Prof Anna Tibaijuka. PHOTO | FILE
By Frank Kimboy,The Citizen Reporter
In Summary
WHAT KIKWETE DECIDED
2. The move could have a negative impact on investment
3. Govt and Parliament to consult so as not to breach contracts
4. Welcomes idea and says state ready to enhance PCCB reforms
5. Left decision forJudicial Commission of Inquiry on the Chief Justice
6 Matter being investigated by the Financial Intelligence Unit
7. Dropped Prof Tibaujuka, put Prof Muhongo, PS Maswi on investigation wait list. Tanesco Board has expired and new chair named.
8. Parliament will make own decision on Chenge, Ngeleja and Mwambalaswa
Dar es Salaam. President Jakaya
Kikwete yesterday sacked Minister for Land, Housing and Human
Settlement Development Prof Anna Tibaijuka over the Tegeta escrow
account scandal cash.
The President announced the decision when
delivering his verdict on the scandal in a televised address to the
nation via a gathering attended by Dar es Salaam elders.
Prof Tibaijuka’s sacking comes only a day after
she publicly rejected widespread calls to resign on her own volition
over ethical issues surrounding the manner in which she received a
whopping Sh1.6 billion, part of the escrow monies.
Her sacking was clearly the only exciting
component of President Kikwete’s two- hour address during which he gave a
long background of the IPTL saga that has blotted his administration.
The Head of State’s take on the scandal largely
left many questions unanswered in relation to the parliamentary
recommendations that suggested stern steps against those it viewed as
culpable. Many of the recommendations were left hanging.
President Kikwete also said he has formed a
special team to probe Minister for Energy and Minerals over his role in
the controversial withdraw of billions from the Tegeta escrow account at
BoT.
The Parliament had recommended that two ministers,
energy and minerals permanent secretary Mr Eliakim Maswi, Attorney
General Judge Francis Werema should be sacked while the Tanesco board of
directors should be dissolved over the IPTL scandal. Mr Werema has
since resigned as AG.
Prof Tibaijuka received the Sh1.6 billion from VIP Engineering and Marketing owner James Rugemalira. Said the President:
“We have spoken to Prof Tibaijuka and she told us
she received the money as a donation for her school; but we asked
ourselves: if the money was for the school, why was it transferred to
her personal account?”
He added: “No matter what the reason was, it went
against public leadership ethics; so we asked her to step aside so we
can appoint someone else to take her position,” added the President to a
big cheer crowd.
Last week Prof Tibaijuka vowed she would not quit
over the escrow scandal. She proclaimed her innocence, claiming that
even the President would be disappointed if she resigned.
Speaking about Prof Muhongo, the President said he
would make his decision after receiving a report from a team which he
formed to investigate him
He further said he has instructed the relevant organs to investigate Energy and Minerals PS Maswi.
“As for the recommendation to dissolve Tanesco
Board of Directors there is no need since its term has already expired;
but since Mr Maswi is a public servant, there are procedures which have
to be followed so I have directed the relevant organs to act,” said
President Kikwete.
The Parliament had also asked the President to
form an inquiry team to investigate Judges Aloycius Mujulizi and John
Ruhangisa whose names appeared on the list of people who received money
from James Rugemalira, the owner of VIP Engineering. VIP sold its 30 per
cent shares in IPTL to PAP for $75 million.
However, President Kikwete said due to the judicial procedures, the matter has been left in Chief Justice’s hands.
Regarding the controversy surrounding the owner of
the money in Tegeta Escrow account, the President conceded that the
money belonged to Pan Africa Power (PAP) solution who acquired IPTL
shares.
However, he noted, the government was supposed to
collect Sh21.7 billion as capital gain tax from IPTL as it sold its
shares. According to him, the Tanzania Revenues Authority (TRA) has
already contacted IPTL and the firm has agreed to pay the tax.
Responding to other recommendations made by the
Parliament the President said it would be very dangerous for the
government to nationalise IPTL plants especially at the time when the
country was encouraging the private sector to invest.
The President also said the Financial Intelligence
Unit (FIU) has been directed to investigate Stanbic Bank and other
financial institutions from which the money from Tegeta escrow account
was transferred. The Parliament proposed that Stanbic Bank and other
financial institutions involved to be declared institute of money
laundering concerns.
The President further said the government would also investigate the controversy surrounding PAP acquisition of IPTL shares
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