Three MPs resign over escrow billions bounty

Dar es Salaam. Three parliamentary committee chairpersons have resigned over the Sh306 billion Tegeta escrow account scandal. Those who handed in their letters to the Office of the Speaker are Bariadi West MP Andrew Chenge, Sengerema MP William Ngeleja and Lupa MP Victor Mwambalaswa.

Mr Chenge and Mr Ngeleja—both from CCM—chaired Parliament’s Budget Committee and Legal Affairs and Governance Committee respectively and Mr Mwambalaswa chaired the Energy and Minerals Committee. The trio received about Sh1.7 billion in total, out of which Mr Chenge alone got  a whopping Sh1.6 billion from Mr James Rugemalira, who was a shareholder in Independent Power Tanzania Limited (IPTL).

Speaker Anne Makinda confirmed their resignation yesterday. Her office is awaiting the names of new leaders elected by the committee. Ms Makinda, who was speaking on the sidelines of the handing over of office equipment worth $100,000 to Parliament by Chinese Ambassador Lu Youqing, said her office endorsed the resignation of the three officials as per the resolutions passed by the august House in November.

The PAC had recommended that Mr Chenge, Mr Ngeleja and Mr Mwambalaswa--who was also a member of the Tanesco board—be relieved of their parliamentary duties.

The committee said Mr Chenge received Sh1.6 billion Mr Rugemalira, the managing director of VIP Engineering and Marketing Ltd. The firm pocketed $75 million (over Sh100 billion) from the escrow account after selling its 30 per cent share in IPTL. Mr Ngeleja and Mr Mwambalaswa received Sh40.4 million each.

Parliament called for action against people in the executive, judiciary and legislature who were controversially paid by those who benefited from the escrow billions. 

It also asked President Kikwete to dissolve the board of directors of the Tanzania Electric Supply Company (Tanesco) as it failed to advise the government on the matter, subjecting the country to a huge loss. But that resolution was term-barred because the tenure of Tanesco’s Board of Directors had already expired when it was issued.

Parliament wants President Kikwete 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 Mr Rugemalira, the owner of VIP Engineering.

Mr Rugemalira is said to have dished out money generously after receiving $75 million from Pan African Power Solution (PAP), which claimed it bought 70 per cent of IPTL from the Malaysian firm in 2010 before it eventually acquired the remaining 30 per cent from VIP Engineering and Marketing in September 2013.

PAP--through its executive chairman, Mr Harbinder Singh Sethi--then convinced the government to transfer to it all the money held in the Tegeta escrow account.

Investigations conducted by the Prevention and Combatting of Corruption Bureau and a special audit by the Controller and Auditor General found that PAP did not legally acquire 70 per cent from the Malaysian company, Mechmar, and that the transaction was marred by fraud.

Yesterday, Ms Makinda said there was no way to spare the chairpersons of the three House Committees and, besides, her office respected the resolutions endorsed by the legislature she leads. “They have already resigned and we expect to have new leaders in those committees,” she added.