Tanzanian PM to resign over energy corruption scandal

Tanzania's prime minister has tendered his resignation after being implicated in an energy deal corruption scandal.

"Because I have been linked to this scandal, I have decided to

write to the president asking to be relieved of my duties," Edward

Lowassa told MPs.

He has denied that his office was involved in improperly

awarding a contract to US-based electricity company Richmond

Development in 2006.

 

The firm failed to provide emergency power during a power crisis

in 2006.

 

The BBC's Vicky Ntetema in Dar es Salaam says a drought early in

2006 had left water levels in dams low leading to severe power

cuts.

 

Richmond was contracted to bring in generators to provide 100

megawatts of electricity each day.

 

But a parliamentary inquiry, launched in November, found that

the generators failed to arrive on time and when they did, they did

not work as required.

 

By the time the company was ready to start operations,

Tanzania's power problems had been resolved.

 

Despite these failings, the government was contracted to pay

Richmond more than $100 000 a day.

 

Mr Lowassa's office later influenced the government's decision

to extend Richmond's contract despite advice to the contrary from

the state-run energy company Tanesco, the inquiry alleges.

 

Richmond "lacked experience, expertise and was financially

incapacitated", ruling party MP Harrison Mwakyembe, who headed the

investigation, is quoted by Tanzania's Guardian newspaper as

telling parliament on Wednesday.

 

Richmond transferred its tender to another company, Dowans, last

year.

 

The prime minister, who has denied any links to the scandal, has

suggested the committee was given the wrong information.

 

"I've thought long and hard about this issue.

 

I've offered my resignation without any ill motive," he said in

an emotional speech to parliament.

 

"I've done it to as a sign of my responsibility and to register

my disagreement with the manner in which the committee misled

parliament."

 

The BBC's correspondent says Mr Lowassa, who entered politics in

the 1980s, is a very close ally of President Jakaya Kikwete who

came to power in 2005.

 

Under President Ali Mwinyi, he was relieved of his duties as a

land minister because of allegations of corruption.

 

The BBC's Africa editor Mary Harper says the offer of

resignation from such a senior member of government for alleged

links with corruption is unprecedented in Tanzania, and unusual in

Africa.

 

But Tanzania has been getting more serious about corruption

since President Kikwete was elected.

 

Just last month, the governor of the central bank was sacked

following the disappearance of public funds from the bank.

 

BBC News

 

He has denied that his office was involved in improperly awarding a

contract to US-based electricity company Richmond Development in

2006.The firm failed to provide emergency power during a power

crisis in 2006.The BBC's Vicky Ntetema in Dar es Salaam says a

drought early in 2006 had left water levels in dams low leading to

severe power cuts.Richmond was contracted to bring in generators to

provide 100 megawatts of electricity each day.But a parliamentary

inquiry, launched in November, found that the generators failed to

arrive on time and when they did, they did not work as required.By

the time the company was ready to start operations, Tanzania's

power problems had been resolved.Despite these failings, the

government was contracted to pay Richmond more than $100 000 a

day.Mr Lowassa's office later influenced the government's decision

to extend Richmond's contract despite advice to the contrary from

the state-run energy company Tanesco, the inquiry alleges.Richmond

"lacked experience, expertise and was financially incapacitated",

ruling party MP Harrison Mwakyembe, who headed the investigation,

is quoted by Tanzania's Guardian newspaper as telling parliament on

Wednesday.Richmond transferred its tender to another company,

Dowans, last year.The prime minister, who has denied any links to

the scandal, has suggested the committee was given the wrong

information."I've thought long and hard about this issue.I've

offered my resignation without any ill motive," he said in an

emotional speech to parliament."I've done it to as a sign of my

responsibility and to register my disagreement with the manner in

which the committee misled parliament."The BBC's correspondent says

Mr Lowassa, who entered politics in the 1980s, is a very close ally

of President Jakaya Kikwete who came to power in 2005.Under

President Ali Mwinyi, he was relieved of his duties as a land

minister because of allegations of corruption.The BBC's Africa

editor Mary Harper says the offer of resignation from such a senior

member of government for alleged links with corruption is

unprecedented in Tanzania, and unusual in Africa.But Tanzania has

been getting more serious about corruption since President Kikwete

was elected.Just last month, the governor of the central bank was

sacked following the disappearance of public funds from the

bank.BBC News

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