Writes Leo Odera Omolo
Reports emerging from Dar Es Salaam says Tanzanian MPs are up in arms and seeking the mandate of the House Speaker to allow the House Committee on Energy and Minerals the authority to launch a full scale investigations into the alleged fraud and bribery involving the purchase of fuel for an independent power generating firm.
Sources alleged that millions of dollars paid to purchase fuel for the Independent Power Tanzania Limited {IPTL plant, which is located in Dar E Salaam could have been swindled,
Legislator Zito Kabwe the chairman of the Public Corporation Accounts Committee was quoted by the local media as saying that legislators want the committee to probe several oil supplying firms and government officials over the deal that forensic expert say could see the government losing more than USD 54 million for fuel that was never supplied to the plant.
According to Kabwe, there was allegations of fraud and corruption among officials of the Ministry of Energy and Mines.
The legislator said that there were also doubts regarding whether the tender procedure was followed according to the Public Procurement Act of 2004
The government in November2010 used the emergency tender system to allow two oil-supplying firms, Oryx Oil and Total, to import fuel for the generation of the IPTL plant, which is located on the outskirt of Dar Es Salaam.
The government was spending approximately Tshs 15 billion {USD 10 million} every month from November 2010 to February 2011 for the purchase of fuel meant for IPTL operations.
January Makamba, chairman of the Energy and Minerals Committee of Parliament who is an MP fro the ruling CCM party, said the committee is still waiting to hear from the Speaker. He said the committee would not be able to start investigations without the authorization of the House Speaker.
“There have been complaints concerning the tender, leading to suspicions of corruption among officials at the Ministry of Energy and Mineral, but we cant start investigation right now; as a procedure, we need to have permission fro the Speaker,” he added.
The government estimates that at least USD 54 million meant for the purchase of heavy fuel oil for IPTL may have been stolen.
The private firm’s multimillion-dollar 100MW power supplying contact with the Tanzania Electricity Supply Company, Tanesco, has dogged by controversy throughout.
A new audit report details wasteful procedures and overvaluation of supplies of heavy fuel from a local oil firm.
The Energy and Mineral Minister William Ngeleja said in parliament last that the government spent Tshs 46 billion {USD 28.7 million}to purchase oil for IPTL plant from November 2010 to February 2011.
The power crisis currently facing the country has compelled Tanesco to pay Tshs 19.2 billion {USD 12 million} to IPTL every month for production o 60mw instead of the initial production of 100mw.
In 1995,Tanesco signed agreement with IPTL, a joint venture between a Malaysian firm, Mechmar Corporation, and a local investor, VIP Engineering and Marketing Company Ltd for the purchase of 100mw of power from diesel generators for 20 years.
VIP Engineering owns 30 per cent equity while Mechmar Corporation of Malaysia owns 70 per cent.
Ends