Key players in PAC’s list of shame

Dar es Salaam. The Public Accounts Committee (PAC) yesterday authenticated roles played by a number of people and institutions to facilitate the siphoning of about Sh306 billion from the Tegeta escrow account at the BoT, established in 2006 following a dispute between Tanesco and IPTL.

In a report tabled by PAC chairman Zitto Kabwe (Kigoma North – Chadema) and his deputy, Mr Deo Filikunjombe (Rudewa – CCM), the committee proposed that stern legal and disciplinary measured be taken against such people and institutions.

ATTORNEY GENERAL

Among those implicated by the PAC is Attorney General, Judge Frederick Werema, who has been found to have given the government bad advice, which led to the withdrawal of the money and subject Tanesco and the government into huge losses.

According to PAC, Judge Werema failed to dully discharge his responsibilities of conducting due diligence on Pan African Power Solutions (PAP), which presented forged documents claiming it has purchased seven shared of Machmar of Malaysia, a co-owner of IPTL with VIP Engineering of Tanzania.

While his office was supposed to make sure that the company (PAP) had indeed bought the shares in accordance with the laws, the AG office failed to do that and went on to advise the ministry of Energy and Minerals, as well as Bank of Tanzania, to release the escrow money to PAP.

MINISTER OF ENERGY

The committee also found the minister for Energy and Minerals, Prof Sospeter Muhongo, culpable of, among other things, lying to the Parliament and the nation that the money deposited by Tanesco into the escrow account, was not public funds.

The committee also noted that if it were not for Prof Muhongo’s failure to verify certain issues, his ministry would have prevented PAP from assessing the escrow cash.

The committee also established that it was the minister, a reputable geologist, who facilitated, in his office, meeting between PAP and VIP Engineering, during which the later agreed to sell its three shares to PAP.

TANESCO BOARD

The committee also implicated the Tanesco Board of Directors, noting that at one point, it disregarded advice from the Tanesco management and permitted the money from the escrow account at BoT to be released to the PAP.

Among other things, the committee noted that despite sending a Tanesco legal counsel to Malaysia to check on the IPTL sale, the Board didn’t wait for his report and instead conducted marathon meetings in which it backtracked in its earlier position of refusing to withdraw the escrow money to PAP.

HARBINDER SINGH SETHI

Basing on the findings by the Controller and Auditor General (CAG) as well as testimony by the Prevention and Combating of Corruption Bureau (PCCB), the committee asked the government to immediately arrest and charge the PAP owner, Mr Harbinder Singh Sethi for a series of crimes including economic sabotage, money laundering and theft of public money.

The committee noted that Mr Sethi stole public money from the escrow account as well as evading taxes after presenting forged documents purporting to show that his company has bought the 70 per cent stake in the IPTL.

PERMANENT SECRETARY

Among public officials found wanting by the committee is the permanent secretary in the ministry of Energy and Minerals, Mr Ekliachim Maswi. The committee noted that as principal ministry executive, Mr Maswi misled a number of institutions and individuals into believing that Tanesco and the government was not entitled to the escrow money.

The committee said it was Mr Maswi who entered into an agreement to withdraw the escrow money without satisfying himself what were the requirements of the judgment given by the international court which determined on the same.

VIP ENGINEERING

Another company connected to the deal is VIP Engineering, which used to own 30 per cent of IPTL.

The committee noted that the owner of the company, Mr James Rugemalira, made dubious payments to individuals, including politicians, public officials and religious leaders, after he received $75 million from PAP being payment for his IPT shares.