No 'guilty' pleas in IPTL escrow account saga

By The guardian reporter

Energy and Minerals minister Prof Sospeter Muhongo

There was heated debate in the National Assembly here yesterday on the Bank of Tanzania’s Tegeta escrow account scandal reports, with those implicated including Prime Minister Mizengo Pinda, Attorney General Frederick Werema, government ministers and other high-ranking officials denying any wrongdoing.Some of those who contributed to the debate, notably Energy and Minerals minister Prof Sospeter Muhongo and a few legislators, repeatedly declared in the House that the tens billions of shillings at the centre of the controversy was Independent Power Tanzania Limited (IPTL) money and not public funds.
Muhongo’s remarks were intermittently greeted with boos from a section of legislators, some repeatedly demanding that the presiding House chairman order the minister to cut short his contribution or be forced to do so.

Singida East legislator Tundu Lissu (Chadema) led the counter-arguments by suggesting that Prosper Mbena, then Chief Secretary, was directed by President Jakaya Kikwete to facilitate the release of money from the escrow account.

''If the money is not public property, the President would not have given the instructions… The reports by the Parliamentary Public Accounts Committee (PAC), Controller and Auditor General (CAG) and Prevention and Combating of Corruption Bureau all confirm that this is taxpayers’ money,'' he said.

Igalula MP Athuman Mfutakamba (CCM) said the 30bn/- that ought to be paid to Tanzania Revenue Authority (TRA) by Pan African Power Solutions (PAP) must be paid immediately.

He added that all those who received money from James Rugemarila, a former shareholder in IPTL, must be made to pay tax on the amounts they were paid.

Some MPs were however of the opinion that PM Pinda was not directly involved in the saga and should not resign, with CCM’s Richard Ndassa (Sumve (CCM) asking rhetorically: “There is nowhere in the report where the PM is mentioned as involved… so, why should he resign?”

“But, I have to make it clear that confiscating the IPTL power plant as recommended by the Parliament Public Account Committee would earn our country serious trouble,” he said, noting that this was because there was an outstanding US$130million claimed by Standard Chartered of Hong Kong.

Debate on the IPTL escrow account saga is expected to continue in the National Assembly this morning, perhaps the last day of the current meeting of the House.