Writes Leo Odera Omolo

The recent upsurge in the sweeping waves of the Chinese businessmen in the East African market may soon come to an abrupt end following allegations and claims that a Chinese firm had sold obsolete aircraft to the Tanzania national carrier.

One of the plane crushed within weeks after the delivery to the Air Tanzania Corporation Limited {ATCL}.

Of late the Chinese construction companies are on the lead clinching nearly all the major roads construction contracts in Kenya, also been accused in certain quarters of doing shoddy works.

The Chinese firms win the tenders after corrupting their way through the top government officials.

They have since replaced the traditional construction companies from Western European countries,which used to handle major road construction projects in the region.

In the latest development,. China Sonagol International Holdings limited, the Chinese government investment firm has been plunged into fresh controversy following recent startling revelation that it procured obsolete aircraft for the Tanzania national flag carrier.

On of the three aircraft purchased by China sonangol, a Dash 8-300 series operated by ATCL crushed in April this year at Kigoma Airport in Western Tanzania injuring85 passengers and four crew members.The aircraft is now a write off.

This information has come to the surface following a detailed report by the Controller and Audit General released last week says that China Sonangol ltd as the lead investor in ATCL, with 49 per cent stake in 2007 leased two second hand aircraft contrary to the memorandum of understanding entered with the Government of Tanzania that same year,after the breakup of the partnership with the South African Airways in September 2006.

The planes were bombardier Dash 8-Q300 and an Airbus A320-214 that was all of ten years old in January 2009,the Airbus A320 underwent a check D, also known as a heavy maintenance visit, which is done after every four to five years.

Subsequently in July 2010, the aircraft was returned to the lessor, a Lebanese firm, Wallis Trading Company. The government on paper incurred a loss of USD 39 million on the lease of the Airbus, which according to the report did not fly, but the report further shows that the debt accumulated from the transactions with the two Lebanese firm rose to Tshs 322 {USD 200 million}, enough to purchase three brand new Airbuses of the same series.According to Airbus aircraft 2012 average prices,the purchase order price of a brand new Airbus 320 series is USD 88.3 million.

The Controller and Audit General Lodvick Utpouah says thwqt the government involvement in business decision making at ATCL is a serious problem.

Uto says that the parties involved in the acquisition of two Dash 8-400 series aircraft that are currently being operated by ATCL were the government and China Sonangol and the airline’s board of directors and management were not part of the negotiations.”They were only informed of the decision to procure the two aircraft and asked to advance USD 500,000 as commitment,” he says. Mr Uto has now recommends that the government officials who participated in the controversial Airbus A3200-214 leasing deal be taken to court and prosecuted for forcing ATCL I the first place ATCL exists as a private company wide section three of its article of association,” he writes, add9inbg that its governance,organizational structure and business processes are therefore to be viewed from a private prospective rather than than that of a public company.

He CAG’s report also notes that ATCL has for the past year been operating without a board of directors to oversee its operations and activities.When the previous board of directors tenure expired in March 2010,another board was not instituted until August 2010 when the government extended the tenure of the old board to March 31 2011,that has no board of directors in place ,”said the report.

Ends