The Citizen (Dar es Salaam)
Richard Mgamba
18 February 2008
The war on corruption and a good record on good governance and democracy were among the criteria on which Tanzania qualified for hundreds of millions of dollars in grants from the US, President George W. Bush said yesterday.
Addressing a joint news conference with President Jakaya Kikwete at State House, Dar es Salaam, President Bush said the US was not ready to support looters who stole public funds.
The remarks came amid questions as to why the US was suddenly showing strong interest in Tanzania, with the Bush administration pouring about $750million (Sh862 billion) into the country through the Millennium Challenge Corporation (MCC).
Tanzania is among the biggest beneficiaries of funds from the MCC, which has committed over $5.5 billion (sh6.6 trillion) through compacts with 16 African countries to reduce poverty.
"America doesn't work with thieves," Mr Bush said, adding that the decision to back Tanzania's efforts to fight poverty had been prompted by President Kikwete's stand against corruption.
"We have big trust in President Kikwete and his regime that is why we have decided to support major development (in Tanzania)," Mr Bush said before signing with President Kikwete an agreement for a $698 million (Sh838 billion) grant to stimulate economic growth in Tanzania.
President Bush, who was in a jovial mood during the function, added: "Our money is meant to help humanitarian causes. The American people are not ready to see their money not being used for the targeted objectives.
"My hope is that such an initiative will be part of an effort to transform parts of this country to become more hopeful places." The grant is meant to improve roads, electricity and water supplies.
President Kikwete told his guest that the grant "speaks volumes about how deep you have Tanzania in your heart."
Tanzania is the focal point of Mr Bush's African tour intended to showcase the success of his humanitarian policies on the continent during a presidency dominated by his war on terrorism.
African leaders have been accused of looting of public and donors funds, accumulating massive wealth in the process while leaving the vast majority of people in their countries living in abject poverty.
Corruption costs African countries an estimated 25 per cent of their combined national income, or some $148 billion a year, according to a report released by Extractive Industries Transparency Initiative (EITI) in Abuja in 2006.
For instance, Tanzania has received more than $20 billion through aid and loans in the past four decades, but development achieved during that period has been minimal with mismanagement of resources cited as the main stumbling block.
In recent months, President Kikwete's government has taken measures to fight corruption by allowing investigations into the $179 million Richmond tender scandal, $131 million External Payments Arrears scam and controversial mining contracts.
Mr Kikwete, who was described by President Bush as a "smart and role model leader in Africa", has ordered the recovery of money looted from the Bank of Tanzania through the EPA account.
On the post-election violence in Kenya, Mr Bush reiterated that he supported the idea of a power-sharing deal in mediation talks led by former UN secretary-general Koffi Annan.
Talks between Mr Bush and President Kikwete, who is chairman of the African Union, centred on conflicts in Kenya, Darfur and Zimbabwe.
Answering a question posed by this reporter, Mr Bush called for a power-sharing agreement to end the post-election conflict in Kenya that has left about 1,000 people dead, more than 300,000 internally displaced and property worth billions of shillings destroyed.
He said US Secretary of State Condoleezza Rice would be in Nairobi today to meet with President Mwai Kibaki and opposition leader Raila Odinga in a move aimed at supporting the initiative to end the political impasse in Kenya.
"We have discussed this with President Kikwete and tomorrow Condi will be in Nairobi to see how can we help make the peace process move on."
President Bush, who began a five-nation visit to Africa in Benin last Friday, is sending Dr Rice to Kenya to back two-week-old mediation efforts chaired by Mr Annan.
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