Kafulila’s escrow battle in Parliament thwarted

Dodoma. Efforts by Kigoma South legislator David Kafulila (NCCR-Mageuzi) to move Parliament to press the government on the implementation of resolutions on the Tegeta escrow account scandal were thwarted yesterday.

Mr Kafulila wanted Parliament to exercise its oversight mandate and thus task the government to table a report outlining implementation of resolutions reached by Parliament at the climax of the debate on the scandal some months ago.

But, his argument was dismissed on grounds that the issue was before the court and because Parliament had already closed the debate on the matter, its standing orders do not allow it to revisit the same.

At the centre of Mr Kafulila’s argument was the continued payment of the monthly capacity charge of Sh5 billion to Pan African Power Solutions (PAP) by Tanesco. The payment is done because of the power purchase agreement Tanesco entered with Independent Power Tanzania limited (IPTL). PAP had controversially acquired IPTL.

Mr Kafulila wondered why the government was struggling to get money for power projects while it pays PAP the colossal sum each month, while Parliament, in one of its resolutions, had directed the government to stop the payments.

However, Energy and Minerals minister George Simbachawene challenged Mr Kafulila saying that stopping the capacity charges payments to PAP was not among the eight resolutions adopted by Parliament during its Tegeta Escrow saga debate.

Besides, Mr Simbachawene said, even if the issue was one of the resolutions it would have been very hard for the government to implement it because it has legal implications.

He said that Tanesco had entered into the power purchase agreement with IPTL, which introduced the capacity charges and the contract was still valid.

“The issue here is that the contract is still valid and the company still produces power which Tanesco buys. How do you terminate the valid contract which has no problems is the issue,” he said.

Mr Simbachawene, who is a lawyer by profession, said the issue was not paying PAP but the legal contract which Tanesco entered with another company.

Meanwhile, the government admitted yesterday that it has failed to enforce a law enacted several years ago which require major mining companies to register with the local stock exchange market.

Energy and Minerals minister George Simbachawene told Parliament that the government failed to enforce the law because it had a number fo legal defects.

“It should also be remembered that at the time when the law was being passed the government had already entered into contract with a number of mining companies,” he said.

But, in order to ensure that locals benefit from the natural wealth, Mr Simbachawene said the government was planning to enact two laws, all aiming at transparency on extractive industry as well as on local content.

“I would like to urge Members of Parliament to support us when we bring these two laws here for endorsement. They are the ions which will ensure that local people benefit from their mineral wealth by pushing the companies to declare what they earn,” he said.