PCCB Boss, Edward Hosea
Dar es Salaam, Tuesday November 4 2014: The Prevention and Combating of Corruption Bureau (PCCB) has submitted to Prime Minister Mizengo Pinda its investigation report about the multibillion-shilling Tegeta escrow account, it was confirmed yesterday.
The PCCB move comes as the Controller and Auditor General (CAG) was yesterday accused of deliberately delaying the final report to prevent Parliament from debating it.
But the move also came as a relief for the government, which has been under pressure by the donor community to complete investigations and prosecute those responsible for the scandal.
Donors announced last month that they were suspending general budget support totalling about Sh1 trillion, pending the completion and outcome of the investigation.
When the $122 million (Sh207billion as per the current exchange rate) escrow saga first emerged, the CAG’s office promised to finish the forensic audit within 45 days.
PAP is owned by Kenyan tycoon Harbinder Singh Sethi and his son, and claims to have lawfully acquired 70 per cent of Independent Power Tanzania Limited (IPTL) from Mechmar Corporation, which is based in Malaysia.
The CAG initially asked for 45 days, but has spent about 200 days, or roughly six months, conducting its investigation. PCCB carried out a similar investigation over a much shorter period.
The Citizen understands that PCCB completed its in-depth investigation into the IPTL scandal in September after questioning various witnesses and suspects in and outside the country.
Responding to a question asked by journalists during the anti-corruption symposium for southern African countries in Mwanza yesterday, PCCB Director General Dr Edward Hoseah, confirmed that he submitted the final report to the Prime Minister last week.
Dr Hoseah said he submitted the report to the Prime Minister because he was the one who directed him to investigate the matter.
However, the PCCB chief did not disclose the contents of his report.
In another development, PAC chairman Zitto Kabwe yesterday accused the CAG’s office of deliberately delaying the submitting of the audit report to ensure it was not debated during the November parliamentary sitting, which begins today.
Mr Kabwe had earlier given the CAG until October 31 to submit the report so that it could be lined up for debate in Parliament.
He said the delay meant that Parliament would not be able to process the report as earlier expected.
“The CAG’s office is putting its reputation in jeopardy. The PCCB report has already been submitted to the Prime Minister, but the CAG report has yet to be handed in. Why?” Mr Kabwe queried, adding, “Members are worried that something fishy is going on…there is no concrete reason to delay the report.”
Mr Kabwe further accused the acting CAG, Mr Francis Mwakapalila, of harbouring a hidden agenda, saying he had for the past two weeks been giving flimsy excuses for not submitting the report to Parliament as earlier expected.
This means that the earliest the report can be debated is February, next year.
But the delay also means that donors will continue to withhold their budget support, further affecting the government’s plans as outlined in the 2014/15 budget.
Contacted yesterday, Mr Mwakapalila said, “I have the report here with me…I’m still reading it…I’m not yet through with it.”
Asked when will he submit the report, he responded, “I can’t say when exactly the report will be submitted because I’m still working on it.”
The acting CAG also denied allegations that he was deliberately dragging his feet to ensure the report is not debated in the parliamentary sitting that will take place in the next two weeks.
Asked last week about the investigations conducted by PCCB and CAG, PAP Company Secretary Joseph Makandege said the move was in contempt of court, adding that the matter had already been decided by the High Court of Tanzania.
Mr Makandege and Mr Sethi insist that the acquisition of the 70 per cent IPTL stake was aboveboard.
The Citizen
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