Tanesco takes govt to task over 125bn/- bill

KATARE MBASHIRU in Dodoma

THE government owes the state owned power utility firm Tanzania Electric Supply Company (TANESCO) over 125bn/- in arrears in unclear circumstances.

Making the revelation, the firm’s Director General, Engineer Felchesmi Mramba said on Wednesday evening before a Parliamentary Public Accounts Committee (PAC) that the money has not been paid.

Following the revelation, PAC chairperson who doubles as Same East Legislator, Naghenjwa Kaboyoka issued a six-month ultimatum to the government to make sure that it clears all the bills. “The committee hereby directs the government to make sure that all the debts are cleared within six months,’’ said Ms Kaboyoka immediately after her committee grilled TANESCO top officials.

According to Eng Mramba, in Zanzibar in particular, through Zanzibar Electricity Corporation (ZECO), the government has an outstanding bill of over 85bn/- while in its other institutions in the union, the debt stands at a whopping 40bn/-.

That was learnt when Eng Mramba, and TANESCO Chairman of Board of Directors Engineer Alexander Kyaruzi appeared before PAC to respond to queries from Members of Parliament (MPs) on the findings of the CAG report for the year ending June 30, 2015.

“It is high time the government leaves TANESCO to operate as a business firm, for it does not make sense to regulate electricity bills to normal persons while the same government institutions are accumulating huge debts,’’ said the PAC chairperson.

According to the TANESCO DG, his company had already made a series of meetings with authorities in Zanzibar in a bid to ensure the debts are cleared, adding that the firm’s outstanding bill started accumulating in 2013.

“ZECO is charging lower capacity rate, therefore, it becomes difficult to clear its outstanding debt,” clarified Mr Mramba. He, however, said that the latest information from his office had it that a request had been submitted to the Zanzibar government to clear the Isles debt.

“It is still unclear as to when will the government will pay TANESCO the staggering more than 125b/- in arrears. The PAC chairperson asked the Treasury Registrar, Lawrence Mafuru to issue a statement on what the government was doing to help the cash strapped public power utility firm.

“I have already submitted the debt report to the highest level of decision making organ and I have clearly stated that the highest debt is from Zanzibar,’’ he said adding that his office was waiting for any directive from the highest office in the country.

Meanwhile, Morogoro South East MP, Omary Mgumba (CCM) asked TANESCO to outline the strategies it had put in place to make sure that it does not fall into the same trap of debts again. According to Eng Mramba, currently, the power utility firm had installed LUKU meters to about 96 percent of normal customers, adding that the company was accomplishing the remaining 4 percent. “We want to do away with prepaid services so that all electricity subscribers use LUKU meters,’’ he said.

In Zanzibar, the TANESCO DG said the electricity tariffs would now be set by the regulator, Zanzibar Utilities Regulatory Authority (ZURA) that usually conducts a study on the cost of services before setting tariffs.

In another development Sikonge MP Joseph Kakunda pointed out some irregularities in the procurement process that prompted the loophole, as it was revealed in the CAG report for the Financial Year 2014/2015, saying TANESCO officials should state what measures they have in place to ensure that they do not resurface in the next fiscal year.

According to Eng Mramba, TANESCO made a reshuffle in the Procurement Department where more than 50 percent of its staff in various departments are now new employees. He added that the department was restructured to establish four new sub-sections.

He mentioned them as Major Projects and Consultancy, Equipment distribution, Generation and Transmission and General Procurement subsections. “After these new changes we have also recorded a number of improvements and now prepared a manual that gives guidance in each department,’’ he said.

In its directives, PAC asked TANESCO to make sure that the procurement anomalies that occurred in the 2014/2015 CAG report are not resurfacing in the next Financial Year because CAG expects to table its annual audit report before the next parliamentary budget session next year.