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CORRUPTION – GOOD NEWS

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There have been two items of good news in the anti-corruption campaign during recent weeks.

Money recovered
Minister of Finance Mustafa Mkulo has announced that the government has recovered Shs 72 billion ($53 million) from the Shs 133 billion (98.5 billion) of the Bank of Tanzania’s External Payments Arrears account which was misappropriated.

Air Traffic Control System – RADAR
In the very long running Air Traffic Control System (Radar) case, (see earlier issues of TA) dramatic news came from the UK’s Senior Fraud Office (SFO) in January when Britain’s BAE Systems finally accepted responsibility in several corruption cases around the world including the one in Tanzania. It agreed to pay penalties in the US and the UK totaling several hundred million dollars to settle the cases against it.

Under the deal, BAE will pay $400m (£255m) in the US and $47m (£30m) in the UK, the latter being a penalty for over-pricing the cost of the air traffic control system it sold to Tanzania several years ago. Leading up to the deal, the SFO had named Minister Andrew Chenge, businessmen Sailesh Vithlani and Tanil Somaiya, and former Governor of the Central Bank of Tanzania, Dr Idris Rashid as the key suspects. SFO investigators established that BAE Systems had secretly paid a $12m commission into the Swiss bank account of Sailesh Vithlani who was alleged to be the ‘middleman’.

According to details from the SFO’s investigation, the actual price of the military radar system sold to Tanzania was far less than the money paid by Tanzania which had to borrow from Barclays Bank to help it to pay. Under the new deal between the SFO and BAE Systems Tanzania will get a refund of some $28 million.

Legal issues
Before Tanzania can receive the money however, a number of legal issues have to be dealt with. According to ‘Africa Confidential’, British lobbyists ‘Corner House’ obtained an injunction on March 3 to freeze BAE’s plea-bargain deal with the SFO pending a decision on whether there should be a full judicial review. Africa Confidential reported that, if the deal were blocked, the SFO would probably proceed with a corruption case against BAE on some of its other contracts, followed by a prosecution over its contract for the air traffic control system in Tanzania.

The SFO had earlier indicated that some of the cash would become ‘an ex gratia payment for the benefit of the people of Tanzania’.
However, BAE was insisting that it would not pay the money to the government but that it would be given instead to local charities dealing with humanitarian aid in Tanzania. In Tanzania, Minister for Foreign Affairs Bernard Membe insisted that the compensation should be paid to the government.

Some legal are said to believe that BAE may be anxious to avoid any legal implications that might arise if Tanzania finally chose to arrest and prosecute the key suspects. By paying the billions to charity organisations, it would appear that the donation would be part of the company’s ‘corporate social responsibility’ funding.

Suzan Hawley of ‘Corruption Watch’, a UK based anti-corruption watchdog was quoted as saying that “This is a trick chosen by BAE to avoid being implicated directly by a third party, but it’s an old style that won’t get them off the hook.”

‘Corruption Watch has filed an application at a UK court seeking a review of the SFO and BAE settlement.

Director of Tanzania’s Prevention of Corruption Bureau Edward Hoseah has written to the SFO welcoming the promised payment and suggesting procedures to ensure that the repatriation of the funds would be done transparently.

It is understood that BAE’s plea-bargain deal in Britain would has no automatic effect on the Tanzanian government’s own investigations. These are continuing – (from the Guardian on Sunday, Nipashe various British and Tanzanian newspapers and other sources – Editor)

“We need a reaction” US Ambassador
In early March US ambassador to Tanzania Alfonso Lenhardt began to throw his weight behind the crusade against corruption when he challenged the government to step it up by ensuring that suspected or proven corrupt leaders are prosecuted. “For the monster of grand corruption to be eliminated”, he said “strong deterrent signals are required, including jail sentences for leaders found guilty along with confiscation of their ill-gotten wealth. Indeed, the government should not continue to beat around the bush on matters that are before the eyes of the public; we need a reaction and a system that will throw corrupt senior civil servants and politicians where they belong – behind bars.” The ambassador went on to say that it was heartening to note that there were already encouraging steps being taken to tackle corruption, “but more needs to be done” he said. “The vast majority of Tanzanians did not like to see leaders implicated in serious graft scandals being left scot-free, untouchable and unaccountable….studies conducted across the world have shown that bribery, fraud, favouritism, and cronyism all breed and deepen poverty in the society. That is why countries like Tanzania remained poor as their otherwise rich development resources were daily depleted through such corrupt practices

The Richmond Case
Investigations into the complicated Richmond electricity generation case (see earlier issues of TA) are continuing. According to Tanzania Daima, the company which took over from Richmond after it withdrew – Dowans – is understood to be indebted to the tune of $ 2.4 million for breach of the contract it entered into with the Ministry of Energy and Minerals and which it had inherited from Richmond. Dowans apparently wanted to sell the generating plant it had constructed in Dar es Salaam but it was stopped by the court. The government is now demanding a penalty for failing to supply Tanzania with power.

The political implications
As indicate above, the Richmond scandal is now having repercussions on the political scene. The investigative journal ‘This Day’ has been looking into the matter. Extracts: ‘Whatever happens in the upcoming months of election year 2010, history will always show that prior to the Richmond affair, National Assembly Speaker Samuel Sitta and former Prime Minister Edward Lowassa were close political allies and both were key members of the powerful campaign machinery that delivered a landslide victory for President Jakaya Kikwete in 2005…it is because of this, that the new stand-off between the two (see above) is proving so damaging to the ruling CCM party’s aspirations to stay united…. Following the 2005 general election, Lowassa and other members of the pro-Kikwete campaign lobby better known as Mtandao (the network) backed Sitta’s candidature for the position of Speaker and, thanks in large part to active campaigning by senior Mtandao members, Sitta eventually won the speaker’s position by defeating the incumbent speaker, Pius Msekwa, in a tough contest. In December 2005 Lowassa was endorsed by parliament as Prime Minister….But then came the Richmond scandal. By 2008, Lowassa and Sitta were at loggerheads over the manner in which parliament – with Sitta’s backing – was handling the Richmond case as it grew in seriousness…. It was Lowassa who had supervised the process that led to the awarding of the dubious government power generation contract Richmond against expert opinion. TANESCO had reluctantly signed the contract with Richmond at night at the headquarters of the Ministry of Energy and Minerals….Richmond did not perform and a parliamentary team delivered a damning report on the deal which implicated Lowassa and others who promptly tendered their resignations.

The ‘Mramba’ case
The case of former Finance Minister Basil Mramba, and his counterpart Daniel Yona (following three years of investigations by the Prevention and Combating of Corruption Bureau and the police into the suspicious hiring of Alex Stewart Corporation to audit gold production in Tanzania) has been adjourned again because the magistrate was away. The hearing of the case started in November 2009. Four prosecution witnesses have so far testified.

TANZANIA AND CHINA

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There are more than 100 Chinese companies doing business in Tanzania with an accumulated direct investment of more than 200 million U.S. dollars in construction, textiles, agriculture, medicine and infrastructure, according to the Chinese news agency Xinhua quoted in the Guardian. Reports in 2008 showed business between China and Tanzania had reached $102 million in 1997, a jump of 22% over the previous year. The growth rate of trade between the two countries has developed steadily since 1994, surpassing the 15 percent mark for three years in a row. The rise of the trade is attributed to the political stability and economic reforms in Tanzania, which have increased the confidence of Chinese businessmen.

In August 2009 Minister for Agriculture, Food Security and Cooperatives, Stephen Wasira, had announced that “Tanzania welcomes Chinese investment and is expecting more investment in the agriculture sector to boost bilateral cooperation and enhance food production.”

Four more agreements
Tanzania and China signed four more grant and concessional loan agreements on 15 January 2010 amounting to over Shs 239 billion for various projects including the Information, Communication and Technology (ICT) Infrastructure Network Project and the International Airport Terminal II Project in Zanzibar and, very significantly, the transformation of the Tanzania Zambia Railway Authority (TAZARA).

Increasing concern for Chinese nationals
However, in March, the Chinese embassy expressed concern for the safety of its nationals doing business in Tanzania. It asked for security measures to be strengthened to protect the safety of Chinese investors in Tanzania following the murder of two businessmen in 2008 and another in Dar in 2009. In a statement, the Chinese Business Chamber of Tanzania demanded that the police speed up the investigation into the latest killing – Guardian.

AIR CRASH IN MWANZA

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The Air Tanzania Boeing 737 -200 after crash-landing at Mwanza airport

An Air Tanzania plane, which was carrying 45 passengers from Dar es Salaam, was heading to its final destination in Mwanza on the morning of March 2 when the captain reported trouble to ground control. Visibility was near zero and the captain said he couldn’t land safely and would go to the nearest alternative airport which was Kilimanjaro.

After ten minutes however he changed his mind and decided to land even though he could see a pool of water on the runway. When the plane hit the puddle, the left engine allegedly sucked in water and turned off suddenly, leading him to lose control of the aircraft. The plane then skidded off the runway, causing some panic among the passengers. The plane skidded for nearly a kilometre before coming to rest at around 7:45am. Fire fighters managed to evacuate all 45 passengers and seven crew members, none of whom suffered serious injuries.

The plane suffered serious technical damage that might rule out any possibility of flying again as a passenger aircraft – Guardian on Sunday.

The future of Air Tanzania
It is understood that the government is continuing to look for investors for part of Air Tanzania as it wishes to bring the airline back to full strength so that it can take advantage of growing markets in the Democratic Republic of Congo, Zambia, Malawi and China. In December 155 jobs were cut leaving only 182 on the pay role.

Talks between the government and Chinese company Sonangol International Holdings Ltd, which has a substantial business in the oil, gas and minerals industries and which has started construction of a third terminal at the JK Nyerere International Airport in Dar es Salaam, are said to be well advanced.

Air Tanzania Corporation was privatised in December 2002 in a deal in which South African Airways acquired 49 per cent of the shares but the agreement broke down.

The US firm Celtic Capital Corporation of Texas has also indicated that it would be ready to take over the operations of Air Tanzania. Five firms based in the US, UK and the United Arab Emirates have also shown an interest – The East African.

FAITH NEWS

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Secular law
The Ministry of Home Affairs has told local authorities to take measures against religious denominations that are violating the law. A Ministry spokesperson told Habari Leo that though the government is for freedom of worship, when it comes to secular laws they have to be enforced. He said churches have mushroomed all over the country, some of them forbidding their children from singing the national anthem in schools or seeking medical treatment in hospitals.

Evangelicals advance
With an increase of about 670,000 (14.5%) new members last year, it has been claimed that Tanzania now has the second largest (after Sweden) Lutheran Church congregation in the world. Tanzania’s record increase brings its membership to a total of 5,300,000.

The Evangelical Lutheran Church (ELC) of Tanzania, which is affiliated to the Lutheran World Federation (LWF), also holds the top position in Africa. Worldwide the Church has an estimated 70 million adherents. Even though all the Lutheran churches in Africa were shown as having recorded high growth rates, Tanzania had the strongest showing.

In recent years mainstream churches have been showing alarm at the high rate at which they have been losing members to mushrooming evangelical sects. The Catholic Church, with a membership of 9.5 million members or about 25% of the total population in Tanzania, remains the largest Christian group in the country – The Citizen.

Praying for a coalition
The Society for Islamic Propagation (UAMSHO) has been arranging services to pray for a coalition government in Zanzibar. Head of the society Sheikh Azan said that the aim was to pray for the success of the ‘rapprochement’ between President Amani Karume and CUF Secretary General Seif Sharif Hamad and for the formation of a coalition government – Nipashe.

CROCODILE REMAINS IDENTIFIED

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Mandibular remains of Crocodylus anthropophagus. Brochu CA, Njau J, Blumenschine RJ, Densmore LD (201 0) A New Horned Crocodile from the Plio-Pleistocene Hominid Sites at Olduvai Gorge, Tanzania. PLoS ONE 5(2): e9333


The Guardian, in article dated February 27 revealed that Tanzanian and American scientists have finally identified the remains of a 7.5-metre-long man-eating crocodile in the Olduvai Gorge. They estimate its age to be 1.8 million years which could make it the largest predator ancient humans in the region could ever have encountered.

Dr Fidelis Masao, a researcher in the Gorge, said that the remains would be returned to Tanzania some three years from now after they have been analysed in America, “unlike our dinosaur skeletons that were taken to Germany but have not been returned. The dinosaurs were not brought back mainly following legal complications because Tanzania was under German colonial rule when they were discovered. The researcher explained that the discovery was proof that in the environment of those ancient times such creatures could survive, although that might be very difficult now.

Chris Brochu, a vertebrate palaeontologist at the University of Iowa was quoted as saying that he would not guarantee that the crocodiles in question killed ancient humans “only that they were certainly biting them”. Ancient hominid bones discovered by Mary and Louis Leakey in the same sediments bear distinct bite marks likely to have been inflicted by large crocodiles. Yet, most researchers have assumed that the gashes were delivered by the same species of crocodiles that prowls the banks of the Nile today.

This is not so claims Brochu, who re-analysed numerous incomplete fossils, the most recent of which was unearthed in 2007 by among others Jackson Njau of the Natural History Museum in Arusha. Though roughly the same size as the reptilian denizens of the Nile, the Olduvai crocodiles had thinner, more flared snouts and large horns more characteristic of Madagascan crocodiles that went extinct in the past few thousand years. “The discovery of C. anthropophagus points to far more diversity in African crocodiles in the past 2.5 million years than was thought,” argues Brochu. He says his team has not found many fossils belonging to C. anthropophagus, but none is complete, “so it’s impossible to determine its precise relationship to the modern Nile crocodiles. But, Brochu has little doubt that C. anthropophagus threatened the ancient hominids who called Olduvai Gorge home. According to the palaeontologists, larger crocodiles would have been capable of consuming hominids completely, leaving no trace.

TROUBLED RAILWAYS

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In January the Guardian reported that serious discussions were still underway between the government and the Indian investor-RITES – on the possibilities of amending some sections of the contract governing the operations of Tanzania Railways Limited (TRL). The government was also considering whether the contract between the two shareholders should continue or not. The government was still topping up workers’ salaries at a cost of about Shs 522 million monthly, these sums being loans to the company. The government expected that they would be repaid when the firm started operating efficiently.

TRL has been experiencing differences on policy with the Indian company and the workers have been on a number of strikes since the new management took over operations of the central railway line three years ago.

Also in January the Guardian published a strange story about the other main railway – the Tanzania Zambia Railways (TAZARA).
Extracts: ‘The Managing Director of TAZARA, who went missing since last November, has spoken from his hideout, saying that the tense situation in the company had left him with only one option – to leave the country. He said that his hasty departure was prompted by leaked information that the police were pursuing him to face some charges in court. He said he could not withstand ‘the heat’ bearing in mind that he had never been in court before, even to bail out someone. The charges he was facing included contempt of court. He feared the charges were economically motivated following stringent measures he had imposed after assuming office. He accused “some people” of ….cheating on the volume of cargo ferried; others siphoned diesel and lubricant from locomotives while others worked day and night to deny haulage to the firm, making connections with private lorry owners instead. He was also quoted as saying that the one year he had been in office was the time of rebuilding, including repairing locomotive engines and wagons and the infrastructure to reduce accidents that occurred frequently. “Unfortunately, after June 2009 the world economic meltdown hit TAZARA…There was very little traffic as copper from Zambia dropped from 15,000 tonnes to just 5,000 tonnes.’

The Guardian also reported that Infrastructure Development Minister Dr Shukuru Kawambwa had said that his office was aware of the disappearance of the MD, and that deliberations on the matter would be held at a joint meeting involving concerned ministers from Tanzania and Zambia. Kawambwa also said that the Chinese government was set to lend Tanzania and Zambia $ 39 million as part of new a strategy to bailout the jointly-owned railway line. The Chinese government was also going to send management and technical staff to support the existing management. In an editorial, the Guardian proposed that a major management, manpower and financial audit be conducted so as to bring to the fore all underlying issues and durable solutions recommended. Furthermore, the system of appointment of the Chief Executive should be reviewed.

NO TO TANZANIAN IVORY

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A new report exposed continued large-scale illegal ivory trading in Tanzania and Zambia on the eve of the opening of the Convention on International Trade in Endangered Species (CITES) meeting in Qatar in late March. However, the governments of the two countries proposed to CITES that they should be allowed to sell $15 million worth of tusks.

The report, ‘The Burgeoning Illegal Ivory Trade in Tanzania and Zambia’, by the ‘Environmental Investigation Agency’ (EIA), a non-profit group based in Washington, DC and London, quoted in This Day, said that undercover investigators had found evidence of a flourishing trade in illegal ivory in both countries. It said that Tanzania’s elephant population had declined by more than 30,000 elephants between 2006 and 2009, primarily from poaching to supply black-market ivory to Asia. This was said to be concentrated around the Selous Game Reserve, where 40% of the country’s elephants are found.

A seemingly innocent proposal by the government to sell 90 tonnes of its ivory stockpiles worth $15 million to provide much needed revenue came under severe criticism. There was strong opposition from the tourist business in Tanzania. Chairman of the Zanzibar Association of Tourism Investors (ZATI) Mohammed Simai said that the campaign would impede Tanzania’s efforts to promote tourism, including game viewing in prominent national reserves like Selous, Serengeti and Ngorongoro. He urged President Kikwete to intervene and stop the proposed sale and added that the $15 million was a drop in the sea compared to potential losses from tourism. Tanzania earned Shs 1.6 trillion in 2008 from 640,000 tourists accounting for some 17% of GDP. Zanzibar would lose heavily because 30% of foreigners who came to Zanzibar had been game viewing tourists on the mainland.

Next, there was a visit to Tanzania by a delegation from CITES to assess if the country deserved a stockpile trade window. The government argued that its elephant population was safe and on the rise.

However, at the CITES conference in Qatar, issues of poaching were high on the agenda and Tanzania’s proposal attracted opposition from East Africa Community partners Kenya and Rwanda, and angered several other western countries and conservation groups. Britain’s Environmental Secretary Hilary Benn declared that the UK would vote no. The London Times had declared that Tanzania had established itself as the leading country for the illegal slaughter and export of ivory. Up to 50 elephants were killed every month at Selous it wrote and the authorities were torching the carcasses as a cover up. Other countries that called for a 20-year included Mali, Benin, Chad, Ethiopia, Ghana, Guinea, Niger, Nigeria, Senegal, Togo, Liberia, Sierra Leone and the Government of Southern Sudan. Zambia was the only African country to support Tanzania.

Tanzania’s proposal was eventually rejected by CITES.

And in the Philippines
In the Philippines, a wildlife officer has been suspected of stealing at least part of 700 kilos of elephant tusks worth $2 million which had been smuggled into the country from Tanzania. According to the Director the country’s Protected Areas and Wildlife Bureau, the ivory – valued at $65,000 – had been part of a 4,000-kilo shipment of tusks impounded at Manila airport in July 2009. The seals on some of the boxes had been broken and some of the original tusks had been replaced by replicas made of PVC pipes covered with plaster. She went on: “This is really embarrassing because we should be among the proactive countries protecting such internationally-important species.

In a related development, 23 African countries told the European Union to support protection of the continent’s elephants and that, in return, they would help the EU to protect bluefin tuna. However, if the EU did not back their case, they threatened to oppose Europe’s proposal to ban trade in the giant fish. At the CITES meeting in March the proposed ban on fishing for blue tuna was overwhelmingly defeated after considerable lobbying by Japan which consumes large quantities.

WOMEN ACHIEVE

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Dr Anna Tibaijuka, Under Secretary General of the UN and Executive Director of UN Habitat, has been given the ‘Goteborg Award for Sustainable Development’ which is widely considered equivalent to the Nobel Prize for the environment. It is awarded by the City of Goteborg in Sweden. In accepting the award, which comes with a cash prize of $147,000, she spoke in Swedish and said that the money would be channnelled to the UN Habitat’s support for young people living in slums. This provoked mirth among the Tanzanian government delegation, who vehemently shook their heads in mock disappointment. “How dare she? We cannot come all the way to this cold country and not be rewarded even with a cup of tea” one of them joked loudly.

In Stockholm she launched her book ‘Building Prosperity: and Economic Development’.

And, in Tanzania, US Ambassador Alfonso Lenhardt has presented the 2010 ‘Tanzanian Woman of Courage Award’ to Ananilea Nkya, Executive Director of the Tanzania Media Women’s Association (TAMWA) for her efforts to promote equality, opportunity and justice for Tanzanian women and girls. The Ambassador stressed that education will enhance women’s participation in the country’s economic activities and free them from early marriages, pregnancy and HIV/Aids. “For a bird to fly straight and high, both wings must be equally strong and developed. Both men and women must fully possess social and political rights and have equal opportunity to go for higher education”, he said. He said Nkya was given the award due to her efforts in using the mass media to raise awareness, speak out on gender-based violence, train women journalists and help repeal laws that limit women’s rights. He said that Nkya had designed a media campaign against a Zanzibar law which made pregnancy out of wedlock a crime and managed to spearhead amendments to the Marriage Act which currently allows girls younger than 18 to be married. He said that Nkya trained women politicians in 2005 aiming to increase their numbers in politics. As a result there were 1, 500 women candidates compared to 200 in previous elections. He said that through TAMWA, the government passed the ‘Sexual Offences Special Provision Act of 1998’ which criminalized FGM and increased the punishment of rapists to 30 years in jail.

Nkya is the third recipient of the Tanzania Woman of Courage Award since the US Embassy initiated it. The other recipients are Helen Kijo-Bisimba, Executive Director of the ‘Legal and Human Rights Centre’ in 2008 and Anne Malecela, MP for Same East in 2009 – Guardian.

KILIMO KWANZA – INITIAL STEPS

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The first steps have been taken in President Kikwete’s ‘Kilimo Kwanza’ (Agriculture First) policy designed to inject fresh vigour into the agricultural industry.

Repossession of idle land
The government has initiated a countrywide move to revoke title deeds of idle land neglected by proprietors for more than twenty years. Some 115 plots totalling 177,000 hectares in Morogoro Region alone are to be repossessed.

According to the Daily News, 115 plots totalling 177,000 hectares have been identified in Morogoro Region alone and will soon be repossessed by the government. Funds are being allocated to facilitate surveys of other identified idle land ready for development in Manyara and Tanga Regions.

More engineers to be trained

Prime Minister Pinda test drives a tractor


The government has given the Arusha Technical College the job of training irrigation, agro mechanical and civil engineers to support the ‘Agriculture First’ drive.

Prime Minister, Mizengo Pinda said shortage of qualified irrigation engineers is holding back government efforts to boost agriculture. “We are facing a significant shortage of irrigation and related field engineers to serve in agriculture and irrigation schemes,” Pinda said.

The Guardian reported that the population of approaching 40 million people, 80 per cent of them farmers, was facing a shortage of over 250 irrigation engineers and 1,300 technicians in the irrigation field. Tanzania, with more than 44 million hectares of agricultural land, three of the largest 10 lakes in the world and a large network of rivers, uses less than one per cent of its arable land for Irrigation.

High quality cassava flour
Furthering the objectives of Kilimo Kwanza, a $4.5 million project funded by the Common Fund for Commodities, which will be implemented by the International Institute of Tropical Agriculture, is being launched. The aim is to raise the profile of cassava, in the form of high quality cassava flour, so as to make the crop a profitable and stainable source of income – The East African

TANZANIA IN THE INTERNATIONAL MEDIA

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Compiled by Donovan Mc Grath

An East African Federation: Big ambitions, big question-marks – The Economist 05.09.09
‘The idea of a United States of East Africa is less far-fetched than it was.’
Extract: ‘In 1967 [Uganda, Tanzania and Kenya] founded the East African Community (EAC) with a view to federation. Little progress was made; the EAC collapsed in 1977 … In 1999, however, the project was revived.’
‘Tanzania has usually been the one to put the brakes on the EAC, fearing it will be overrun with land speculators and better-educated Kenyans and Ugandans. But Tanzania’s president, Jakaya Kikwete, now says his people should stop moaning and prepare for a common market…’ Thank you Jill Bowden for this item – Editor.

Another kind of World Cup to kick off on the Serengeti – The East African (22-28 Feb 10)
‘A coincidence of football matches in South Africa and another kind of matches on the Serengeti plains is set to boost Tanzania’s tourism revenue from this year. The Tanzania Tourist Board acting managing director Amant Macha said the wildebeest bulls would be fighting for the most beautiful females in the Serengeti plains between May and June this year.
Mr Macha said that when football teams and fans from all over the world start to arrive in South Africa in June for the world cup battles, the stage will have also been set for animal fights beyond sex in the Serengeti National Park.’

BAE admits guilt over corrupt deals – The Guardian Weekly 12.02.10
Following 20 years of denial, BAE has agreed to pay penalties of almost $470m after the military company pleaded guilty to charges of false accounting and making misleading statements.
Extract: ‘… The Serious Fraud Office said … that some of the $47m penalty BAE was to hand over to the UK would be “an ex gratia payment for the benefit of the people of Tanzania”… BAE will not face international blacklisting from contracts, because it admitted false accounting, not bribery.’ Despite BAE’s guilty plea, there is the worry that no individual will be brought to account. Vince Cable, Deputy Leader of the Liberal Democrats, said: “… The British government was up to its neck in this whole business. Government ministers were almost certainly fully aware of what was happening.” Thank you Sister Lucia for this item – Editor.

Barrick Gold to spin off African business – Daily Telegraph Overseas Edition 24.02.10
The initial public offerings (IPOs) market has apparently come to a standstill in the current economic climate. However, a shot in the arm could come from the world’s largest gold miner, the Canadian-listed Barrick Gold. Gary White writes: The mining company ‘plans to list its Tanzanian assets as African Barrick Gold (ABG) on the London Stock Exchange. The new company will contain between 8pc to 10pc of Barrick assets, valuing the business at about $3.7bn (£2.4bn) [… making] it one of the biggest gold producers listed in London, and a potential new entrant in the FTSE 100.’
‘ABG also intends to seek a future listing on the Dar es Salaam Stock Exchange in Tanzania. Parent Barrick Gold made a recommended offer for Australian-listed Tusker Gold, which also operates in Tanzania… Proceeds from the IPO will go to the parent company, which plans to use them to fund development projects. Thank you John Sankey for this item – Editor.

Ground Work – African Decisions (Issue 1, Jan 10)
Here, Sean Christie’s article examines some of the obstacles regarding investment in the mining industry. The author begins his piece by posing the question: ‘How easy is it to invest in African mining? The Canada-based Fraser Institute’s Annual Survey of Mining Companies serves as ‘the most trusted source’ in order to arrive at a good understanding of Africa’s investment appeal.
Approximately 3,000 companies involved in exploration, development and other mining activities contribute to the yearly survey. The focus is on how public policy (i.e. regulation and taxation), political and security issues affect investment in exploration.
Of the 71 jurisdictions surveyed this year, 10 are African… [However,] the survey cannot … examine in any detail the causality behind the statistics.
Tanzania is among the four African countries chosen for Christie’s commentary due to its ability to ‘illustrate trends that have broad applicability as regards investment appeal throughout Africa.’
‘If you compare Tanzania’s eighth place in terms of pure mineral potential with a 48th place for its policy, it is obvious that, as with South Africa, investors have a serious problems with Tanzanian mining policy.
The major source of discontent has been a raft of proposed changes to the way in which mining companies are taxed. The history of tax regulation is echoed all through the region – in Zambia, DRC, and as far away as Sierra Leone…
‘In Tanzania, the World Bank’s interventions legalised the repatriation of profits and led to the passing of laws that reduced tax rates and custom duties on certain imports – laws that still applied (to the fury of Tanzanian civil society groups) during the millennial commodities boom…’

Costs now the main issue in ivory debate – The East African (22-28 Feb 10)
‘The hard choice: Does it make sense for the country to continue spending $75,000 annually to secure its stockpile?’ This is the dilemma faced by the Tanzanian government over its stockpile of over 12,000 tusks.
Extract: ‘Tanzania’s stockpile of 12,131 tusks – weighing 89,848.74 kilogrammes is estimated to be worth $12 million in the Asian markets … ‘Protecting the stockpile has raised the cost to $1.5 million over the last 21 years since trade in ivory was banned under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Cites).
‘Tanzania and Zambia have asked for a one-off permission to sell their stockpiles in the international markets. However, if Kenya and other East African Community countries opposed to the application succeed in blocking the request, President Kikwete’s government fears it will not only be stuck with the possibility of protecting the ivory, but besides, the country will have to spend an additional $2 million to build two strong rooms to store it.’
Conservationists are worried that allowing limited sales on occasions could create a market demand for ivory, enough to trigger a new wave of poaching. The effects on tourism in the region is another concern (see a related EA article in this section of TA).

Makutano: A meeting point for artists – The East African (7-13 Dec 09)
In a review of ‘…Makutano, meaning “meeting point” in Kiswahili, an annual event bringing Tanzanian artists and artisans the paper wrote: “This year’s fair was held at the Diamond Jubilee Hall in Dar es Salaam …2009’s participants included: ‘Wonder Welders’ … whacky recycled art creations … made by people with disabilities; Made in Zanzibar’ … a group of artists … promoting local, fair trade Zanzibar-made crafts, clothes and accessories’, amongst others.

Military air traffic control – for a country with no air force – The Guardian Weekly 12.02.10
Extract: ‘… The World Bank and the International Civil Aviation Organisation judged that Tanzania’s purchase was unnecessary and overpriced. ‘But the $44m deal looked even worse when the UK’s Serious Fraud Office found that a third of the contract’s price had been diverted into secret offshore bank accounts. Claire] Short, Britain’s Minister of International Development at the time, who later resigned from the government, said …: “Every way you look at it, it the deal was outrageous and disgraceful … Tanzania didn’t need a new military air traffic control, it was out-of-date technology, they didn’t have any military aircraft – they needed a civilian air traffic control system and there was a modern, much cheaper one. Everyone talks about good governance in Africa as though it was an African problem, and often the roots of the ‘badness’ is companies in Europe”.’ Thank you Sister Lucia for this item – Editor.

New tourism law puts Tanzania on the spot over one-off ivory sale – The East African (22-28.02.10)
Extract: ‘The East African parliament has passed a new law that opens space for the region to debate freely whether Tanzania should go ahead with the controversial sale of its ivory stockpile.
‘The EAC Tourism and Wildlife Management Bill was passed into law at a session of the East African Legislative Assembly held in Kampala, Uganda from February 8-19. It awaits assent by the Heads of State of the five partner states.
‘The legislation will establish a Commission … who will be responsible for the overall supervision, coordination and management of the tourism and wildlife industries in the region.
‘Kenya and Rwanda accuse Tanzania of betraying the East African Community’s spirit of consultation by pushing for a one-off sale of its 90 tonnes of ivory …
‘Top of the Commission’s agenda is to review Tanzania’s reluctance to call off the sale. “The Commission will advise us on whether the sale of ivory is beneficial to the region and designate hunting areas as well,” said Kenya’s representative to the EALA..

Oops … Auntie’s bloomers are laid bare by revealing expense claims – The Times 13.11.09
‘When the DJ Chris Moyles decided that he wanted to climb Mount Kilimanjaro for Comic Relief, Andy Parfitt, Radio 1’s controller, was only too eager to help…’
Extract continues: ‘However, needing warm mountain clothing for the trip, the Radio 1 boss chose to bill the licence-fee payer for the cost. ‘His expenses bills … reveal two claims – £346.85 for Kilimanjaro “essentials” and a further £194.98 for “specialist clothing”. These were necessary, the BBC said, because of “the conditions Andy would be facing”.’ Thank you John Sankey for this item – Editor.

How solar power shines a light into the heart of darkest Africa – The Times 27.11.90
This article, which forms part of the newspaper’s Christmas Charity Appeal, comments on how solar power is transforming lives in Tanzania.
Extract: ‘… A hidden tragedy … unfolding across Africa every day. A tragedy that is claiming more lives each year than unclean water. It is, in fact, the greatest killer of all … Respiratory diseases caused by toxic smoke kills 1.5 million women and children every year… The reason is simple: with less than 2% of the rural population of Africa having access to electricity, numerous millions breathe in poisonous fumes every day. … Solar power is a solution to Africa’s energy problems … Tanzania … benefits from some of the highest levels of sun exposure in the world, making solar ideal as a main source of electricity. It is also green and durable… To buy kerosene and single-use batteries costs a small fortune for villagers living on the edge of subsistence. The power of the sun, on the other hand, is free [apart from the panel and kit, which, in some cases, can pay for itself in a matter of weeks].’ Solar Aid is the UK-based charity behind solar power in Africa.

Tanzania Special New African style
January 2010’s edition of the New African magazine ran a ‘Tanzania Special’ issuing a splendid image of the country. The following is an extract from three of the articles:
We begin with ‘Welcome to Tanzania’:the writer Alan Barnard, states: ‘They say there are seven wonders in the world but there are more in Tanzania…’ The article continues: ‘As a tourist destination, mainland Tanzania can be considered the world’s largest natural game park… a green jewel shining in a sea of blue.’ Throughout the article, readers are treated to a geographical and historical tour around the country starting with Mbeya in the south and Arusha in the north. Other areas include Lake Tanganyika, the Rift Valley, Lake Victoria, Mwanza, the Serengeti, Ngorongoro Crater, Tanga (the original capital) and Dodoma (present day political capital). The article ends by saying: ‘There is no place like Tanzania. It represents something we all look for on this war-torn planet: One country. One continent. One world. Welcome to that world. Welcome to Tanzania. Karibu sana.’
The next part of the special looks at Tanzania as ‘The Land of Opportunity’, also written by Alan Barnard. According to this report, ‘The government’s Vision 2020 programme, meant to move Tanzania into middle-income status by 2020, is on course; but the real success will depend on how much the economy attracts investors, and sustains growth.’
Extract continues: ‘Tanzania has always been the home of idealism … There is still a loyalty to the socialist roots that inspired the nation … under the late President Julius Nyerere … Agriculture remains the key to Tanzania’s independence … the country’s chief asset is the land itself …Tourism is … an important source of revenue … but the absence of a homegrown industry is a cause for concern.’
The report continues by saying: ‘… The opportunity for growth is mind-boggling. Tanzania is often described as a sleeping giant … one that welcomes investors and makes it easy for them to do whatever they want to do… Here, China has taken the lead. By investing directly in Tanzanian infrastructure, China has already begun to change the landscape. The new football stadium in Dar es Salaam aptly crowns a significant partnership between China and Tanzania …’And investor’s number one champion is the president himself, Jakaya Kikwete.’
‘Sending Money Made Simple’ is the third in NA’s Tanzania Special. According to this report, ‘Vodacom Tanzania has revolutionised money transfers in the country, thanks to an innovative service called M-PESA that enables money to be sent via mobile phones.’…. ‘Prior to the introduction of Vodafone M-PESA, money transfer services in Tanzania were mainly offered through personal contact, courier services and financial institutions…’Now businessmen are able to make payments quicker as well as anywhere, day or night… With M-Pesa, one can spend, send and receive, according to Dietlof Mare, the Vodacom Tanzania managing director. “With an M-Pesa account, one can transfer money to anyone with a mobile phone number. Apart from that, people are also able to pay their utility bills, cable television subscriptions, repay loans, pay tuition fees … [I]t is difficult to build banks in every village but with M-PESA we have been able to penetrate regions not reachable by many”.’

‘Tourism is a curse to us’ – The Observer Magazine 06.09.09
‘The Masai have been herding cattle across the great plains of Tanzania for generations, their nomadic lifestyle helping to preserve the wildlife of East Africa. Now, they are being forcibly evicted so that tour operators can turn their homelands into vast “nature refuges” for wealthy holiday makers’, writes Alex Renton.
Extract: “Arabiya”, as it is called by the locals, is ‘a safari camp complete with mansion, a runway capable of taking large jets, a fleet of off-road vehicles and a branch of the UAE phone network. This is the field headquarters of Ortelo Business Corporation (OBC) … set up in 1993 by a UAE defence minister close to the Dubai royal family…This sweep of low hills and savannah is just one of many tracts of land that the dollar-hungry Tanzanian government has pawned to foreign investors…In Tanzania, the process of removing pastoralists from the plains started in 1959, when the British colonial government made the great grass sea of the Serengeti – in Masai the name means endless plain – a human-free wildlife reserve…’Then in 1961, a Tanzanian government took over. More national parks were created, and evictions followed. In 1973 the government of Julius Nyerere went back on the deal the Masai had done with the British, and excluded them from the crater of Ngorongoro…’ Thank you Roy Galbraith for this item – Editor.

East Africa’s first astronaut – New African (March 2010)
‘Ashish Thakkar, an East African-born businessman, cannot wait to board SpaceShipTwo, the Virgin Galactic vessel that will soon be transporting him and other tourists into space on the world’s first commercial passenger spaceship …’

Extract continues: ‘He has lived in Uganda most of his life. His father and grandmother were born in Uganda, his mother was born in Mwanza, Tanzania, but the family lived in Kenya where Thakkar partly went to school. The family also lived in Rwanda and went through the genocide and were refugees for a few weeks.

‘… As a representative of three East African countries – Uganda, Kenya and Tanzania – he will engage in a round of meetings with the presidents of the three countries before the flight. He met President Jakaya Kikwete of Tanzania on 16 October 2009, and is due to meet Presidents Yoweri Museveni of Uganda and Moi Kibaki of Kenya.’

Hunted down: Maasai evicted so foreigners might play – New Internationalist (No 428, Dec 09)
This current issue features widely in international media (see ‘Tourism is a curse’ in this edition of TA, ‘Maasai evicted and imprisoned to make way for safari hunting concession’ in TA (No 95) – Editor.
Extract: ‘In July [2009] the Tanzanian Field Police violently and unlawfully evicted 25,150 people from eight villages in Ngorongoro District that are traditionally used for dry-season grazing by pastoralists. Homesteads were burned, women raped, people were beaten, shot at and imprisoned…
‘The eviction was carried out in order to clear the area for hunting in the Loliondo Game Controlled Area, which borders the Serengeti National Park and is famous for its wildlife breeding grounds. The area is controlled by a company from the United Arab Emirates called the Ortello Business Corporation (OBC).
‘The villagers have responded by demanding their rights. Fifty women marched on Dar es Salaam … but President Jakaya Kikwete refused to see them…
‘This is not the only land dispute that Manyara’s village is contesting. A US company, Thomson Safari [i.e. Thomson Family Adventures], bought 4,000 hectares of prime land under disputed circumstances in 2006, denying the Maasai grazing and water rights on land they have been dependent upon for decades…
‘A new Wildlife Act, which is waiting to be signed by the President, states that Game Controlled Areas cannot be situated where there are villages. In other words, villages must be removed from the area before the Act comes operational…’ Thank you Jerry Jones and Sister Lucia CSP for this item – Editor.

Katrina Manson in Dar es Salaam – Spectator 19.12.09
In the City Life section of the Spectator magazine is a critique of Tanzania’s market economics.
Extract: ‘Two … ferries … On one, a tradesman clutches a bag of tomatoes, heading south to the villages along the coast. On the other, a tradesman clutches a bag of tomatoes, heading north to the throng of the town…
‘It might be a haven of peace – the translation of Dar es Salaam, Tanzania’s commercial capital – but the duplication and needless extra expense is thanks to the strange social reality that no one wants to buy from their neighbour. “There’s no trust in this country,” a senior diplomat tells [the author] over lunch. “And trust is how business gets done.”
‘… [S]ince liberalisation, Tanzania seems to have plumped for hair of the dog in its effort to mop up its socialist hangover. The private sector operator of the container port, for example, is performing so badly that the port authority is stepping in … The country is slipping down the scale of “good place” indices, both for corruption and the difficulty in doing business. Businessmen, miners and diplomats tell me foreign investment is a synonym for stealing, and foreigners are seen as parasites …
‘It’s true that foreigners have done little to ingratiate themselves here … Currency traders moan that they are waiting for this week’s fresh supply of NGO dollars to pump up the shilling. And the donors – cosy in their modern idyll in the north of the city, home to bars named George and Dragon and O’Willies Irish Whiskey Tavern, and the waiting list for the yacht club – make such dependence all too easy.’

Massive strides towards education and poverty reduction – The Global Edition of the New York Times 11.02.10
‘The Tanzanian government’s Mkukuta development strategy is increasing household incomes, educating young people and protecting the health of all citizens.’
Extract: ‘After reaching several United Nations Millennium Development Goals and completing an enhanced Highly Indebted Poor Country’s Initiative (HIPCI) ahead of schedule, Tanzania has cleared the path for the next phase of its Mkukuta Strategy…
‘Education [is] a priority in Tanzania since independence … but a shortage of teachers and staff remains a stumbling block. The government says this is an area in which Tanzania still requires foreign assistance…
‘With regards to human rights, Tanzania has attracted international censure for the terrible treatment and killing of its albinos … [Prime Minister] Pinda blames rural witch doctors for encouraging the murder of albinos and perpetuating the myth that certain body parts confer luck and healing powers…
‘President Kikwete [has] charged the MP Al-Shymaa Kway-Geer, a former airline clerk with albinism, with improving the lot of Tanzania’s albinos. Prime Minister Pinda has adopted three albino children…
“The government is doing everything possible to eradicate the killing of albino citizens, ” says Pinda. “We have to come up with solutions. Education is one of them …”‘

Wealth of regional talent on display at Sauti za Busara – The East African (8-14 Feb 10)
Extract: ‘The seventh edition of Sauti za Busara international music festival … held in Zanzibar from February 11-14 …
‘The fete, which touts itself as the world’s most friendly festival, will feature 40 performers from the region and beyond.
‘… The festival will definitely be a baptism of fire for [Juliana] Kanyomozi [Uganda] – the only female artiste to have won Artiste of the Year (2008) from the now defunct Pam Awards – since organisers require that artistes perform live and the challenge for her will be to make the transition from singing layback to live.
‘… She has gone on to enjoy cross-border appeal by adding Kiswahili songs to her repertoire. The songs Usiende Mbali featuring Tanzanian youthful crooner Bushoke and her recent collaboration with Burundian Afro pop musician Kidum on Haturudi Nyuma – which is enjoying massive radio airplay on regional FM radio stations – have enhanced her regional cross-border appeal.
‘Scheduled to perform at midnight on February 12 is Kiswahili singer Nyota Ndogo. Celebrated both locally and internationally …’

Savings Drive – The East African (22-31 Jan 10)
Extract: ‘Tanzania will shift to locally produced natural gas to run state-owned vehicles instead of petrol and diesel.
‘The move, which is likely to face stiff opposition from oil importers will save the government more than $15.3 million every year used to fuel over 8,000 vehicles.
‘The Tanzania Petroleum Development Corporation has prepared a master plan for the effective implementation of the project.
‘The master plan will make it mandatory for government motor vehicles to be configured so they can use natural gas.
‘Yona Killaghane, managing director of TPDC, told The East African that 30,000 households in Dar es Salaam will also benefit from the natural gas project…
‘According to TPDC, the country saved $3.7 billion between July 204 and October last year through the use of natural gas.
‘The principle research officer at TPDC, Joyce Kisamo, said the benefits of using natural gas are immense. “Even the environment and forests are targeted in the master plan, as less carbon dioxide and carbon monoxide will be released into the atmosphere”…’

Tanzania has a plan – The Global Edition of the New York Times 11.02.10
Extract: ‘Tanzania is … a thriving, democratic, stable country with a long-term vision for development.
‘Tanzania’s economy boasts 7% growth over the past three years and an average of 5% over the past decade. Both the International Monetary Fund (IMF) and the World Bank predicted that it would grow an additional 4.7% in 2009 despite the global recession, compared to sub-Saharan Africa’s predicted average of 1.9%…
‘In addition to completing the IMF and World Bank’s Dept Initiative for Heavily Indebted Poor Countries (HIPC) ahead of schedule, Tanzania has embarked on ambitious projects. The Mkukuta Project aims to establish Tanzania as a middle-income nation by 2025. The Mini Tiger Plan 2020 aims to improve economic indicators, such as exports, by at least 25% by 2020.
‘Tanzania has met several of the UN’s Millennium Development Goal targets and consistently ranks in its list of “Top Ten Investment Destinations in Africa”. It topped all African nations in attracting €275 million ($393 million) in 2008.’