Calls for audit of $6m missing gas cash

Tanzania recently discovered 4.8 trillion cubic feet of gas in the deep sea. Photo/FILE 

By EMMANUEL MUGA Special Correspondent

In Summary

• Tsh11 billion ($6.6 million) could not be traced in government accounts, although the amount is shown to have been paid to the government by investors.
• Energy and Minerals Minister Sospeter Mhongo said that he would not respond to the opposition’s arguments.
• Mr Mhongo said Tanzania was on course to becoming a middle income economy by 2025, citing the recent massive discovery of gas in the deep sea of 4.8 trillion cubic feet; the total amount of gas discovered so far is 46.5 trillion cubic feet.

Tanzania’s opposition leaders have alleged that some proceeds from the oil and gas sector are not accounted for.

Quoting the 2013 report published by the Tanzania Extractive Industries Transparency Initiative, shadow minister of energy and minerals John Mnyika said there are discrepancies between the money paid by investors to the government and the actual amounts recorded in the government’s books.

According to the report, Tsh11 billion ($6.6 million) could not be traced in government accounts, although the amount is shown to have been paid to the government by investors.

Mr Mnyika asked parliament to pass a resolution directing the Controller and Auditor-General to conduct a forensic audit and expose the culprits.

But the CCM-dominated House ignored Mr Mnyika, prompting MPs from the opposition to walk out.

Energy and Minerals Minister Sospeter Mhongo later said that he would not respond to the opposition’s arguments.

“We have been given a clean bill of health by the auditors,” he said.

Mr Mhongo said Tanzania was on course to becoming a middle income economy by 2025, citing the recent massive discovery of gas in the deep sea of 4.8 trillion cubic feet; the total amount of gas discovered so far is 46.5 trillion cubic feet.

Mr Mhongo said the 500km gas pipeline from Mtwara to Dar es Salaam is 78 per cent complete.

The pipeline, which was commissioned in 2012, is being constructed by Chinese contractors at a cost of $1.2 billion. The money is a loan from Exim Bank, and was given a 33 year maturity at a 2 per cent interest rate.

Once completed, the gas piped to Dar es Salaam will generate 3,900MW of electricity.

READ: Tanzania to use gas to double its power by 2016

Tanzania has a total installed capacity of 1583MW of electricity, but there are numerous gas, coal and hydro projects in the pipeline, expected to double energy production in the next three years.

Mr Mhongo said natural gas projects in Mtwara, Dar es Salaam and Lindi as well as the hydropower project shared by Rwanda and Burundi at Rusumo are ongoing.  

READ: Lindi chosen to host first gas project