PAC wants Pinda, Muhongo, Werema out.

A parliamentary watchdog committee has recommended the resignation of Prime Minister Mizengo Pinda “to clear the air” over the handling of the hundreds of billions of shillings withdrawn from the Bank of Tanzania’s Tegeta escrow account in controversial circumstances and now the subject of heated debate across the country.

Others the Parliamentary Public Accounts Committee would like to see follow suit include Attorney General Frederick Werema, Energy and Minerals m
inister Prof Sospeter Muhongo and his deputy, Steven Masele.

The committee said the PM had repeatedly declared in the National Assembly that, contrary to popular belief, the money in the account belonged to Independent Power Tanzania Limited (ITPL) and not taxpayers – meaning the government.

In the committee’s opinion, that was enough proof that the PM had failed to execute to satisfaction his constitutional duties of overseeing government business.

The committee, whose views and recommendations on a report by the Controller and Auditor General’s Office were tabled in the National Assembly here yesterday, also called for the resignation of Werema and Muhongo – this to be followed by legal action in connection with economic sabotage and misuse of public office.

According to the report, which was tabled by PAC Chairman Zitto Kabwe and Vice Chairman Deo Filikunjombe, Werema sanctioned the withdrawal of money from the account before due diligence was conducted on a dispute pitting IPTL and the state-run Tanzania Electric Supply Company (Tanesco) and Muhongo stood as “chief auctioneer” for one of the parties to the controversial transactions.

The committee said the attorney general unlawfully sanctioned the exemption of Value Added Tax (VAT) to the tune of 23bn/- and would not even correctly advise the central bank, the Treasury and Energy and Minerals ministry on the matter.

It noted that the withdrawals and disbursements were in contravention of the law and all those implicated ought to return the amounts they received, with the government thereafter ensuring that their properties were confiscated.

Public officials reported to have been paid money withdrawn from the account include Lands, Housing and Human Settlements minister Prof Anne Tibaijuka (1.6bn/-), former Attorney General Andrew Change (1.6bn/-), and former Energy Minerals ministers William Ngeleja (40.4m/-) and Daniel Yona (40.4m/-).

Among the others named are former legislator Paul Kimiti (40.4m/-), Tanesco board member Dr Enos Bukuku (161.7m/-), Justice Prof Eudes Ruhangisa (404.25m/-), Justice J A K Mujulizi (40.4m/-), RITA official Philipo Saliboko (40m/-), former Tanzania Investment Centre executive director Emmanuel Ole Naiko (40.4m/-) and Tanzania Reveue Authority executive Ruth Apolo (80.8m/-).

Religious leaders named in the saga include Bishop Methodius Kilaini (80.9m/-), Bishop Eusedius Nzigirwa (40.4m/-) and Reverend Alphonce Twimann (40.4m/-).

The committee told the House that it had established that the escrow account held taxpayers’ money, which meant that appropriate action ought to be taken even against civil servants indirectly involved in the scandal. These include Energy and Minerals permanent secretary Eliakim Maswi and his Finance ministry counterpart, Dr Servacius Likwelile.

The committee also recommended that the central bank declare that Mkombozi Bank and StanBic were financial institutions associated with money laundering concern for their involvement in suspicious payments and other transactions associated with the escrow account.

It further called upon the government to establish a special department – or even a fully fledged court of law – to handle grand corruption cases.

The committee stated that there was no doubt whatsoever that the Pan African Power boss does not legally own IPTL and had used fake documents to claim money in the escrow account at the expense of the government.

It strongly recommended that the PAP boss be arrested and prosecuted for money laundering charges, tax evasion and theft.

The committee also recommended the Tanesco Board of Directors be immediately dissolved and all its members prosecuted for misuse of public office.

National Assembly Speaker Anne Makinda later told the House that the government would respond to the PAC’s views and recommendations charges raised upon them.