Friday, February 08, 2008

TANZANIA'S LEADER SACKS CABINET !

The former prime minister feels the committee misled parliament. Tanzania's president has dissolved his cabinet in the wake of a corruption scandal that forced the resignation of the prime minister and two ministers.
The three were implicated in an energy deal involving a US-based electricity company which is said to be costing the country more than $100,000 a day.
They deny any wrongdoing but there has been a public outcry about the affair.
The firm was hired in 2006 to provide emergency electricity during a power crisis, but MPs say it failed to do so.
President Jakaya Kikwete's move comes days ahead of a planned visit to Tanzania by President George Bush.
Correspondents say pressure has been mounting on the government to crack down on officials linked to corruption.

A parliamentary committee set up to investigate the energy deal revealed that the government was losing more than $100,000 a day to the company that was awarded the contract.
Political analyst Mwesigye Baregu says the resignations allow the president to reposition his government and restore public confidence in the face of sharp criticism.
"The storm has been gathering in the past two years and people have been very dissatisfied with the performance of some ministers," he told the BBC's Network Africa programme.
Former Prime Minister Edward Lowassa made an emotional speech to parliament when he resigned on Thursday, saying he felt the committee had misled parliament.
Energy and Minerals Minister Nazir Karamagi and Ibrahim Msabaha - a former energy minister and now in the East African Community ministry - resigned hours after him.
The BBC's Vicky Ntetema in Dar es Salaam says Richmond Development was contracted to bring in generators to provide 100 megawatts of electricity each day after a drought early in 2006 left low water levels in dams leading to severe power cuts.
By the time the company was ready to start operations, Tanzania's power problems had been resolved.
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.
The parliamentary committee has recommended that those implicated in the scandal be prosecuted but observers say the onus remains with President Kikwete.
BBC NEWS REPORT.

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