Minister rejects Tanesco supplier choice
The Minister for Energy and Minerals, Prof Sospeter Muhongo.
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He said (Tanesco) could instead opt for Tanalec Ltd, of which the state-owned company has shares.
Arusha. The Minister for Energy and Minerals, Prof Sospeter Muhongo, has challenged the decision of Tanzania Electric Supply Company (Tanesco) to spend more than Sh15 billion for purchasing transformers from private companies
He said (Tanesco) could instead opt for Tanalec Ltd, of which the state-owned company has shares.
The firms that have won Tanesco’s tender to purchase transformers for the local electric supply company are Quality Group, which will buy transformers at more than US dollars 3mil and Intertrade of India that will spend US dollars 5mil for the gadgets.
Prof Muhongo gave his stand after visiting Tanalec Ltd in the company of officials from Tanesco, Rural Energy Agency and the Ministry, where he realised that Tanesco shunned the company to purchase transformers.
“Purchasing transformers from private companies instead of Tanalec has no other reason than involving corruption and it is not true that the Public Procurement Regulatory Authority (PPRA) restricts them,” Prof Muhongo said.
He said if it was true that the PPRA restricted Tanesco to buy transformers from Tanalec, he would hand over the issue to the president and other decision-making echelons.
“It is a fact that this PPRA is very controversial, it ruins this nation as a classroom to be built for Sh5mil, is built for Sh40mil, we need to become compatriots,” he said.
He said if Tanesco would buy transformers from Tanalec, it would help increase employment opportunities and boost Tanzanian’s economy.
“So, as the process of reviewing the PPRA law is in progress, Tanesco and REA have to buy transformers from your Tanalec plant,” he said.
At Tanalec, Tanesco owns 20 percent of shareholding, the National Development Corporation (10pc) and Transcentury Company of Kenya (70 per cent) as before privatisation, the government was owning 80 percent of shareholding.
Tanesco’s acting procurement manager, Jasson Katule, said the state-owned company failed to purchase transformers from Tanalec Ltd because the PPRA restricted them, as it wanted them to publicise tenders.
He said Tanalec was overshadowed by Quality Group and Intertrade in the final tender for the purchase of transformers after its tender documents were found with shortcomings.
