By Mlagiri Kopoka, The Political Platform Correspondent
Mwanza. Unresolved massive corruption cases and the global economic meltdown will likely aggravate hardships among Tanzanians in 2012, as escalating strikes usher in the New Year.  The recent interns’ strike at Muhumbili National Hospital raises a question on the government’s ability to meet its wage bill.

The Sh176 million in allowance arrears the greenhorn medical personnel were demanding during the strike is just a tip of the iceberg, as several labour disputes will likely be on the employer’s neck this year.

The year begins with the government facing increasing financial difficulties with inflation registering double digits.Financial and Economic Affairs shadow minister Zitto Kabwe predicts inflation to hit a record high of 30 per cent in few months to come.

The value of the shilling sas lost over 20 per cent to the greenbuck late last year when Tanzania’s public debt soared by 40 fold from $ 1.83 billion to $ 2.3 billion. And the central bank fails to raise sufficient money from financial markets to rescue the situation due to lack of confidence among investors in the government securities.

Corruption undermines the economy by generating considerable distortions and inefficiency in what modern economist term as ‘the Greek tragedy’. The vice, according to anticorruption experts, diverts public investment into capital projects, which embrace bribes and kickbacks.

Finance and Economic Affairs minister Mustafa Mkulo though has assured Tanzanians that the government would implement its budget as planed, preventing inflation from frustrating the national financial plans is a tall order.
The fragile economic situation can partly be attributed to the government’s failure to resolve longstanding cases on massive embezzlements of public funds, which continue to haunt the country.

Among corruption cases, which will continue to stand out in 2012, is the one involving Kagoda Agriculture limited, which is accused of stashing away about Sh40 billion from the central bank’s Payment Arrears Account (EPA).

Quality Finance Corporation Limited (QFCL) was reportedly also involved in the scandal. The company was in the process of paying back its share of the loot by December 2008 in an amnesty agreement with the government.

It is, however, still uncertain to date if the company has accomplished paying back the stolen public funds.

The mystery shrouded in the whereabouts of the embezzled public funds recovered from Kagoda and other EPA culprits in President Jakaya Kikwete’s amnesty scheme adds salt in the wound.     
Over half of the money said to have been recovered has failed to reach the intended projects, the Parliamentary Public Organizations Accounts Committee (Poac) investigations indicate. 

As Parliament’s measures against the Poac’s findings remain to be seen, the Prevention and Combating of Corruption Bureau will likely be in the limelight this year for its failure to work on the Kagoda saga.

Ironically, anticorruption watchdog boss Edward Hosea was among members of a special presidential committee formed to investigate EPA.

Other members included retired Attorney General Johnson Mwanyika and Inspector General of Police Said Mwema.
The presidential committee’s findings though are also still unclear, fresh power generating scam involving Abhijeet Group of India is being unveiled. The Group has been accused of evading paying taxes back home lately.

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