Tanzania’s Expensive Energy Deal Sparks Corruption Allegations
A controversial energy deal worth millions of dollars has left many questioning the national interest behind the agreement. The International Centre for Settlement of Investment Disputes (ICSID) was presented with the case in 1998, but charges of corruption were eventually dropped due to a lack of sufficient evidence.
The Controversial Deal
The deal, involving the Independent Power Tanzania Limited (IPTL), has been marred by allegations of fraud and corruption. In 2014, the Public Accounts Committee launched an investigation into alleged fraudulent payments from the Tanzanian Electric Supply Company (TANESCO) to IPTL and senior officials of the ruling Chama Cha Mapinduzi (CCM) party.
Lack of Accountability
Despite overwhelming evidence of malfeasance, then-President Jakaya Kikwete settled the matter with symbolic resignations and minor prosecutions. Scholars have linked grand corruption in Tanzania to the nature of elite politics within the ruling CCM party.
The Relationship between Politics and Business
The relationship between foreign and local private sectors and the state has changed significantly since economic liberalization in the mid-1980s, leading to extensive informal relations between top leadership and prominent members of the small domestic private sector.
Challenges Ahead
President John Magufuli has vowed to root out corruption in the country, promising “no mercy” for anyone giving or taking bribes. However, rooting out political corruption is not an easy task in Tanzania’s context. The president holds almost imperial powers, and auditing expenditures of the presidency is forbidden by law.
Elections and Transparency
Guaranteeing clean elections is also a challenge, given that political parties do not disclose donations received from private individuals or organizations. An audit report for the financial year 2016/2017 noted that the main opposition party, CHADEMA, had failed to disclose how and why it used donations to pay an individual.
Political Party Laws
Existing laws such as the Political Parties Act of 2015 disproportionately benefit the incumbent CCM, while a pending bill could erode the opposition’s rights even further. All Tanzanian political parties are regulated by a registrar who has been accused of being biased towards the ruling party.
Conclusion
The controversy surrounding IPTL highlights the need for greater transparency and accountability in Tanzania’s energy sector. As the country looks to increase its energy production, it is essential that corruption allegations are thoroughly investigated and addressed to ensure that the national interest is protected.
Recommendations
- Increase transparency in political party funding and donations
- Strengthen laws and regulations governing political parties
- Ensure impartiality of regulatory bodies
- Conduct thorough investigations into corruption allegations
- Guarantee accountability for those found guilty of corruption
- Protect the national interest by ensuring that public funds are used effectively and efficiently.