Writes Leo Odera Omolo
INFORMATION emerging from Dar Es Salaam says the United Republic of Tanzania is facing renewed pressure to shelve the construction of an International Airport next to the world heritage and famous Serengeti National Game Park, creating fears of possible delays in the multibillion dollar project.
THE Deputy Transport Minister Charles Tizeba was last week widely quoted by the local media houses as saying that the construction of the airport outside the Serengeti National Game Park is likely to fail because of an on-going campaign by environmentalists to stop the project.
“The government is facing real pressure from some circles, but it will go ahead despite all these,’ he said.
The construction of the USD 350 million airports was expected to start early this year and the Tanzania Civil Aviation Authority had approved the project, he added.
The government move to put up the airport included the construction of a 321 kilometer tarmac road through Serengeti. This element was shelved over the concerns that it would interfere with the wildebeest migration, the only one of its kind in the world and crucial to the existence of the Serengeti ecosystem.
The friends of the Serengeti movement have repeatedly denounced having an airport so close to the world heritage site, saying it would attract human activities near the fragile Serengeti-Mara ecosystem.
Opponents of the project have maintained an argent saying that the landing and takeoff of large planes in Mugumu could damage wildlife migration patterns.
“The new airport", said the Minister, "would offer tourists the option tour KilimanjaroIntrnational Airport and after visiting Tarangire.LakeManyara, Ngorngoro Crater and SERENGETI International Airport to fly back homer".
Analyists,however, say the airport would increase the number of visitors from 800,000 annually to 1.6 million by the year 2015 and double tourism revenue from the current USD 1.4 million to USD 2.8 million annually in the next three years.
Ends
Writes Leo Odera Omolo In Kisumu City
BUSINESS people as well as horticultural farmers in Western Kenya have good reasons to smile for the Kisumu Airport is complete and ready to handle more passengers and cargoes.
The Kshs 3.3 billion new facilities are ready for use. The extended Kisumu Airport now confirmed that the lakeside city is the true gate away to East Africa.
The horticultural farmers and exporters now stand to benefit a great deal because the facility will now offer them quick aerial shipment of their products to any destination in the world.
THE Kisumu Airport manager Mr Joseph Okumu told newsmen that the airport is now ready to welcome receive and see big planes.
”We have already shifted our operations to the new terminal. All the airlines currently flying Kisumu route have been allocated new offices at the new terminal. There are still more spaces for new airlines expected to come.”
The Kisumu Airport whose upgrading work started in 2008 will now be able to accommodate big planes like the giant Boeing 737.
The new facility boast modern control tower and terminal with several lounges for arrivals and departure, cargo handling facilities, the passengers cafeteria, VIP lounge and offices. The airport will also later this month, have new international departure and landing facilities.
The manager revealed that the terminal facility is already attracting inquiries from airlines keen on using Kisumu route to international destinations.
He further disclosed that direct flight from Johannesburg in South Africa will soon be operational. Currently the airport has three international routes which are operational. These include Kisumu-Entebbe, Kisumu -Musoma, Kisumu-Mwanza and Kisumu -Addis Ababa.
The completion of the Kisumu Airport now makes it Kenya’s fourth international airport after Nairobi’s Jommo Kenyatta International airport , Moi International Airport at Mombasa and Eldoret international airport at Eldoret.
Business people in Kisumu and its environs have expressed their gratefulness and hoped the expanded facility will now opens the way for investors and particularly the revival of the forty five year old sleeping Western Kenya Tourist Circuit, which was launched in 1967, but which has remained in the drawing board ever since.
Currently fish and flowers from the Western Kenya regions are transported by road to Nairobi resulting in many losses in terms of time lost, wastage and added transportation costs.
For the much expected improvement in tourists visiting the region, the business community in Kisumu Town have successfully put up dozens of medium sizes luxury hotels making he City to be self-sufficiency in hotels.
Apart from the Imperial, Sunset and New Kisumu Hotels, there are several new facilities such as the Great Lakes Hotel, Kisumu City Royals.Lakers,Vunduba, Lakeview. There are close to seven new medium size hotels led by Kisumu Milimani Resort and others ready to supplement the hotel bed accommodation in the town.
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from Lee Makwiny
The third busiest airport in Kenya has seen a transformation from domestic to international standards, raising hopes it will spur regional economic growth and lower the historic poverty levels.
The airport’s apron has also been expanded, and a new terminus that can attend to up to 700 passengers per hour was built. The terminal has the ability to check in passengers for eight flights simultaneously.
Although the airport was intended to be completed in 22 months, construction works were delayed due to constant wrangles between the Kenya Airports Authority and members of the clan, who live in areas surrounding the airport.
The completion of the construction works at the airport sparks new hopes for investors in the western region, who are optimistic that the expansion and upgrading to international standards will boost the region’s economy by opening up new business opportunities.
Farmers and businessmen have started introducing new crops, products and investments in preparation for the commissioning of the airport and introduction of cargo flights.
Earlier this month, the authority unveiled a new raft of investment opportunities, which included provision of aviation fuel, ground handling services and the management of an automated car park.
“We are now focusing on enhancing new business opportunities and encouraging people to open up more,” KAA managing director Stephen Gichuki said during a stake holder’s business forum in the lake side city.
After commissioning, Kisumu International Airport will have large aircraft like the Boeing B737 and B767 landing safely.
The third busiest airport in the country has recorded steady growth in passenger numbers. In December last year, passenger numbers increased to 24,271 up from 16,989 in 2009.
The expansion which has lasted two years is expected to offer an estimated 30,000 jobs and boost bilateral trade.
Apart from the direct earning expected from businesses and employment, Nyanza Province and the whole of western region expects to receive a higher number of domestic and foreign tourists.
Locals also enjoy enhanced security while value for land adjacent to the facility has appreciated tremendously.
Several construction projects have also sprung up around the facility while numerous hotels have been built or are under construction within and around the lake side city.
Even nearby towns like Ahero are now feeling the growth ahead of the commissioning of the new facility which will greatly open up the region for serious business with the rest of the world. Fish, horticultural products will now be exported directly to Europe and other world markets.
During a visit to the facility earlier this month however, the PS Cyrus Njiru of the Ministry of Transport said that the facility will not hold cargo flights yet, but collaboration between several stake holders would speed up cargo handling facilities and the emergence of cargo flights.
“The second phase of the airport expansion will concentrate on handling cargo flights, being the biggest need of the area that requires economic growth and poverty eradication” Mr Njiru said.
“We can now proudly say that the airport expansion and upgrading has been successful despite the various challenges that the Ministry and the Kenya Airports Authority faced” Mr Njiru said.
The PS attributed the delay in completion to the need to meet international standards and expectations of travellers, now that the facility was being transformed.
“The government needed to deliver a fist class international airport and fit it in the class stipulated by Vision 2030,” Mr Njiru said.
--
BY Dickens Wasonga.
The 3 billion shillings Kisumu International Airport upgrading project whose construction attracted a lot of controversy three years ago when it was launched will now be officially operational by the end of May this year.
This follows the successful completion of the upgrading works carried out by the China Overseas Engineering Company COVEC, which won the tender in October 2008 to do the project funded by the government of Kenya and the World Bank. It was expected to last just 22 months.

Local MPs led by the transport minister Amos Kimunya tours the facility last year.
Giving highlights of the progress of the project so far to journalists in Kisumu the Airport manager Mr. Joseph Okumu said the project delayed by a few months after the initial works which included extension of the current runway by just a kilometer to two was changed to 3.3 kilometers by 45 meters wide.
Mr. Okumu said even the terminal building which was originally designed to have just the ground floor was modified to include mezzanine floor in order to accommodate more passengers and give room for additional commercial opportunities that will come with the new facility.
According to him, a lot of improvement works was undertaken alongside the main project. He gave the example of the improved navigation facilities which saw a state of the art -very high Omni directional Radio Range facility installed.
In order to fit into its new international status, the airport administration has been organizing a lot of training of the personnel at the facility.
Recently over ten of its crew drawn from the fire and rescue departments were taken through a course on diving skills.
Procedures have also been enhanced to meet set standards and the facility now have a marine rescue committee and not long ago it put to test its emergency procedures by holding an emergency drill where all the relevant agencies participated.
The manager added that all the airport staff have also undertaken a cause on safety and security awareness and were now better prepared to handle safety and security concerns of the passengers whose numbers are expected to rise soon.
The airport has a capacity to handle 3000,000 passengers per year at the moment but it will handle additional 2million passengers for a similar period upon upgrading.
When complete the new terminal will be handling both domestic and international passengers of an estimated 700 per hour.
Growth in number of passenger has been witnessed since the upgrading began at the airport and today it has daily flights to Mwanza and Entebbe together with an increased chartered operator flights.
Jet link, Fly 540 operating in conjunction with East Africa Safaris Express and national carrier Kenya Airways currently has scheduled fights.

The Jet Link plane during the launch of additional flights to Mwanza and Entebbe late last year.
‘’They have all increased their frequency with Jet link operating 6 flights daily, KQ 4 and Fly 540 doing 3’’ said Okumu.
Amongst other facilities the new terminal will have dedicated water and power supply system and a state of the art stand by generators.
Modern safety and security equipment, modern passenger processing facilities, business class lounges, and self service customer kiosks for departing clients will be available.
Aircraft hanger for maintenance of aircraft which was previously lacking will also be included and taxi operators and other motorists will now enjoy automated car park facilities.
Air craft such as Boeng 767 or Airbus 300 and 310 will now be able to land or take off at the upgraded facility.
There will be several business and rental opportunities which will be offered to interested business people in competitive tenders. The Kenya Airports Authority will soon advertise the opportunities to the public through the local dailies.
The opportunities will include ground handling cargo transit sheds, fuel firms, car park management, airport advertising and flying schools. Others will include duty free shops, restaurants amongst others.
A lot of jobs will therefore be created directly or indirectly to several jobless people not only in Kisumu but throughout the region.
The manager disclosed that more airport staff will be hired by KAA. Some will be absorbed to work as customer service personnel, safety and security staff, operational and maintenance staff, etc.
‘’We expect to have more airline staff, more taxi operators while parastatal and other government ministries or agencies such as KRA, immigration, KEBS will now have to post their teams here. Horticultural companies, additional health staff and medical personnel, more caterers and ground handling staff will be required’’ he added.
People have already reaping huge benefits from the airport project which initially faced a stiff opposition from the members of Kogony clan on whose land the upgrading work were to be done.
Many have since been compensated for the land acquired by the project and some now live in permanent houses constructed from the proceeds of the sale of land.
Locals also enjoy enhanced security while value for land adjacent to the facility has appreciated tremendously. Several construction projects have also sprung up around the facility while numerous hotels have been built or are under construction within and around the lake side city.
Even the sate light towns as far as Ahero are now feeling the growth ahead of the commissioning of the new facility which will greatly open up the region for serious business undertakings with the rest of the world. Fish, horticultural products will now be exported directly to Europe and other world markets.
Other beneficiaries are those currently residing in sprawling Kisumu slum areas of Bandani, Riat, Obunga and Otonglo which neighbor the airport which are currently under slum upgrading program.
A modern school is being established at Usoma. The modern primary school with a capacity of 500 pupils is near completion and was built at a cost of KSH 20 million from KAA. Its second phase will cost slightly more.
Access road is also under construction to link the airport and the Kisian junction and will help to rehabilitate the now dilapidated section between Kisian and Otonglo.
‘’This facility will be an added advantage in several fronts. It will be a major economic boost not only to the people around here but even into the national economy.
Tourism will get a boost as well as more international visitors land to sample the local culture and tour some of the numerous attraction sites within the western Kenya tourism circuit.’’ Said Okumu.
ENDS.
News Analysis By Leo Odera Omolo.
DETAILS of information emerging from the Tanzanian capital, Dar Es Salaam say several international airlines may be headed for more than millions in suspension related losses as series of explosions two weeks ago triggered flight cancellation following the closure of Julius Nyerere International Airport.
The government is reported to have already launched investigations into the series of explosions at the Tanzania People’s Defense Forces {UPDF} ammunition depot sin Dar Es Salaam that forced international airlines to cancel all flights to Tanzania.
The Supreme Security Council the country’s top military security organ under the Commander-In-Chief was reported last week to have held an emergency security meeting in the capital and deliberated on the issue.
Tanzania has also tightened security along its borders with the neighboring countries on the land and on its Indian Ocean coastline.
The 22 ammunition depots in the army Gondo La Mboto military camp caused the death of at least 30 people, with many more left injured.
Planes belonging to Swissair, Egypt Airlines, South African Airways, Precision Air Services, and Fly540 were among those grounded at the international airport pending further information from the military as City’s sky was lit up by flying debris and missiles.
All the incoming flights were being diverted, either to Nairobi, Mombasa, Kilimanjaro International Airport in Arusha, or to Zanzibar airport, during the night hours as explosion rocked the city near the international airport.
Debris showered parts of the city up to 15 kilometers from the Gongo La Mboto military bases, which is located in the outskirt of Dar Es Salaam. It was the second such military accident in recent times, after another explosion at Mbagala Military base in 2009 in which 20 people including four military officers lost their lives.
A Turkey Airlines and Precision Air flights were last week diverted to Nairobi whereas a KLM was sent to Kilimanjaro Airport in Arusha. A plane belonging to Comair flight, a subsidiary of the British Airways flying in from South Africa was forced to return to South Africa, Ethiopia Airline and Qatar Airlines cancelled all the flights to Tanzania pending safety assurances from the Tanzanian government.
The TPDF’s Chief of the General Staff Lt. Gen Abdulrahaman Shimba was quoted as saying that that the army had yet to establish the root cause of the explosions, adding that the authorities have started investigations into the cause of the explosion and the extent of it caused o the army and to the public.
The ammunition depot explosions, started on Wednesday evening in a series of blasts which leveled homes and destroyed many properties.
The Prime Minister Mizengo Pindo went on the air and said that several homes and a school were leveled. He added that at least 4,000 people have been rendered homeless and were still sheltering at the Uhuru National Stadium.
Army ammunition depots explosion have occurred in the past in the United Kingdom, Russia, Brazil, Nigeria and Pakistan.
According to military experts, the causes of such accidents include design faults, poor storage control, movement of ammunition, equipment failures, in-service deterioration, errors in building and errors in drill.
In 2002 an accident at ammunition depot at the Ekeja military base caused series of explosions, sending fireballs into the sky over Nigeria’s commercial capital. Lagos. The blast rocked the outskirts of the northern port city and shattering windows in buildings several kilometers away and caused a lot of panic.
In 2009 at least eight people were killed in an explosion at the arsenal 31 ammunition depot on the outskirt of Ulyanovost, 900 km south of Moscow, Russian.
Ends
From: Eric Wabwaya Mburi
Canadian authorities were trying to determine on Friday how a man believed to be in his 20s was able to board a flight in Hong Kong to Vancouver having disguised himself as an elderly passenger
The young man, who was arrested when he arrived in Canada, boarded an Air Canada flight on October 29 wearing a realistic silicon head and neck mask that made him appear elderly, according to media reports and photographs.
A spokesman for Canada's public safety minister confirmed the incident but declined further comment. The man requested asylum in Canada when he arrived, which prevents officials from disclosing his name or where he is from. He is now being held in custody.
The man was able to board the flight apparently without a passport or any other documents with a picture or date of birth. He carried the boarding pass of a U.S. citizen who was booked on the flight.
Although the young man is of Asian origin, the intricate disguise made him look like a very elderly Caucasian.
"It is believed that the subject and the actual United States citizen passenger, whose date of birth is 1955, performed a boarding pass swap," according to a Canadian Border Services Agency security alert obtained by CNN.
An Air Canada spokesman said the issue was under investigation by Canadian authorities, but said there are multiple identification checks for passengers in Hong Kong - including one by the Chinese government.
Transport Canada is investigating if screening regulations were broken. It is the responsibility of airlines to verify the identity of passengers who appear to be 18 years or older before they are allowed on the aircraft.
"That means air carriers are supposed to look at a passenger's entire face to determine if they appear to be over 18 and if so, compare their physical appearance with their travel documents," said John Babcock, a spokesman for Transport Minister Chuck Strahl.
The man went into the airplane toilet midway through the flight and removed his disguise, according to the CBSA alert which noted the impostor did not attempt to disguise the age of his hands.
A search of the man's luggage uncovered gloves and a "disguise kit," according to the alert.
(Reporting Allan Dowd; editing by Rob Wilson)
Ja'kamburi
Writes Leo Odera Omolo
PRESIDENT Yoweri Museveni has stopped the sale of land belonging to the East African Civil Aviation Academy (Soroti Flying School).The NEWVISION reported this morning.
The aviation school is the proiperty of the East African Community.It was established in the late 1960s by the defunct first East African Community, which collaosed in 1977 following sharp political and ideoilogical differences between the presidents of Tanzania, Uganda and Kenya at the time,
The land has been under dispute between the academy and the Uganda Land Commission. While the academy argues that it needs the land to expand, the commission went ahead with the sale.
“We have plans to lengthen the runway, which is now 1,800 metres. We need it for our aviation plans,” Museveni told a gathering at the academy on Wednesday.
The Government plans to rehabilitate and upgrade four airfields into airports. They are Soroti, Gulu, Kasese and Arua. A new airport is to be built in Ntugamo at Rwentobo, Museveni said.
“Going through Entebbe interferes with business, especially when somebody is in a national park like Kabalega and has to come to Kampala (to fly out), instead of Gulu. Uganda is developing fast, exports will pick up. We need to expand air infrastructure.”
The President, who launched six new Skyhawk aircraft, said training pilots is expensive, especially in Africa, where training facilities are inadequate and most governments invest little money in it.
“The weaknesses come because some ministries don’t know how to prioritise. There is no money to cover all matters but when it comes to prioritisation, there is no way we can fail to rehabilitate an academy like this one. The academy will be rehabilitated and developed fully,” he announced.
He said pilots for civilian airlines and for the army are on high demand and advised the trainees to be disciplined and avoid alcohol and prostitutes.
According to the academy’s acting director, B.D. Wandera, sh17.5b is needed for basic rehabilitation and re-quipping the school.
He said the academy had got six new single-engine aircraft and was replacing old asbestos roofing with pre-painted iron sheets. Training has been hampered by inadequate funds. Night training is also impossible for lack of appropriate lighting.
The Inspectorate of Government is investigating the sale of the land. The sale came into the limelight in August when MPs from Teso sub-region petitioned the Prime Minister, Apolo Nsibambi, to halt the transaction.
In September, Nsibambi ordered the land commission to stop the sale of staff houses and land belonging to the school.
A total of 31 housing units were to be sold off. They are located on Kyoga Avenue, and on Harper, Komollo, Bisina and Esunget roads in Soroti town.
Ends
Reports Leo Odera Omolo
PRESIDENT Yoweri Museveni has called for a no-fly zone to be imposed over Somalia in a bid to curb the influx of arms and the terrorism activities in the war-torn country.
The President made the call yesterday during a closed-door meeting with the 15-nation team from the UN Security Council.
He proposed that the no-fly zone be enforced by the big powers which have aircraft carriers based in the Indian Ocean.
“If such a move is implemented, it will reduce the influx of arms in Somalia by over 70%,” Museveni reportedly told the delegation. The delegation was led by Uganda’s permanent representative to the UN Security Council, Dr. Ruhakana Rugunda.
Museveni also told the delegation that the countries that are willing and capable to send troops to the Horn of African county should be supported, and that those which cannot provide troops should fund the operation.
He reportedly told the meeting that the insurgencies fighting the African Union Peacekeeping Mission in Somalia (AMISOM) are not Somalis but al Qaeda insurgents from Afghanistan, Pakistan and Yemen.
At a press conference after the meeting, Museveni reiterated Uganda’s commitment to send more troops to Somalia.

Museveni (centre) with the security council team and Ugandan government officials at State House, Entebbe
He said it was the duty of the international community to help Somalia regain its sovereignty.
The President called for financial support to increase troop levels in the AMISOM. Uganda and Burundi are the only countries that have contributed troops to Somalia, with Uganda contributing the highest number.
“The number of troops is not the problem. If there is everything we need, we can raise the number but they (rich nations) must bring the money,” the President said.
The UN delegation, which was in Uganda for a one-day tour, was not specific on the kind of support it would give to AMISOM. The team later left for Sudan, where it will visit Juba, Darfur and then Khartoum.
Museveni warned the team against any delay in holding the referendum to determine the autonomy of Southern Sudan. He urged the UN to put in place the structures needed for a free and fair referendum in Sudan slated for January 2011.
“The referendum is very crucial and delaying it is highly risky. It is better to involve the UN in the organisation rather than waiting to see what happens after the results,” Museveni reportedly told the delegation.
He pointed out that the African Union did not support the International Criminal Court’s indictment of President Omar El Bashir because they thought it would jeopardise the peace process in Sudan.
Museveni also dismissed a recent UN report on DR Congo that accused Uganda of several human rights abuses and war crimes during the conflicts in the 1990s as a “concoction and lies.”
“These international groups are fictional writers. They should look for other subjects,” he said.
Museveni defended the army, saying it followed a strict code of conduct and could not torture civilians.
Ends
Writes Leo Odera Omolo
As the East African Community (EAC) common market gains momentum, efforts are underway to enhance aviation security standards to boost the industry and trade in the region.
To this effect, the EAC Civil Aviation Safety and Security Oversight Agency (CASSOA) has established offices at the Entebbe International Airport to serve as a focal point for the five states in the regional trading bloc.

Kategaya (right) launches the regional aviation headquarters as Nasasira cheers David Ssempijja
CASSOA is a specialised agency that ensures the development of a safe and secure civil aviation industry in the region.
“Efforts geared towards meeting aviation safety and security will make our airports and airspace safer.
“This will attract more airline operators into the region, hence a booming regional aviation industry,” said the EAC affairs minister Eriya Kategya.
He was launching the regional headquarters at Entebbe last week. He said East Africa had a challenge of meeting the standards of the International Civil Aviation Organisation.
“As you are aware, our region’s airspace is at times regarded as insecure, especially by the western world,” he said. John Nasasira, the transport minister, and regional aviation chiefs attended the function.
Ends
THE MULTIMILLION DOLLAR SCANDAL, INVOLVING THE BRITISH FIRM AND THE SUPPLY OF AVIATION RADAR TO TANZANIA COMES BACK TO HAUNT
Investigative News Writes Leo Odera Omolo
Information emerging out of the Tanzanian capital, Dar Es Salaam says that the country is at crossroads, wondering whether to investigate afresh an international corruption case involving British arms manufacturers BAE system.
This came about after the company had allegedly admitted it was guilty of dubious financial dealings in its sale of a USD 46million Watch Air Traffic Control System to Tanzania.
BAE Systems, it was reported, admitted there were malpractices received as payment in the deal.
In its latest edition, the EASAFRICAN weekly quoted the company chairman, Mr.Dick Oliver as saying in an exclusive interview that “Under the agreement with the Serious Fraud Office {SFO}, the company will plead guilty to one charge of breach of duty to keep accounting records, in relation to payments made to a former marketing adviser in Tanzania.
“The company will pay an agreed penalty of 30 million sterling pounds {USD 46 million}, comprising of a fine to be determined by the court, and the balance as a charitable payment for the benefit of Tanzania".
But back in Tanzania, senior officials of the Prevention and Combating of Corruption Bureau {PCCB} and the Ministry of Justice, were reported to be tight-lipped on whether to continue with fresh investigations or not.
Last week, UK’s Serious Fraud Office {SFO} allowed BAE to plead guilty in a London court to the offence of selling to Tanzania a 28 million pounds air traffic control system, and yet requesting for USD 46 million in payment.
The SFO then dropped its charges against those involved in scandal, who included Tanzanian officials Anbdrew Chenge {then the Attorney General} business tycoon Tanil K.C Somaiya of Shivacom and one Shailesh P.Vithilan.
In court, they were accused number six, eight and nine respectively. Accused number seven is not mentioned on the charge sheet.
Mr Chenge was later appointed a minister for Infrastructure Development in the President Jakaya Kikwete administration. But he resigned after SFO implicated him in the scandal, with claims alleging that he had received 1.5 million sterling pounds from BAE as “Kick Backs”.
The World Bank and the International Civil Aviation Organization –before and after the purchase of the system –said it was unnecessarily overpriced.
The PCCB investigation was however largely dependent on SFO findings, meaning the country will have to conduct its own probe.
This viewpoint is supported by the Deputy Leader of the official opposition in the National Assembly, Dr Wilbrod Slaa. And the SFO has been actively investigating the USD 39.5 million {Tshs 53.billion} contract signed in 1999 to supply a radar system to Tanzania.
The probe also relates to payments of USD 12 million to Shailesh Vithilan, BAE’s former marketing adviser based in Dar Es Salaam.
A six year investigation by SFO identified key roles played in the radar deal by Mr.Chenge, the former AG, and Dr. Idris Rashid, the then Bank of Tanzania governor.
PCCB public Relations Officer, Doreen Kapwani, was quoted last week as saying that they were yet to issue a comprehensive statement on the matter.
Tanzania Minister for Justice, Mathias Chikawe, also declined to offer any comment. But by pleading guilty under section 221 of the companies Act,1985,BAE will not face an embarrassing court case.
Last month, Uganda civil aviation authorities demanded payment back for a dummy radar, which was purchase before the summit of the Commonwealth Head of States and Government {CHOGM] in November 2007, which has since then ceased to operate.
Ends
leooderaomolo@yahoo.com
MORE INTERNATIONAL FIRMS INVITED TO BID ON AIR TANZANIA.
Business News By Leo Odera Omolo.
Tanzanian government is reported to be eying for more bidders for its financially strapped national carrier, Air Tanzania.
The government wants it revived so that it could take advantage of the fast growing air travels market in East, Central and Southern African regions, as well as take advantage of the exploding Chinese population in East and Central Africa.
The government has now decided to invite more international firms to vie for a stake in the ailing airline, despite having already entered the final stage of two-years negotiations with a Chinese firm, China Sonangol International Holdings, to buy a controlling stake in the ailing Air Tanzania Corporation Limited.
According to sources in Dar, the state owned national carrier last month cut its workforce by 155, amid talks of a partnership with China Sonangol. Only 182 employees remain on the job. It cited overstaffing and accumulated staff wages as the reasons for the layoffs.
The envisaged plan has been confirmed by the Permanent Secretary in the Ministry of Infrastructure Development, Omar Chambo, in an interview published this week by the influential regional weekly, the EASFRICAN, in which he is quoted as having disclosed that talks between the government and the officials from China Sonangol International Holdings are at an “advanced stage”, without offering any further elaboration.
The PS further disclosed that the negotiations with the Chinese firm do not bar the government from looking for other investors, and that already, several other companies have shown interest in the carrier. However, he declined to name the other firms and their number, only saying this could jeopardize the discussions.
According to Chambo, the government of Tanzania wants to see Air Tanzania revived and brought back to take advantage of the fast growing markets like the Democratic Republic of Congo, Zambia, China and Malawi.
But observers and critics alike say the government has not kept its word on giving Air Tanzania full support, since the firm broke ranks and parted ways with the South African Airline {SAA} in 2006.
Air Tanzania Corporation Ltd, formerly known as Air Tanzania Corporation, was privatized on December 2, 2002, in a deal in which SAA acquired 49 per cent shares in the firm for USD 20 million, which largely went into shareholding, with the rest going into capital and training accounts.
And last week , a US firm, Celtic Capital Corporation of Texas, said it was ready to take over the operations of Air Tanzania.
Five firms based in the US, the UK and the United Emirates have also shown interest in running the cash-strapped airline.
According to other reports, in August 2008, the Tanzania government held secret discussions with the Chinese Development Bank to sell the 49 per cent shares acquired back from SAA to a Hong Kong based private firm, with a view to reviving the ailing airline.
In the deal, China Sonangol International Holdings was expected to fund the operations of the airline that is now struggling to regain its reputation and position in the regional and international market.
The EASTAFRICAN also quoted the chairman of Sonangol International, Sam Pal as saying that China Development Bank would be funding the takeover of Air Tanzania, but bureaucracy has delayed the takeover.
Mr Pal disclosed in the report that the Sonangol has already started the construction of Terminal Three of Julius Kambarage Nyerere international Airport in Dar Es Salaam, and is working on expansion of the airport.
Sonangol said it has already bought an Embarer fleet for Air Tanzania.
China Sonangol International Holdings Holdings Ltd, which was established in 2004, mainly engages in oil, gas and mineral investment and exploration, crude oil trading and large scale national reconstruction projects.
Headquartered in Hong Kong, the company also deals in chartered airlines in Angola, the US and the UK.
Ends
leooderaomolo@yahoo.com,