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| Mr Mkulo |
The Controller and Auditor General (CAG) has revealed in his latest
report that the ministry of Finance was heavily involved in the sale of
plot No. 10 along Nyerere Road to
Mohamed Enterprises Tanzania Limited (MeTL), a fact that was denied last year
by the minister for Finance and Economic Affairs, Mr Mustafa Mkulo.
The CAG 2010/2011 Audit Report of public authorities and other bodies
reveals the sale of the plot was supposed to be overseen by the Board of
Directors of the Consolidated Holdings Corporation (CHC) but the CHC management
decision making was largely influenced or made by parties who were not part of
the CHC Board of Directors.
These revelations have come hardly a year after the shadow minister for
Finance, Mr Zitto Kabwe, demanded the
resignation of Mr Mkulo to pave the way for thorough investigations into the
minister’s alleged role in the squandering of public funds at the Treasury and
the CHC.
But in October, last year, Mr Mkulo was adamant and refused to step
down saying the allegations levelled by Mr Kabwe were baseless and lacked
truth.
“I think Mr Kabwe has personal
issues which he is pursuing,” he had said, adding:
“It is strange that the CAG report is not out yet and if you can recall
this issue started in the Parliament. If an MP has reached a point of
discussing such issues before the press, I think he has acted against
regulations.”
According to the CAG’s report, decision making in the CHC has highly
been influenced by external forces rather than the board of directors as
required by the corporate protocol.
The report by CAG Ludovick Utouh shows that major decisions were not
satisfactorily appraised and documented by virtue of supporting technical
appraisals, feasibility studies, legal opinions and expert reports.
According to the report the ministry of Finance, Treasury Registrar and
the then ministry of Planning, Economy and Empowerment influenced or made
decisions for CHC.
For example, Mr Utouh said in his report that correspondence between
CHC, MeTL, Ministry of Finance and the Treasury Registrar discussing, directing
and documenting various decisions on the sale of Plot No. 10 revealed that the
ministry and TR had direct involvement in the decision to sell the plot.
Not only the CHC board of directors was not involved in the sale of the
prime property located along Nyerere Road, but also there were various
irregularities in the deal to sell the property to METL.
According to the report, MeTL paid 2.046bn/- to acquire the land
without adhering to the requirements of the Public Procurement Act of 2004 and
its regulations of 2005.
The report also shows the government interference on CHC operation in a
controversial claim for road toll and security costs for facilitating access to
Plot No.192 (or Plot No.11) off Nyerere Road.
Mr Utouh said in the report that a demand note 954.72m/- (Value Added
Tax Inclusive) was issued by one DRTC trading company being a claim for road
toll and security costs it incurred in the course of facilitating access to the
plot.
“Subsequently, the Private Secretary to the Minister for Planning,
Economy and Empowerment issued a letter to PSRC Executive Chairperson directing
him to implement the DRTC claim,” said Utouh in the report.
The report also reveals that the DRTC general manager issued another
letter to CHC acting director general demanding an immediate settlement of 2.349bn/-.
Source: The Citizen,http://www.thecitizen.co.tz, reported by Frank Kimboy
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