27 July 2012

Tanzania: 'TANESCO Does Not Need Subsidy'

Dodoma — THE Chairman of NCCR-Mageuzi, Mr James Mbatia (Nominated - NCCR), told a news conference here that the Tanzania Electric Supply Company (Tanesco) does not need any government subsidy because it makes a surplus of 50bn/- each month.

Mr Mbatia said that the power utility company can stand on its own feet. The most critical problem with the company is that most of its money is stolen by a syndicate of greedy officials some of whom are the firm's directors and managers.

Mr Mbatia told journalists that since the departure of the company's Managing Director, Mr William Mhando, a few weeks ago, Tanesco now collects a hefty average of 85bn/- a month, up from the average of 59.6bn/- registered early this year.

He said Tanesco, whose monthly operational costs stand at about 11bn/- have now resumed settling outstanding debts. He said that since the departure of Mr William Mhando and other officials, monthly monetary receipts have soared significantly.

He said that most of the frequent power cuts that have crippled national economy have actually been tailored to create business opportunities for a few unscrupulous officials inside the company, the board and greedy elements outside the company.

Mr Mbatia showed the journalists a copy of a Tanesco contract for the supply of office stationery, printing and computer consumables for 2011/12 (Contract No. PA/001/HQ/G/011), which shows that the tender was offered to M/s Santa Clara.

The contract is dated December 20, 2011. Mr Mbatia said that the contract was signed between Mr William Mhando and his wife Eva Mhando, the proprietor of M/S Santa Clara Supplies Company. The contract was worth 884,550,000/-. At one time Eva Mhando was working in the stores section in Tanesco.

Her husband, Mr William Mhando, was recently suspended to give way to a probe team which investigates financial embezzlements levelled against him. Mr Mbatia wondered how a firm like Santa Clara, which is worth only 10m/-is awarded a tender of over 884.5m/-.

"This is absurd and ridiculous. Tanesco was turned into a family affair," he charged. Mr Mbatia said that the scandalous canker in Tanesco has caused a rift even in Parliament. Other misunderstandings between some Members of Parliament emanate from financial scams in the Ministry of Energy and Minerals, he said.

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