Bunge team to summon minister, AG over Uda

Dodoma. Top officials of the Dar es Salaam City Council yesterday failed to clearly answer critical questions raised by the Parliamentary Local Accounts Audit Committee (LAAC) on the controversial sale and ownership of the city’s public transport company (Uda) to Simon Group (SG).

The City Council was for the second day appearing before the committee to clarify a number of audit queries raised by the Controller and Auditor General’s (CAG) office.

The first question was from the committee deputy chairperson and Nanyamba MP (CCM), Mr Abdallah Chikota, who wanted to know how SG made its way in and owned Uda.

The city director, Ms Sipora Liana, who has served in the office for three months now, told the committee that she was unaware of it.

The question was then turned to the City Council lawyer, Mr Jumanne Mtinnge, who said there were no official documents showing how SG got into the picture and bought Uda shares.

“As far as I’m concerned, we only have a contract, but I have never come across the documents showing how SG was invited,” he said.

The council’s economist, Ms Sara Yohana, tried to shade light on the matter, stating that the records they have indicate that SG got into the picture after acquiring Uda’s un-allotted shares.

“The shares were sold by Uda’s board of directors without any competition, even the CAG raised his concern on the sale for it was supposed be supervised by the Consolidated Holding Corporation (CHC),” Ms Yohana said

The answers couldn’t clinch the MPs’ thirst. Special Seats MP (CCM) Azza Hilal said: “It looks like the council leadership, especially the economist and internal auditor, have the right information but are reluctant to share them.”

Her sentiments were echoed by her colleague Leah Komanya (Special Seats-CCM), who asked them if they didn’t have the right information then who should be summoned to give the answers.

Before they responded, Rombo MP (Chadema) Joseph Selasini reminded them that it was unlawful to lie before the Parliamentary committee for it is an integral part of the National Assembly.

Ms Yohana (the economist) then told the committee that the un-allotted shares were sold in 2011, while she took over the office in 2013 from her late predecessor one Mr Semkinga.

She, however, said people who can attest as to how SG was invited were the leaders of Uda board, which was then under chairman Iddi Simba, board secretary Mwakagenda Salum and the then City Council director, Mr Bakari Kingobi, who has since passed away.

“What I can accurately talk about here is the sale of 51 per cent of Uda shares belonging to the City Council, which was appropriately executed,” she said.

Telling his side of the story, the council’s Internal Auditor, Mr Eusebi Marenge, told the committee that Uda was an independent entity run by its board of directors.

He said what his office was doing was to probe why they were not paying the city council its due dividend.

“We had no access on operation matters of the company and thus I don’t know how the board welcomed the SG,” he said

According to the CAG’s 2014/15 report, the sale of Uda’s unspecified shares to SG was done without government approval for Sh1.1 billion, but the company only paid Sh285 million or 24 per cent of the agreed sale price.

The report says there is no evidence for payment of the remaining 75.1 per cent or Sh858 million.

The second critical question, which also didn’t get a clear answer from the council leadership, was from Ulyankulu MP (CCM) John Kadutu, who wanted to know who were the shareholders of Simon Group.

Responding, the council lawyer said they did not bring along the ownership documents of SG.

“How dare you come here without that document while you knew this question would popup,” asked Mr Chikota.

“Tell us SG is owned by how many shareholders,” he added.

The lawyer said he was not sure of the number. “They are two or three,” said Mr Mtinange.

This prompted Mr Kadutu to ask the lawyer if he was aware of any connection between former Kaliua MP and cabinet minister Juma Kapuya on SG ownership, of which the lawyer said, “No, I know nothing about it.” Special Seats MP (CUF) Mgeni Kadika wanted to know why Iddi Simba was paid on his personal account Sh320 million by SG.