Escrow resolutions

The government and members of Parliament have unanimously agreed to conduct further investigations on all those implicated in the escrow account saga.


Parliament has also approved freezing of all accounts and seizure of properties of all persons implicated in the escrow scandal and for involved public officials to be relieved of their duties.

It was also resolved that the Bank of Tanzania (BoT) take legal action against all banks and financial institutions involved in the various transactions of the escrow account money.

The House also heard Public Accounts Committee (PAC) members’ discovery of Harbinder Singh Sethi was never the true owner of Pan Africa Power Solutions Ltd (PAP).

PAC holds that all government agencies including the Tanzania Revenue Authority (TRA), Controller and Auditors General (CAG) and the Prevention and Combating of Corruption Bureau (PCCB) discovered forgeries in Seith’s PAP ownership. 

Earlier, Chairman of the Parliamentary Public Accounts Committee (PAC) and the Kigoma – North MP (Chadema) Zitto Kabwe, called for the nationalization of IPTL machineries and other assets.

He also clarified to the National Assembly that the case before Justice Utamwa was not on the escrow account but on differences between Independent Power Tanzania Limited (IPTL) to Pan Africa Power Solutions (PAP).

He told the House that Tanzania Electric Supply Company Limited (TANESCO) was up to last year, losing over 400bn/- because of pervasive failure to observe rules and regulations.

On his part Attorney General Justice Fredrick Werema, who was also implicated in the scandal, described dealings between IPTL and TANESCO as frivolous and need immediate action.

Werema also maintained that his office did not issue any tax holiday to either parties to the besieged escrow saga.

 “What my office did was to advice the ministry according to the court ruling and nature of the agreement between ITPL and TANESCO” the AG claimed.

Deo Filikunjombe (CCM)Cited paragraph 12 of the PAC report saying the CAG was very clear in facts that part of the sum included capita gain and VAT taxes. He said the trend should remain that all those connected with scandal should step down.

He also explained that according to PCCB commissioner investigations had revealed that TANESCO as public institution paid large sums to BOT thus maintained that the money was public property the same was the position of TRA.

While Dr Hamisi Kigwangala-Nzega (CCM)called upon the ruling CCM MPs to remain faithful to the respect of democratic society  and drop all the sense of politics on the matters with public interest and adhere to the rule of law.

He said the IPTL saga was surrounded with grand corruption deals, that was entirely defended by the minister for energy and minerals Prof. Sospeter  Muhongo.

Kigwangala further said the minister lied to the parliament that the funds belonged to the IPTL and not public Property “he questioned that if the money could belong to private firm or person why then could CAG audit the accounts” while CAG is only manated to audit public firms.

He was also backed by Luhaga Mpina Kisesa MP (CCM)……. that principal secretary ministry of finance cautioned the minister for energy and minerals and the Attorney  General office that it was not prudent to withdraw the money from BOT before the dispute  between TANESCO and IPTL was amicably solved.

The secretary also went further warning that the money had huge sums of public funds in it that could not be withdrawn from the central bank before proper computations were done and the public funds is duly put into the public coffers.