Showing posts with label CORRUPTION. Show all posts
Showing posts with label CORRUPTION. Show all posts

19 Aug 2010

I came across an article below in The Moscow Times of today (“Financial Investigator's Son Handles Cash for Aeroflot”) and thought it would be appropriate to rekindle the discussion on Nepotism in Tanzania we had with you a while ago, see my email of Aug. 11th herein under. Before that, in July this year, I made similar comments about the son of the former Russian prime minister {Mr. Mikhail Fradkov - now Head of the Russia’s Foreign Intelligence Service (SVR)}, Mr. Peter Fradkov, who is currently the deputy chairman of Vnesheconombank (Russia’s State Bank for Foreign Economic Relations) and also the deputy chairman of the African Coordinating Committee for Economic Cooperation with African Countries (AfroCom). See in the Aeroflot article mentioned above (read the yellow-shaded part below) on how other senior Russian government officials place their off-springs in honey places, a similar trend currently appearing in Tanzania, albeit at times we see off-springs of our officials involved in fraudulent crimes as you may read in the article below on the son (Tony) of CCM stalwart Kingunge Ngombale Mwiru (“Kingunge relative in the dock for forgery, 242 million/- theft”). As I wrote earlier, I don’t think putting kids and relatives of bigwigs in high places based on kinship only and not merit is a wise thing to do. Indeed, it is very dangerous and speaks a lot of the unhealthy political situation in a country as well as the existence of an incompetent and ineffective government .

Best regards,

Shaaban

Moscow, Russia

20 May 2009


Government axe to fall on luxury spending

*Budget procuring of government vehicles to be strictly prohibited, Cut down of maintenance and running cost of vehicles .
*Funds to be saved in the process will be channelled to financing core activities

By Ray Naluyaga

The Government plans to curb luxury spending in the next Budget, as part of its comprehensive measures to cut costs, the Treasury says.

The implementation of the proposals will see a 10 per cent expenditure ceiling on the administrative costs of funds allocated for development projects.

The measures, according to the ministry of Finance, also reflect the Government's intention to ensure effective use of available resources.

Also targeted in the expenditure control and cost reduction is the tendency in the Government to buy luxury vehicles for use by civil servants, the proliferation of seminars and workshops, allowances, trips by public officials and spending on government hospitality.


The Treasury says allocations to those areas will be reduced and the saved funds channelled into financing core activities. And accounting officers have been instructed to strictly scrutinise and vet such expenses.
There will also be regular inspections of public sector payrolls to, among other things, ascertain their authenticity. This will also ensure that employees removed from the payroll for any reason,death, retirement or dismissal stay off it.

Two experts interviewed yesterday commended the Government move. An activist for good governance, Mr Moses Kulaba, said recurrent expenditure items constituted up to 70 per cent of the total development project budgets.

Deloitte senior tax manager Edward Mwachinga said the expenditure on "managerial issues has been a double tragedy for the national Budget, with seminars and workshops wasting a lot of time and resources.

Those activities, he added, took people away from their workstations with no value being added to their productivity in the end. As result, he said, they were, in fact, inhibiting productivity.
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"While recurrent expenditure items can't be completely avoided in development projects, to cater for administrative costs, accounting officers are required to ensure that such costs do not constitute more than 10 per cent of total project cost," the Treasury notes in its Budget preparation document.

The Medium Term Plan and Budget Guidelines for 2009/10 -2011/12 says that many development projects constitute more recurrent items than the development ones. That, the document explains, has greatly contributed to failure to implement or complete some projects.

In the forthcoming budget, project funding is forecast at about Sh2.8 trillion, up from Sh2.4 trillion in the current financial year. This time around, local funding of development expenditure will be Sh1 trillion instead of Sh940 billion during 2008/09.

"In ensuring accountability in using public resources, accounting officers are required to adhere to the approved budgets," the Treasury says.

"Ministries, departments and agencies (MDAs), regions and local government authorities (LGAs) will have to exercise a high degree of financial discipline."

According to the document, the procuring of government vehicles "is strictly prohibited". Until further notice, it adds, no funds should be allocated for buying vehicles in the next financial year. Another measure to cut cost is the reduction of maintenance and running expenses of vehicles.

Seminars and workshops have been singled out as one of the items costing the Government dearly, thus contributing to increased expenditure. The Government has conceded that many of these are �unnecessarily conducted in expensive hotels".


Those that will be held after getting approval from the Prime Minister's Office will now be hosted in public institutions, according to the new directives.

"Starting from this financial year, accounting officers are required to seek approval to conduct seminars and workshops from the Prime Minister's Office," the Treasury says.

On per diem and travel allowances, the Government says, accounting officers must ensure that every expenditure incurred has value for money. The only foreign trips that will be authorised will be those of national interest, and which reflect the expected returns.

Furniture bought should be of high quality. The Treasury advises against the tendency to procuring expensive imported furniture that is less durable than locally made items. The Government also expects to curb costs in the public procurement and management.

"A big portion of public expenditure is on procurement of works, goods and services. Accounting officers and public procurement units should take measures to improve supervision and monitoring of purchases."

Deloitte tax manager Mwachinga said that under the current circumstances, the Government had had no choice but to initiate cost cutting measures.

"Taxpayers' money has for many years been used to pay public officials' fat allowances to attend seminars and workshops in expensive luxury hotels where what they do is have a good time," he said.


Mr Kulaba warning the Government against failure to implement the cost-cutting measures, as had been the practice in the past. However, he welcomed the zeal with which Prime Minister Mizengo Pinda has been dealing with the matter to curb wastefulness in the Government.

SOURCE: The Citizen.Cartoons courtersy of Kipanya



HOW OFTEN HAVE WE HEARD THAT?DIFFERENT BEATS BUT SAME LYRICS.ONLY EXCUSE NOW,THE CURRENT GLOBAL FINANCIAL CRISIS.THAT'S SIMPLY ALL TALK,BUT DON'T EXPECT ANY SIGNIFICANT ACTIONS.

COST-CUSTING MEASURES SHOULD HAVE BEEN GOOD NEWS TO EVERY MWANANCHI,BUT WE HAVE BEEN THERE BEFORE.REMEMBER WHAT WE WERE TOLD AFTER THE 1978-79 TZ-UGANDA WAR?"TUFUNGE MIKANDA" (WE SHOULD TIGHTEN OUR BELTS).IRONICALLY,MOST OF OUR LEADERS COULDN'T DO SO NOT BECAUSE MADUKA YA KAYA HAD RUN OUT OF STOCK OF BELTS,BUT RATHER THEIR WAISTS WERE TOO LARGE TO BE TIGHTENED!HOWEVER,IN THE SPIRIT OF AMANI NA UTULIVU AND UMOJA NA MSHIKAMANO THE MAJORITY OF US (WALALAHOI) HAD TO DO IT FOR THE PRIVILEGED FEW (VINGUNGE).

OKAY,WE COULD AGREE TO ADHERE TO WISDOM OF OUR FOREFATHERS THAT "YALIYOPITA SI NDWELE,TUGANGE YAJAYO" (LET BYGONES BE BYGONES),AND AGREE WITH THE PROPOSED MEASURES.BUT,COST-CUTTING AT WHOSE EXPENSE?MAFISADI OR WANANCHI?HOW SUCH MEASURES MAKE ANY SENSE WHEN OUR SELFISH MPs UNASHAMEDLY PROPOSE TO SKYROCKET THEIR SALARIES FROM THE CURRENT Tshs 7 Million PER MONTH TO Tshs 12 Million ?

22 Mar 2009


As the public electricity power supply utility, Tanesco struggles with bail-out plans in order to avoid major power shedding expected to hit the nation by September this year, fresh details have emerged showing how the cash-strapped company missed a $300million power deal due to greed and battle for the control of big money running into billions of shillings.

According to details from the financier - Barrick Tanzania - the project was suspended early in January this year after Tanesco - Tanzania Electricity Supply Company - failed to adhere to the financing conditions issued in order to ensure that the billions are not swindled by some corrupt top officials within the state-owned company.

Barrick Tanzania had agreed to finance the $300million Mnazi bay power project, which could have produced 300megawatts, and forestalled the looming power crisis.

According to inside information, Barrick Tanzania, being one of the potential clients of the proposed deal, was approached by Tanesco and Artumas through a Power Purchasing Agreement (PPA).

Under this arrangement, Barrick, as a prospective client was to consider the possibility of investing in a generating company, TanGen, and recover its investment through sale of power under the Power Purchase Agreement.

It is through this arrangement that Barrick Tanzania was ready to give the needed billions to finance the stalled project.

Investigations conducted by The Guardian on Sunday have established that earlier, Barrick Tanzania, being alarmed by the financial mismanagement within Tanesco, gave the latter a condition that the two should open a joint venture account in order to manage the Sh390billion($300million).

But for unknown reasons, Tanesco flatly rejected the proposal, insisting that it should be given full mandate to control the $300million.

However, the move was strongly rejected by Barrick which among other things questioned the intention of Tanesco of declining to operate a joint venture account with the financier.

A senior official from Barrick Tanzania who declined to be named citing the sensitivity of the current power debate told The Guardian on Sunday this week: ``I am surprised, they (Tanesco) are crying to buy $50million Dowans plants while they have failed to utilise a $300million deal from us…This is a shame.

``We were surprised to hear that Tanesco management wasn`t ready to agree with a very simple condition they were being given by Barrick…And this led us to think that perhaps there were hidden motives about our money.``

After failure to agree on how to manage the billions which is close to the company`s annual revenue collections, Barrick Tanzania`s management decided to stop financing the project, casting a bleak future on the country`s energy sector.

Surprisingly on February 21, this year, while tabling the financial recovery plan of Tanseco before the parliamentary committee responsible for overseeing all publicly owned corporations, the Company`s Managing Director, Dr. Idris Rashidi, told the committee that he wasn’t aware why Barrick Tanzania pulled out of the project.

``This has come as a surprise to us because we banked our hopes on this project…we were shocked to learn that the financier had pulled out of the
project, `` the MD told the committee, indicating that he wasn’t aware why Barrick had pulled out at the final stages.

But contacted for comment, the Minister for Energy and Minerals, William Ngeleja said: ``I have already started a process to rescue the project…It is true that the negotiations hit a snag recently, but I am working on it.

``I have organised a meeting on March 25 at my office that will involve all concerned parties - Barrick, Tanesco and Artumas - to discuss how to rescue the plan.``

The Minister went on: ``You know that in any deal there`s always disagreement about contentious issues but that can be sorted out…I will ensure that the country gets the 300 megawatts electricity as planned.”

The revelations come after three weeks of a verbal wrangle between prominent leaders, focused on accusations and counter-accusations over an alleged hidden agenda on the proposed 60bn/- Dowans takeover, a situation that has opened the floodgates of mudslinging politics.

The two parliamentary committees - the one led by legislator Kabwe and the other chaired by fellow legislator William Shelukindo - have strongly differed on the Dowans deal, raising a heated debate during the past few weeks.

The company currently purchases about 59 percent of its power from private producers, which according to financial details eats up to 83 percent of the total revenue collected annually.

With dilapidated infrastructure built mainly during the 1970s, the company`s power supply capacity is estimated at 595 megawatts.

This year, the actual demand is 787 megawatts - creating a deficit of 192 megawatts.

According to available details, the company has only 670,000 customers.

Last year, the company planned to increase its customer base by about 100,000, but the target couldn’t be reached due to financial straints.

Still, based on the current economic growth, demand for electricity is estimated to increase by 15 percent annually, while the production capacity continues to dwindle due to various technical and non-technical factors.

Since there are no comprehensive power generating plans in 2010, the power deficit will surge to 300 megawatts, putting the country at risk of facing an even worse phase of power rationing.

Currently, the state-owned company needs about $200m for major repairs on its dilapidated infrastructure, but so far there’s nowhere to get the money from.

Just two years ago, the company borrowed $300m from a consortium of local banks at 10 percent interest per annum, but almost 80 percent of that money was spent on settling outstanding debts.

Currently according to the inside details, Tanesco is on the brink of collapse due to the heavy costs of operations, largely attributed to capacity charges.

In 2004, the company paid 43/- to private power producers for every 100/- it collected in revenue. By 2006, when dubious government deals were made with private companies, that figure had more than doubled, to 104/- for every 100/- collected, according to the parliamentary committee presentation.

In 2007/08, the company spent 83/- for every 100/- it collected to foot the bill of power generated by private producers, but this year, the figures will soar even higher - to 106/- for every 100/- collected, according to the financial recovery plan seen by The Guardian on Sunday.

In other words, 83 percent of the total revenue collected by the state-owned utility company will go to private power producers, leaving the company in dire financial straits.

Over the past two years, the company`s revenue collection has spiked by 122 percent, reaching 437bn/-, a year up from 196bn/- in 2006.

Today, the company`s electricity loss - meaning the amount of energy lost when transmitted from point A to point B - is 24 percent, a staggering amount when compared to countries like South Africa where that loss is below 4.5 percent.


9 Nov 2008


UTATA umegubika mchakato wa zabuni nyeti ya matengenezo ya mfumo wa usalama ndani ya Benki Kuu Tanzania (BoT), ambayo imetolewa kwa Kampuni ya Siemens ya Afrika Kusini.

Kuibuka kwa utata huo kumekuja wakati Gavana wa BoT, Profesa Benno Ndulu akiwa katika mipango ya kuisafisha benki hiyo na tuhuma mbalimbali, ikiwemo ya ufisadi wa fedha za Akaunti ya Madeni ya Nje (EPA).

Nyaraka ambazo gazeti hili inazo, zinaonyesha utata huo umeibuka kutokana na malalamiko kutoka kwa Kampuni ya ESS ya Afrika Kusini, ambayo haijaridhishwa na taratibu za mchakato zilivyofanyika.

Kwa mujibu wa nyaraka hizo, ESS inaonekana kulalamikia hatua ambayo imeita kuwa ni kuwepo mawasiliano kabla, kati ya watendaji wa Siemens na baadhi ya watu ndani ya Bodi ya Zabuni ya BoT.

Mawasiliano hayo yalinaswa katika barua pepe kati ya mwakilishi wa Simens nchini Julai 29,2008, akifahamisha viongozi wake kufanya mawasiliano na mtu mmoja muhimu ndani ya BoT.

Sehemu ya barua hiyo inasomeka, " Nimeweza kuzungumza na mtu mmoja wa kuaminika ndani ya BoT, na amesema zipo zabuni mbili tofauti, ila sisi tutapatiwa moja tu ya utengenezaji mfumo wa usalama."

Barua hiyo, iliandikwa Julai wakati mshindi wa zabuni alipatikana Oktoba 28, ambapo ESS kama mmoja wa washiriki, alifahamishwa.

Utata mwingine katika zabuni hiyo unatokana na kile kinachoelezwa kwamba, Siemens ilishiriki katika uwekaji mfumo huo katika ujenzi wa jengo la ghorofa 18 maarufu kama Twin Towers na lile la Gulioni Zanzibar, ambayo yanachunguzwa.

"Sasa ikitokea ukaguzi wa Twin Towers umeonyesha kulitumika mabilioni bila kuangalia Value for money (thamani ya pesa kwa kitu), itakuaje?" kilihoji chanzo kimoja.

Siemens katika mkataba huo wa miaka miwili iliomba zabuni kwa sh 3.4 bilioni, hata hivyo, makampuni mengine kwa mujibu wa nyaraka za BoT yako juu zaidi.

Hata hivyo, akizungumzia utata huo ofisini kwake jijini Dar es Salaam wiki iliyopita, Gavana Ndulu, alisema hadi sasa ana imani kwamba, mchakato wa zabuni hiyo ulifuata taratibu husika.

Kwa mujibu wa Profesa Ndulu iwapo atabaini kuna tatizo lolote ikiwemo ukiukwaji wa mkataba huo hatasita kuisitisha.

Profesa Ndulu alisema dai la kwamba Siemens ilijenga Twin Towers ni kweli, lakini akabainisha kuwa hata kampuni nyingine ambayo ni pamoja na ESS na Group 5, pia zilishiriki katika ujenzi huo na pia ziliomba zabuni hiyo.

Profesa Ndulu alisema kabla ya kushirikisha kampuni hizo tatu ambazo zote zilishiriki katika uwekaji wa mfumo wa usalama kwa ngazi tofauti, ilibidi bodi itafute mwongozo kutoka Mamlaka ya Zabuni (PPRA), ambayo ilithibitisha hakuna tatizo.

Mwananchi Jumapili ilifanikiwa kuona nakala ya baraka za PPRA kwa BoT, ikieleza kuwa hakuna matatizo kwa makampuni hayo kushiriki ili mradi vigezo vizingatiwe.

"Najibu moja baada ya jingine, unanijua sifichi kitu na sipendi kupindisha mambo, kuhusu Siemens kushiriki katika Twin Towers, ni kweli, lakini hata ESS na Group 5 walishiriki kwa ngazi tofauti, Group 5 ndiyo wanaojenga jengo hilo, lakini pia wameshiriki," alisema Profesa Ndulu na kuongeza;

"Kama ni kigezo hicho, tusingeruhusu hata ESS na Group 5, kampuni hizi mbili na Siemens zote zimeshiriki katika Twin Towers, ndiyo maana kabla ya zabuni tukaenda PPRA kupata ufafanuzi, wakaruhusu," alisema.

Akifafanua kuwepo mawasiliano kati ya watu ndani ya bodi na Siemens, alisema hadi sasa hajaona tatizo kwani ni kweli zabuni zilikuwa mbili, lakini BoT ikaamua yenyewe kuchukua kazi moja ya kushughulikia uendeshaji wa mambo mbalimbali na kuacha hilo la ukaratabati mfumo wa usalama.

"Ni kweli, zabuni zilikuwa mbili, tulipoona wenyewe tunayo idara ya kuangalia mambo mbalimbali ikiwemo usafi na ununuzi wa vifaa, tukaamua tuipunguzie gharama kwa benki kwa kuipa zabuni kampuni moja, lakini pia si kwamba tunamwachia peke yake, wapo vijana wetu mahiri wanashirikiana nao," alifafanua.

Profesa Ndulu alisema hajaona tatizo katika hatua hiyo kwani zabuni ilitangazwa Juni na mawasiliano yamefanyika Julai, huo ni utaratibu wa kawaida kwa sababu kuna vitu ambavyo kampuni zote zinapaswa kuelezwa baada ya zabuni kufunguliwa.

"Sasa kusema kwamba zabuni ambayo itatolewa kwa ajili ya kugombaniwa ni ya usalama si uendeshaji, si tatizo ndicho tulichoeleza kwa kampuni zote," alifafanua.

Profesa Ndulu alisema ingawa haingii wala kuruhusiwa kuingilia mambo ya zabuni, lakini amekuwa akiuliza na kupatiwa taarifa za mara kwa mara kwa lengo la kuangalia utaratibu wa kutekelezwa kwa kuzingatia taratibu za kisheria.

"Mimi sitaki watu wapindishe mambo hata kidogo, nitasimamia sheria na kanuni, ndiyo maana huwa wakati mwingine nataka ufafanuzi wa mambo mbalimbali," alisisitiza Gavana Ndulu.

BoT katika kipindi cha kuanzia mwaka 2000 imekuwa na matatizo mbalimbali, ambayo hata hivyo, chini ya uongozi wa Profesa Ndulu amekuwa akijaribu kuisafisha na tuhuma hizo.

Baadhi ya mambo aliyoahidi kuyashughulikia ni kuchunguza mchakato wa ujenzi wa majengo pacha ya benki hiyo jijini Dar es Salaam na lililoko Zanzibar, kupitia ajira za watumishi wa BoT ambaye ametekeleza kwa kiasi kikubwa.

CHANZO: Mwananchi

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