Ethics tribunal questions Chenge over escrow cash

The Bariadi West outgoing MP on a CCM ticket, Mr Andrew Chenge 

In Summary

Mr Chenge, a former AG, was among those named to have received a share from the escrow monies

By Bernard Lugongo The Citizen Reporter

Dar es Salaam. The Bariadi West outgoing MP on a CCM ticket, Mr Andrew Chenge, was yesterday quizzed over conflict of interest in his role of serving as a consultant for VIP Engineering and Marketing Limited after he served in the government as the Attorney General (AG).

Mr Chenge, a former AG, was among those named to have received a share from the escrow monies whereby he pocketed of Sh1.6 billion last year from James Rugemalira of VIP Engineering and Marketing Limited.

Lawyers of the Ethics Secretariat said Mr Chenge used information he obtained from the government for his previous capacity to support the VIP Engineering and Marketing Limited, a minority shareholder of Independent Power Tanzania Ltd (IPTL), which entered into power agreement with the government.

Mr Chenge insisted that the money was payment for the consultancy he provided to the VIP Engineering and Marketing Limited since 2006 after he retired from the position of AG.

But, a lawyer with the Ethics Secretariat, Ms Gertrude Cyriacus, said a contract that Mr Chenge entered into with the company to provide consultancy has a section that directs a consultant to convince the government on the importance of supporting the VIP Engineering and Marketing Limited.

“Regarding this section of the contract, don’t you see there is a conflict of interest considering your previous position in the government?” Ms Cyriacus said.

Mr Chenge replied that he did not see any conflict of interest between the public interests and the private company’s interests since he was protecting the interest of the VIP Engineering Company against Mechmar, which is majority shareholder of the IPTL.

It was the IPTL that entered into the contract with the government in 1995 to produce electricity and sell it to Tanzania Electric Supply Company (Tanesco).

In 2002, IPTL started implementing the contract, but later on the deal landed into commercial dispute between Tanesco and IPTL over power charges.