secrets, saying it was the best practice.
Dr Mwakyembe however, said yesterday that treating contracts as top secrets would not help wananchi as when the government messes up it was the taxpayers who felt the pinch.
The committee`s report also implicated former Energy minister Dr Ibrahim Msabaha for confusion that reigned during the entire process, denying possibly more credible companies the right to win the tender.
Dr Mwakyembe said Msabaha was reported to have told legislators that he had no powers on the irregularities that marred the whole bidding process that favoured Richmond Development Company LLC because the company belonged to the `big boss,` meaning the prime minister.
``I am only taken as `Bangusilo,` meaning in the Zaramo tribe a sacrificial lamb to die for others,`` Dr Mwakyembe quoted Msabaha as saying.
However, interviewed MPs with regard to the validity of statements made out of oath said the truth would always remain truth.
``The person who speaks under oath and the same person speaking not under oath will be considered telling the truth. Perhaps he could not give details to the committee members during interrogation about the true ownership of the company fearing the consequences.
But since not being out of mind one`s statements will always hold water being under oath or not,`` said Jackson Makwetta, former Education minister.
Tension was high yesterday soon after Dr Mwakyembe had presented his committee`s report and cabinet ministers and legislators were seen in groups, probably contemplating the fate of Prime Minister Edward Lowassa.
The 165-page report will be discussed from today.
As we went to press legislators from the ruling Chama Cha Mapinduzi were meeting in the Pius Msekwa Hall under the chairmanship of President Jakaya Kikwete.
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