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Action on Dowans most welcome
2008-07-02 10:07:26
By Editor
Leading news on Tuesday splashed on all major national papers instantaneously echoed Tanesco`s decision to terminate services of the controversial Dowans Tanzania Limited with effect from August 1, 2008.
Dowans, heir of the yet even more controversial Richmond Development Company LLC`s 100MW generators installed at Tanesco`s headquarters at Ubungo in Dar es Salaam for supplying emergency power, was given marching orders at the most opportune time, when the utility company is close to paralysis due to 21bn/- capacity charges monthly payments made to independent power companies.
The Dowans-Richmond connections and the sins behind their corporate identities are now the subject of history in archives, given the indisputable graft influences committed by some top government officials in twisting procurement laws to ensure that companies of invented existence, and therefore questionable management, win the lucrative power supplying tender.
It would definitely amount to a disservice to our readers to remind them once more about the horrendous findings of the select parliamentary committee headed by Hon. Dr. Harrison Mwakyembe nor remarks made by the Public Procurement Regulatory Authority (PPRA) on how political influence and interference framed up the dubious contract.
Two lessons have emerged from the ongoing developments.
First, the government has demonstrated its ability and affirmative resolve to handle public affairs in the wisest manner, as expected from the electorates.
It is important for government to pay heed to its democratic noble calling of responding to the immediate concerns of the public, most so when they are scientifically represented by elected agents, like the Mwakyembe’s Select Committee.
Undoubtedly, termination of Dowans` contentious contract marks government`s courageous act in defense of public interest, as well as a remote signal for those in public office who put their back behind the principle of good governance.
When prolonged drought paralysed hydro-electric generation plants, some incorrigible graft lurking public officials sort of manoeuvred to open an energy crisis Pandora`s box, coming up with emergence power supply plans whose effect was to make electricity price unacceptably inflated to households and industry.
Pitiful enough, Dowans failed to provide power when it was most needed, now coming as no wonder if Tanesco`s lawyers` revelation that it was registered with a mere USD 100 as seed capital with no references is an established truth of the day.
Yet, it has been realising USD 152,000 daily in capacity charges.
Incredibly, Tanesco now pays about 21bn/- in monthly capacity charges to such emergency power companies, while its monthly revenues are maximally 31bn/-.
It is hard to imagine if Tanesco can really meet its other critical overheads with thin balances remaining.
Now, we expect more stones to start rolling as soon as possible, based on the recommendations of the select parliamentary team that all elements implicated in the probe report be taken to task as gesture of enforcing practice of good governance.
Equally, some of those agents who seem to be going the rounds in an attempt to sweeten the pill of the elements mentions the Richmond-Dowans scandal should consider themselves as driving dreams from pillar to post.
Astonishingly, energy crisis in Tanzania looks as if it is getting exaggerated by dubious power contracts ensconced under the influence of official graft, and not so much about lack of energy resources.
For sure, unless this trend is brought to complete stop through proper institutional breaks, we can as well forget about making this economy globally competitive.
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