Mr. Samuel SittaDar es Salaam. The minister for East Africa Cooperation, Mr Samuel Sitta has advised the government not to pay Dowans Holdings SA and Dowans Tanzania Limited a sum of Sh106 billion for breach of contract.
The International Chamber of Commercial (ICC) has recently ordered Tanzania Electricity Supply Company to pay the money to the two claimants for breach of power contract that the two companies inherited from controversial Richmond Development Company of US.
The two claimants had gone to ICC after Tanesco moved to High Court to restrain the power producers from disposing its turbines. Dowans wanted to sale the turbine after the government terminates power production and purchase agreements between Tanesco and the firm on grounds of underperformance.
But Mr Sitta told this paper by telephone yesterday that paying the money would amount to economic sabotage. Mr Sitta was the Speaker of National Assembly when the deal to revoke the power production contract was revoked by the house after being tabled by the minister for Energy and Minerals, Mr William Ngeleja.
Mr Sitta suspected that the ICC ruling to be a part of clandestine mission by a group of people to amass money ready for 2015 General Election.
Tanesco annulled the contract in 2008, one year before its mutual end, on grounds that the contract was sealed against the Public Procurement Act. Tanesco has said it would comment on the issue after the ICC ruling has been registered by the High Court.
The Attorney general office has already summoned documents regarding the case and is evaluating them before issuing its comments and directives on what should be done.
But Sitta said the ruling should be scrutinised thoroughly. “There is every indication that there is a group of people who are bent to sabotage the country economy. There is no substantive reason for the government to pay Dowans all that money, it is not fair,” he said without naming those whom he is suspecting to be behind the ruling.
He added: “It is the same gang which has no mercy to Tanzanians... and if we allow it to grow, Tanzanians should expect more problems.”
"They have been making Tanzanians look fools who cannot think. Because they have a grip on important issues, they think that they will continue to dedicate things in the country... I don’t know what they are after what,” he noted.
Mr Sitta insisted that Tanesco should not be blamed for the ICC ruling as it was the work of the same gang which want to fleece the country of its meagre resources.
“I will effectively participate to ensure that national interests are safeguarded against interests of individuals... I will make sure that the gang does not get a chance to loot,” he vowed.
He said the ruling should not be viewed as a failure by Tanesco or its sole burden but people should go deep and look at what has lead to the ruling to be given at this time.
He said some of people who have been accused of grand corruption have been hesitant to file their cases locally because they know that their secrets would be revealed.
After the contract was annulled in 2008, last year Dowans announced its intension to sale the generators but it failed to do so after Tanesco had gone to the court to seek injunction.
The former Tanesco boss, Dr idirs Rashid, indicated willingness of Tanesco purchase the gas powered turbines but the power utility firn rescinded the idea following opublic backlash.
But the decision by ICC means that Dowans could now sale its turbines including 120Mw 50HZ Thermal Power Plant, General Electric 4x20Mw Dual Fuel and 1x40Mw natural gas plant.
Dowans inherited the Richmond Development Company’s controversial Sh152 million-a-day emergence power supply contract, which was also the cause of resignation of three ministers including a Prime Minister in February 2008.
The plans to sale the turbines was a source of heated public debate last year with some people proposing that the government could nationalise the plants after the company failed to honour the agreement.
In a statement yesterday, Dowans said it is pleased with the award by ICC and expressed that its conflict with Tanesco has come to an end.
“Dowans is pleased with the award given by ICC and we would like to state that our conflict with Tanesco has come to an end,” reads part of the two paragraph notice.
However, it could not be established immediately if Dowans would now be able to dispose its plans as the High Court case was still pending.
By: Citizen Reporter
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