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| Prof Katima |
The parliament should continue pressing for access by its members to
all contracts signed between the government and private investors in the
extraction of natural resources to get rid of the problems that shroud the
mining sector in the country.
According to the Chairman of Energy and Water Utilities Regulatory
Authority Consumer Consultative Council (EWURA-CCC), Professor Jamindu Katima,
most of the problems with contracts signed between the government and private
firms in the extractive industry emanate from secrecy.
"These contracts are top secret which not even parliament can
access easily," said Prof Katima who is also the Principal of College of
Engineering and Technology of University of Dar es Salaam.
He said all contracts in the gas subsector need to be reviewed if
proved to be faulty as was the case with Pan African Energy which faces
accusations of evading taxes in the tunes of billions of shillings while
inflating prices of gas supplied to Tanzania Electric Supply Company (TANESCO).
Apart from Songas and Pan African Energy, others companies extracting
and supplying natural gas include Canadian Wentworth Resources and French Morel
& Prom which are operating at Mnazi Bay in Mtwara region.
"Lawmakers should continue to press the executive so that they can
access all contracts and where necessary review them," the Nobel Laureate
said. Prof Katima who is a 2009 joint Nobel Laureate argued that Songas Limited
may have signed another bad contract with Tanzania Petroleum Development
Corporation which needs to be reviewed as its power tariffs to Tanesco are also
excessive.
The don however warned against any attempt to undo such contracts.
"I do not support severing such contracts because experience has shown
that it becomes twice a burden to the public," he pointed out naming
Dowans Holdings Limited as the latest example.
Lawmakers enraged by Pan African Energy's tax avoidance tactics which
denied government over 20.1 million US dollars (31.9bn/-) in the past
five years advised the executive to sever the contract with the local company which is a subsidiary of Virgin
Island based, Orca Exploration.
Minister for Energy and Minerals, William Ngeleja said Pan African
Energy is yet to explain a US $35 million 55.4bn/-) anomaly discovered
in the company's accounts books.
"The Ministry has decided to forward the matter regarding PAT to
the government negotiating team to discuss with the investor on the outstanding
amount," Mr Ngeleja told the House after a probe team established that the
company has been cheating on taxes.
Last year, ActionAid Sweden accused PAT of tax avoidance to the tune of
65 million US dollars (103bn/-)
between 2004 and 2011.
ActionAid Sweden censured Swedish International
Development Agency for investing in PAT using Swedish taxpayers' money despite
the fact that the company is denying the government billions of shillings in
taxes which affects budget allocation to key social sectors including
education.
''PanAfrican Energy has escaped taxes totaling $65 million in
Tanzania since 2004. $65 million would allow 175,000 girls to attend school
in Tanzania,'' the international activist group which also fights for equal
opportunity to education among girls and boys in poor countries, said in its
report. Local PAT officials have denied any wrongdoing.
Source: the Daily News,www.dailynews.co.tz, reported by Finnigan Wa Simbeye
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