Tanzania:Mlimani City contract controversy deepens

By KATARE MBASHIRU

CONTROVERSY continues to shroud the Mlimani City saga as it emerged that Mlimani Holdings Limited (MHL) signed two different contracts with the University of Dar es Salaam (UDSM) and the Tanzania Investment Centre (TIC), stipulating different provisions.

The contract the investor signed with UDSM wants MHL to put up a three-star hotel, while that of TIC demands them to construct a four-star hotel. The tussle, however, is expected to spill into the august House, next week, as a big cloud hangs over the issue, although the investor maintains that there is no cause for alarm as negotiations between MHL and UDSM are continuing.
Yesterday, the Parliamentary Committee for Public Accounts Chairperson, Naghenjwa Kaboyoka, told the ‘Sunday News’ that her committee decided to hand over the matter to the Speaker of the National Assembly, Mr Job Ndugai, especially on the controversial contract. “We are still in limbo over that contract and my committee has decided to forward the matter to the speaker of the national assembly for debate and decision making,’’ she said over the phone.
What remains a mystery and confused the parliamentarians when they visited Mlimani area a few days ago, is the fact that MHL signed two different contracts with TIC and UDSM. The contract between UDSM and MHL wants the investor to put up a three-star hotel and a botanical garden, while that of TIC and the investor pushes for a four-star hotel.
Contacted yesterday, TIC Executive Director Godfrey Mwambe told the ‘Sunday News’ that he could not comment on the matter as he was boarding a plane and directed that the Public Relations Officer (PRO) responds to the ongoing tussle. The PRO, Ms Pendo Gondwe, said she was not in a position to respond over the matter and directed that the ‘Sunday News’ seeks clarification tomorrow during official working hours.
MHL is partly owned by the Botswana-based Turnstar Holdings. In 2004, the university signed a lease agreement and performance contract with the investor and so did TIC. However, the UDSM contract has so far been subjected to scrutiny over some gaps established by audit reports which are believedto benefit the investor more, leaving the university with a small share. In executing the contract, MHL has so far constructed a world class destination comprising of a retail shopping mall, an International Conference Centre and six commercial office blocks.
In an interview with the Business Weekly and Review newspaper of Botswana, the MHL Managing Director, Gulaam Adoola, said his company had so far paid 7 million US Dollars, as ground rent for the use of the UDSM land. He added that there were approximately 1,850 Tanzanian citizens employed directly and indirectly at Mlimani City by various tenants therein.
“The revenue authorities collect significant amounts of revenues from entities at Mlimani City in terms of VAT, Corporate and Personal employment taxes and from activities conducted within the complex,’’ he maintained.
A fortnight ago, UDSM management admitted before the Parliamentary Public Accounts Committee (PPAC) that the contract needs to be reviewed, insisting that it was benefiting the investor than the owner of the land. The UDSM management said it was pushing for the amendment of the contract.
The Parliamentary Public Accounts Committee (PPAC) said it would summ