Prime Minister orders seizure of passports of shipbuilders

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Summary

  • Mr Majaliwa who addressed leaders and residents of the region after inspecting the building of the ship said the company has been paid 80 percent of the agreed payment bult the work had only reached 65 percent.
  • He said in accordance with the contract, the construction of the ship was supposed to have reached 95 percent by yesterday.

Mwanza. Prime Minister Kassim Majaliwa yesterday directed the Immigration Department in Mwanza Region to seize the passports of seven contactors building a ship in Lake Victoria over allegedly failing to honour the contract, including sub-contracting another company to do the job, and also cutting the workforce from 118 to just 22 currently on site.t.

The construction of the MV Mwanza Hapa Kazi Tu which has a capacity of carrying 1,200 passengers and other 400 tonnes of cargo, is being implemented by South Korea's Gas Entec Ship-Building Engineering Co, Ltd at a cost of Sh97.5 billion.
Mr Majaliwa who addressed leaders and residents of the region after inspecting the building of the ship said the company has been paid 80% upfront of the agreed payment but construction work had only reached 65%.

He said in accordance with the contract, the construction of the ship was supposed to have reached 95% by yesterday.

“I have directed the regional head of the Immigration Force to seize their passports immediately and ensure nobody gets out of this region until the work of the ship building is completed. I’m told there are seven contractors but only three are here. Where are others? Find them,” queried Mr Majaliwa.

“I have inspected the ship construction and I’m not satisfied with the progress. In their explanation, I have discovered that the contract we have entered with Gas Entec, the latter has sold its shares without notifying the government.”

“So, when the buyers of the shares came, they were surprised to see the ship being under construction because it was out of their sales agreement,” revealed Mr Majaliwa.

The Prime Minister said he communicated with President Samia Saluhu Hassan, who agreed on the move he had taken against the contractors for breach of the contract.