Scandal: Pay up or pay the price, says minister

Finance deputy minister Mwigulu Nchemba 

By Katare Mbashiru,The Citizen Reporter

In Summary

• In their call for accountability, the majority of Tanzanians appeared convinced that crime was committed and asked the government to implement the recommendations of the PAC.
• Professor Muhongo’s defence that the escrow funds did not belong to government drew quick condemnations on Thursday.

Dodoma. Legislators wound up a heated debate on the Tegeta escrow account scam yesterday, with Deputy Finance Minister Mwigulu Nchemba directing the taxman to collect all money due from those linked with the scandal through Mkombozi and Stanbic banks.

According to Mr Nchemba, his ministry launched action against officials who were implicated in the Controller and Auditor-General’s report immediately after the Parliamentary Public Accounts Committee (PAC) tabled its report in Parliament. The ministry established that Sh29.96 billion that was supposed to be paid as Value Added Tax was not released, and Mr Nchemba pledged that all the money would be paid as required by the law. As of yesterday, Sh4 billion had been paid.

“Our VAT should be paid and I am directing the TRA commissioner to ensure that it is paid,” he added. “We can’t leave this money with a tycoon when our poor women are selling vegetables out there to make ends meet.” The Finance deputy minister has reportedly directed the TRA commissioner general to sack one of his officials said to have stolen money by manipulating figures. “There is a person who, instead of writing $6 million and $20 million, wrote Sh6 million and Sh20 million instead,” he confided. “I have repeatedly said here that when you suspend such officials, you just give them leave and ample time to spend the money without any disturbance--and it is high time we fired them.”

Mr Nchemba gave no names but went on to say that the money that was misappropriated would have bought medicine for various public hospitals and provided loans for students in higher learning institutions who are struggling to fund their education. Politicians, public servants, judges and clerics are among those mentioned in the PAC report in connection with receiving bribes and Mr Nchemba directed TRA to ensure that they pay income tax before the month ends.

The chief executive officers at Stanbic and Mkombozi banks were required to provide statements on how the transactions were made before the end of business yesterday, he said amid rounds of applause in the House.

Debating the escrow account saga in Parliament, Mr  Mohamed  Habib Mnyaa applauded Mr Nchemba--who is also the CCM deputy secretary-general--and advised CCM MPs who have been protecting those implicated in the report to follow the footsteps of the deputy Fnance minister.