ONGOING CORRUPTION CASES

The radar case and WikiLeaks
The case related to the purchase by Tanzania of an air traffic control system (RADAR) from Britain’s BAE Systems in 2001 for £28million reached apparent finality in London in December. After an unexpected reversal by the High Court in London of a previously agreed plea bargain arrangement under which BAE would compensate Tanzania, new information came from the publication by the London Guardian of dispatches from the American Ambassador in Dar es Salaam revealed by WikiLeaks. In its comments the Guardian wrote: ‘Every individual involved in the BAE scandal in Britain and Tanzania has escaped prosecution. BAE had agreed with the UK Serious Fraud Office (SFO) to pay £30m in corporate reparations and fines, provided the word “corruption” did not appear on the indictment. The Head of Tanzania’s Anti Corruption Bureau had alleged that his life might be in danger on this matter and that senior politicians in his country were ‘untouchable’….

In what appeared to be the end of the matter, as far as Britain is concerned, the Southwark Crown Court in London ruled that BAE would pay a fine of £500,000 for ‘failing to keep proper accounting records,’ £225,000 in legal costs and the remainder of the penalty of £30 million to the people of Tanzania as restitution. The court criticised BAE for concealing the purpose of nearly £8 million in payments made to Shailesh Vithlani, its marketing advisor in Tanzania at the time. (Thank you Elsbeth Court and John Sankey for helping on this story – Editor).

The Richmond Saga
On November 15 the International Chamber of Commerce (ICC) ordered the Tanzania Electricity Supply Company (Tanesco) to pay Dowans Holdings SA and Dowans Tanzania Limited a sum of Shs106 billion for breach of a power contract. The two companies inherited the project from the controversial Richmond Development Company of the USA’s Shs152 million-a-day emergence power supply contract, which was also the cause of the resignation of three ministers including the Prime Minister in February 2008. The two parties in the case were also instructed to pay fees and expenses of the arbitrators and the ICC administrative expenses amounting to $750,000 equally. Tanesco had moved to the High Court to restrain Dowans from disposing of its turbines. Dowans wanted to sell the turbines after the government had terminated power production and purchase agreements between Tanesco and Dowans on grounds of underperformance. The plan to sell the turbines had been a source of public debate throughout 2010 with some people proposing that the government should nationalise the plants after the company had allegedly failed to honour its agreement. There were varying reactions in Tanzania on whether the country should pay such a large sum to Dowans. Several leaders said that Tanzania should not pay.

Before this court decision the Government had increased the supply of heavy fuel to Dowan’s firm – Independent Power Tanzania Ltd (IPTL) – enabling it to pump more electricity into the national grid to ease the ongoing power rationing – Majira.

The ‘Twin Towers’ case
In September the Bank of Tanzania’s former Director Amatus Liyumba was sentenced by the Kisutu Resident Magistrate’s Court to two years in jail after he was found guilty of abuse of office during the construction of the Bank of Tanzania’s ‘Twin Towers’ project. His lawyers immediately filed an appeal. The change of scope of the work being done had been under the supervision of the Bank’s former Governor the late Dr Daudi Balali, who was in charge, they claimed. They further submitted that the court erred when it dismissed the appellant’s defence and his witness, former BoT secretary Bosco Kimela, on grounds that they had cooked their testimony because they were locked in the same remand prison – Guardian.

OCTOBER 2010 – ELECTION GUIDE

As this issue of Tanzanian Affairs goes to press the country is gripped by election fever. At stake in the elections scheduled for October 31 2010 are the presidency and vice-presidency of the United Republic, the presidency of Zanzibar, hundreds of seats in the National Assembly and the Zanzibar House of Representatives, and thousands of seats for local councillors.

It is hoped that next issue of Tanzanian Affairs will contain an account of the final stages of the election campaigns and a summary of the results.

Changes
Since the last elections in 2005 there have been a number of changes in organisation and procedures in the ruling Chama cha Mapinduzi (CCM) party aimed a making them more open and democratic. For example, the Party, which has ruled the country for almost 49 years, and has always ensured a tight control over selection of party election candidates by its Central and National Executive Committees (CC and NEC), has relaxed its grip this time. Candidates voted in by the people at primary elections have been approved by the party hierarchy in most cases. However, the earlier tight control, with its nationwide network of party cells and its quite remarkable – almost unique – skill in squelching any individual or group wanting to deviate from the party line, has given Tanzania years of unity and peace which must be the envy of troubled neighbouring countries.

However, with the passage of time, people are beginning to reveal their discontent with the status quo and are beginning to protest more vigorously than they have before so that some election meetings this time had to be cancelled midway and candidates have been verbally attacked on a far greater scale than before. This has made for very lively election meetings.

Efforts have been made also to reduce the rampant corruption evident in elections in the past. It has become a tradition for candidates, more numerous than ever this time, desperate to retain or gain power, to distribute money or other bribes to voters. This time however they found officers of the Prevention and Combating of Corruption Bureau (PCCB) at most of the primary election centres. Some were shocked to find themselves being arrested as they tried secretly to hand out bribes to voters.

THE MAIN CANDIDATES

THE UNITED REPUBLIC – presidential candidates:
CCM – President Jakaya Kikwete for a second term.
– For Vice President – Dr Ghalib Bilal.
CHADEMA – Dr Wilbroad Slaa.
– For Vice President – Saidi Mzee Saidi.
CUF – Professor Ibrahim Lipumba.
– For Vice-President – Juma Duni Haji.
There are a number of candidates from smaller parties also running.

ZANZIBAR – presidential candidates

CCM – Presidency: Dr Ali Mohammed Shein.
CUF – Presidency: Seif Shariff Hamad.
Candidates from seven parties qualified for the Isles’ presidency and most are likely to stand in the election. They are the representatives of CUF, CCM, NCCR, TADEA, NRA, AFP and Jahazi Asilia.

Dividing power

An example of the skill with which the CCM party hierarchy controlled and distributed power amongst the top candidates in the elections was seen in the selection for the top positions – the presidency and vice-presidency of the United Republic (one of whom must come from the Isles) and the presidency of Zanzibar.

For the Tanzanian presidential candidate only two candidates submitted their names and one subsequently withdrew. The party then chose President Kikwete for a second term, virtually unanimously.

Dr Ghalib Bilal (right) greets CCM supporters at the start of the campaign

For the two top posts in Zanzibar it was more competitive as eight leaders submitted their names. Among them were Chief Minister Shamsi Nahodha, former Chief Minister Dr Ghalib Bilal, Ambassador Ally Karume and Minister Ally Juma Shamhuna. After much speculation in the press, the final decision of the party’s NEC came as a surprise to many. It was important that Pembans, who normally vote overwhelmingly against the CCM, should be well represented, so the current Vice-President of Tanzania, Dr Ali Mohamed Shein, a Pemban, got the nomination for the presidency of Zanzibar. The Swahili media gave the impression that he was chosen because he has been working well with President Kikwete for the last five years and would be a ‘safe pair of hands’ in any future disputes between the mainland and the Isles.

It was also important for prominent political leader Dr Ghalib Bilal, who had tried for the presidency before, to be given a top job. He therefore became the candidate for the vice-presidency of Tanzania. The choice of Dr Bilal was politically astute as former Zanzibar President Salmin Amour, who retains much influence in the Isles, was said to prefer him. It ensured that he and his many followers would remain loyal to the central government.

The Zanzibar referendum

This Zanzibar election will be different from the previous three, the results of which were widely questioned, as, in a referendum held just before the election campaigns began, the people of Zanzibar voted in favour of an agreement between the two main parties under which, whatever the result, the next government would be a coalition.

In the referendum all 18 constituencies in Pemba voted ‘yes’ but in Unguja 8 out of 32 constituencies voted ‘no.’ In total 188,705 voted in favour of the proposal, while 95,613 rejected it. Zanzibar Electoral Commission (ZEC) Chairman Khatib Mwinyichande announced the results at Bwawani centre to cheers of “Ndiyo! Ndiyo! Ndiyo!” (Yes! Yes! Yes!) from a big crowd that had waited for the outcome for several hours.

In addition to the discussions on the referendum the Zanzibar House of Assembly debated a constitutional amendment to give Zanzibar the status of a state which was contested initially because it was thought to be a violation of the Constitution of the United Republic.

The amendment read: ‘Zanzibar is a state whose boundaries include the islands of Unguja and Pemba, formerly known as the People’s Republic of Zanzibar.’ All the 75 MP’s from both CCM and CUF voted for this amendment. This cleared the way for the Isles to have a government of national unity to end the long standing political antagonism between the two parties.

A power-sharing government will be formed after the October elections, and will include the President from the wining party, a First-Vice President from the second-placed party and a Second Vice-President from the wining party. The Second-Vice President will be the leader of government business in the House of Representatives. The cabinet will comprise ministers from all political parties depending on the number of seats their party wins in the elections. The post of Chief Minister is to be abolished in the new set-up – Guardian

The opposition fails again

The 18 opposition parties have once again failed to take advantage of an increasing pressure from voters for change. Instead they have devoted a large part of their energy and resources to fighting each other instead of combining to fight against the monolithic ruling party.

Of the opposition parties only two are of real significance – The Chama cha Maendeleo (CHADEMA) because of its growing influence on the mainland and the Civic United Front (CUF) which, in previous elections in Zanzibar, has run neck and neck with the ruling CCM party.

Although CHADEMA agreed not to oppose CUF in the elections for the presidency of Zanzibar there was little or no sign of reciprocity by CUF on the mainland.

The policies

Traditionally, Tanzanian elections are based largely on the character of the individual rather than on party policy. But examination of the early speeches in the campaign gave an indication of some policy differences.

PRESIDENT KIKWETE AND CCM

Readers of Tanzanian Affairs will be familiar with the major policies of the ruling party and these are unlikely to change in the future. They include preservation of law and order including protection of the Albinos, encouragement of foreign investment, pursuit of those alleged to be involved in corruption, continued expenditure on social services and improvements in health and education.

The current president began his campaign by addressing five rallies a day, using two helicopters. His speeches were carefully adjusted for each audience and the promises for the future were numerous. Less frequent were explanations on how these promises would be paid for. – Habari Leo.

DR SLAA AND CHADEMA

CHADEMA chairman Freeman Mbowe (left) hands the presidential candidate forms to Dr Wilbroad Slaa (centre) at a rally in Karatu. Right is Prof Mwesiga Baregu, chairman of the campaign committee (source Yahya Charahani).

Dr Wilbroad Slaa has 15 years of experience as CHADEMA MP for Karatu. He became well known for putting out a ‘list of shame’ in 2007 naming allegedly corrupt ministers and key party officials, which prompted a series of legal threats against him by those accused. Despite vows that they would sue him for defamation, none of them went to court and the ‘list of shame’ was deemed accurate, earning Dr Slaa credibility as an anti-graft crusader in a country where corruption is said to eat up a third of the nation’s annual $9.0 billion budget.

Dr Slaa told thousands of chanting CHADEMA supporters at the launch of his party’s campaign that, if elected, he would, during his first 100 days in power, mainly focus on restoring accountability, integrity and trust within the government. He said his administration would not tolerate corruption, embezzlement of public funds and misuse of the country’s natural resources. Dr Slaa said Tanzania was poor and underdeveloped largely due to poor leadership and weak policies and the plunder of natural resources such as minerals and wildlife. “Under my leadership, the issue of corruption will be history…we will take tough measures against corrupt leaders…. We will not tolerate the plunder of our natural resources by the so-called foreign investors, who instead of revamping privatised entities turn them into mere godowns,” he said. He went on to say that implementation of the 2010 CHADEMA manifesto, which has been dubbed “Hatudanganyiki” (We will not be cheated), was the surest way to deal with these shortcomings.

His manifesto focuses on ensuring quality social services, such as education, water and health for all Tanzanians. His administration would offer free education from Standard One to Form Six and he would revamp agriculture, establish a robust industrial base, create better paying jobs, enhance security and develop sports and culture. Again, it was difficult to detect how these would be paid for.

He said that that government expenditure was excessive and disproportionate (President Kikwete had squandered Shs 23 billion on refurbishing State House). He promised to start by trimming his own salary if elected. Payments of allowances and salaries would have to be cut back by 20% starting with the President and regional commissioners.

Parliamentary and senior officials’ salaries would be slashed by 15%. Slaa pledged to expand the tax base while doing away with the rampant tax exemptions. He pledged to ban official posh cars, and reform the land law. He promised to remove taxes on construction materials to enable Tanzanians in rural and urban areas to build decent houses – Majira.

Whether by coincidence or not, the CCM party has nominated a person known as Willbard Slaa to vie for Dr Wilbroad Slaa’s parliamentary constituency, Karatu, in the Arusha region. CHADEMA fears that this may confuse some voters who in the past 15 years have been used to the name ‘Slaa’ as their MP.

Postscript: It is said that Dr Slaa did not want to take on the virtually impossible task of trying to unseat President Kikwete because it would mean that he would lose his safe parliamentary seat. The Swahili press has been alleging that, in agreeing to be persuaded by his Chairman, Freeman Mbowe, who wanted to stand for Parliament rather than try for the presidency, Slaa insisted that CHADEMA should pay him funds equivalent to what he would have earned as an MP over five years.

PROFESSOR LIPUMBA AND CUF

Professor Lipumba

Professor Ibrahim Lipumba, who has attempted three times unsuccessfully to become the country’s president, has spent many years as a lecturer in economics at the University of Dar es Salaam.

He said the country was at a crossroads and needed new leadership. Shs 11 trillion had disappeared since President Kikwete entered office in 2005. “This is equivalent to the total government budget this year….When he took power he promised to deal with corruption but what happened had been delusion and deception. The real culprits have gone free while those taken to court were facing diluted charges which eventually might be dropped.” He cited examples of the soaring cost of living and presented his elections manifesto, promising a new constitution and a government of national unity. He also challenged Kikwete to have a live debate so that people could decide how to vote. The President refused. Significantly, to put fears at rest, he said that he would strengthen the Union between Zanzibar and the mainland – Mwananchi.

THE Civic United Front (CUF) has nominated 120 candidates from the Mainland and 50 from the Isles to vie for Union parliamentary seats. It has also nominated 50 others from the Isles to contest seats in the Zanzibar House of Representatives.

CUF National Chairman Lipumba said that his party had invited CCM members who lost in the election primaries wishing to join CUF but added that there would be no automatic nominations for various leadership positions in the party.

He claimed that he cherished the idea of an alliance among the opposition parties, saying it was the best approach to challenge the ruling party more strongly, but insisted that he (Prof Lipumba) was the best candidate for the union president with a vision for change. However, he wished Dr Wilbroad Slaa all the best in his bid for the presidency.


Several ministers and over 70 former MP’s lose

MP’s unsuccessful in the primaries included Minister for East African Affairs Dr Deodorus Kamala (Nkenge), Deputy Minister for Fisheries and Livestock Development James Wanyancha , Deputy Minister for Health and Social Welfare Dr Aisha Kigoda, Deputy Minister for Education and Vocational Training Mwantumu Mahiza, Deputy Minister for Natural Resources and Tourism Shamsa Mwangunga and Deputy Minister for Information, Culture and Sports Joel Bendera (Korogwe Urban). Former Planning Minister Dr Juma Ngasongwa (Ulanga West) also lost.

Other prominent MP’s who lost included Joseph Mungai (Mufindi North), Dr Ibrahim Msabaha (Kibaha Rural) Prof Philemon Sarungi (Rorya), John Shibuda (Maswa), Felix Mrema ( Arusha Urban), William Shelukindo (Bumbuli), – Guardian on Sunday.

Some ten CCM MP’s said to have ‘ganged up’ against prominent CHADEMA MP Zitto Kabwe (Kigoma South) and caused his suspension from parliament in 2007, have been defeated in the CCM primaries. They spoke vehemently against a private motion that was tabled by Kabwe on an issue at Buzwagi gold mine and demanded that he be punished. Subsequently, Kabwe was suspended but not before he cursed them, predicting that they would not be returned in 2010. Kabwe’s prophesy seems to have been fulfilled and now he has the last laugh – Tanzania Daima.

Four ministers returned unopposed

Four cabinet ministers, including Prime Minister Mizengo Pinda, the Foreign Affairs and International Cooperation Minister, the Minister for Water Prof. Mark Mwandosya and Ms Celina Kombani, Minister of State in the Prime Minister’s Office, have been returned to parliament unopposed. Altogether CCM is starting off the elections with a lead of 13 unopposed MPs. Opposition parties have protested in some cases – Habari Leo.

A few of the hundreds of election ‘incidents’

The PCCB held a CHADEMA candidate over an alleged Euro 1,000 bribe in Musoma. Again, there were many similar cases – Nipashe.

CCM Secretary General Yusuf Makamba said that CHADEMA’s presidential candidate Wilbroad Slaa could not be trusted to respect the presidential oath of office while he failed to stand by the oath he took as a priest. Makamba said: “He took the oath of obedience and chastity but he broke it. He got married and then divorced his wife and now he goes around introducing his fiancée at rallies. How can he be trusted to run the country?” – Habari Leo.

CCM (as also the Chief Justice) condemned CHADEMA for bringing up at an election rally the case of the Shs 133 billion embezzlement from the External Payment Arrears (EPA) account in the Bank of Tanzania (BoT). Kikwete’s campaign manager said that CCM was not responsible but certain individuals were. “The matter was sub-judice and so it should not have been raised at the rally” he said – Mwananchi

President Kikwete greets crowds in Mbeya. Photo Freddy Maro

In Tunduma, Presidential candidate Jakaya Kikwete had a difficult time while addressing a rally when the people indicated that they would vote for him but not vote for his CCM candidate as MP. After speaking for 15 minutes Kikwete had to cut short his speech and even the party’s musical troupe (TOT) could not calm the noisy crowd and had to stop playing. Other similar incidents have occurred at other places – Majira

CUF suffered a blow in its one time stronghold in the Lake Zone – Bukoba Urban Constituency – when its local leader and former CUF MP Lwakatare defected to CHADEMA in 2008. CUF admitted that they were facing difficulties due to what they described as foul play by CHADEMA youths and leaders. “These leaders are doing all they can to tarnish CUF’s image and are provoking us to react negatively” said a spokesman. The ‘Daily News’ reported the flags of CHADEMA flying near CUF’s flags in several places and at one CUF branch, CHADEMA placards were placed on the wall of a house flying CUF’s flag. A CHADEMA spokesman said: “Akili ni nywele, kila mtu ana zake” loosely meaning everyone has their own way of doing things.

CUF speakers have pointed out that Tanzania was in the bottom ten percent of the world’s economies in terms of per capita income, with an estimated Gross Domestic Product of $22.1 billion or $550 per capita.

John Malecela

The most spectacular casualty in the CCM primaries was veteran CCM statesman and former Prime Minister and High Commissioner in London, John Malecela, who was defeated at Mtera by a young and upcoming politician called Livingstone Lusinde. The NEC sustained Lusinde’s victory after former President Ali Hassan Mwinyi was reported to have asked NEC members to uphold the primary results.

CCM candidates queried

Several CCM candidates are facing objections on grounds of nationality or forgery of documents and CHADEMA and CUF have filed objections – Habari Leo.

Private candidates

The government has won again in its determination not to allow independent candidates to stand for election. The Court of Appeal has ruled that the private candidates issue can only be settled by parliament which has jurisdiction to amend the constitution.

Registration of CCJ delayed

The Minister of State in the Prime Minister’s Office, Philip Marmo has said that the party set up four months earlier to oppose CCM, the CCJ, would not get permanent registration before the October elections because the Registrar of Parties had no funds to carry out the process of verifying CCJ membership, as required by law. The CCJ is one of six parties waiting to be registered – Tanzania Daima.

Mkullo – “I am a citizen”

Finance Minister Mustafa Mkullo, who is standing for the Kilwa seat in parliament, said he was surprised by allegations by some elders that he was a citizen of Malawi. “If I am really a foreigner, how come they didn’t question my nationality in 2005? I am confident because I was born in Kimamba and raised in Kilosa,” he declared. He had emerged winner in the primaries with 6,000 votes – Nipashe.

Impartiality

The Tanzania Media Council (MCT) has issued a statement condemning media outlets that are used as agents of political parties, calling upon journalists to stop wearing party colours and to stick to professional ethics. MCT Executive Secretary Kajubi Mukajanga said it was unprofessional for reporters to display political slogans while covering party campaigns. They should also stop being biased in their reports and make sure that all political parties got fair coverage. Journalists are not supposed to be more Catholic than the Pope while reporting elections,” he said – Mwananchi.

TANZANIAN OBSERVER & THE UK ELECTION

With Westerners so accustomed to criticising the often flawed elections in African states, 11 parliamentarians from Commonwealth countries in Africa and Asia observed how the recent British elections went. It was not always a pretty sight. People being turned away from polling stations, ballot papers running out and sit-in protests by disgruntled voters were perhaps not what the Commonwealth observers were expecting to see in one of the world’s oldest democracies. The UK Electoral Commission announced an official investigation after queuing voters were unable to cast their ballots in a few polling stations that closed promptly at 22.00.

“This would never have happened in my country,” said Wilson Masilingi, a Tanzanian MP who was an observer in Brighton. “If a prospective voter arrives on time, he can vote up to three hours or more after the polling station closes.” Mr Masilingi was generally impressed by what he had seen but he recommended that powers should be given to the Electoral Commission to tell presiding officers to keep polling stations open for longer. He went on:

“The UK the system is based on mutual trust.” He was impressed by how the polling station had been opened promptly by the presiding officer. “In my country this would not be possible….. There would have to be many people present to make sure the station opened at the right time.”

The good manners between politicians in the UK impressed Mr Masilingi. For example, he was pleasantly surprised when they took defeat – or the suggestion of defeat – so well. “Fifty per cent of politicians who lose in Tanzania would go to court,” he said. “And if filing court petitions was free, everybody would go to court.”

But even if British politicians are extremely nice to one another within a coalition government, Mr Kabudi thinks coalition will be a “daunting” experience for the UK – BBC News.

THE NILE – STILL NO RESOLUTION

After ten years of talks there is still no resolution in sight to the controversy over the use of the waters of the River Nile, according to an analysis published by the UN’s IRIN. Extracts:

“The problem is lack of cooperation in water management,” Debay Tadesse, senior researcher at the Institute for Security Studies in Addis Ababa, said. “There is enough water for all the riparian states and an agreement singed in Entebbe on May 14 opens the way for more equitable management.”

This new agreement, the ‘Nile River Basin Cooperative Framework’ was signed by Ethiopia, Rwanda, Tanzania and Uganda, but was left open for a year in the hope that others among the nine states involved, in particular Egypt and Sudan, would join later. The agreement also transformed the ‘Nile Basin Initiative’ into a permanent ‘Nile River Basin Commission.’ Kenya signed on 19 May.

Egypt’s Water Minister said: “Any project that takes away from the river’s flow has to be approved by Egypt and Sudan in accordance with international treaties.” But, according to Kithure Kindiki of the School of Law at the University of Nairobi, neither the unilateral claims of Egypt on maintaining the status quo on the Nile, nor the threat by upstream states such as Tanzania, to obstruct the Nile-Victoria system, are supportable in law.

The new agreement attempts to review two deals signed in 1929 between Egypt and its former colonial power, Britain, and in 1959 with Sudan. The accords gave Egypt and Sudan up to 87% of the Nile’s flow. Egypt was also given the power to veto dams and other water projects in upstream countries. To monitor the water levels, it maintains teams of engineers along the river. “Egypt’s historic rights to Nile waters are a matter of life and death. We will not compromise” said the Egyptian Minister of Legal and Assembly Affairs. The Sudan indicated that it would not sign the agreement until all the nine states reached a solution to the issues in dispute. But this position could change if Southern Sudan voted for independence in a 2011 referendum.

Ethiopia wants to build more dams on the Blue Nile, Sudan has promised foreign farmers vast pieces of land, in Kenya farmers want to expand irrigation and Tanzania intends to build a 170 km pipeline from Lake Victoria to supply dry areas.

Uganda’s ‘New Vision’ described the Entebbe meeting: ‘The heat intensified and tempers flared and became as hot as the desert sun.’ The upper Nile countries say they were never consulted when the agreements were made and that climate change has disrupted the rainfall patterns.”

On July 27 Egypt offered an olive branch by offering to dig 230 water wells including 30 in Tanzania as part of its development assistance programme.

Eventually it was decided to try again at an emergency meeting to be held in Nairobi between September and November 2010 but Ethiopia, Uganda, Tanzania, Rwanda and Kenya reiterated that they would not backtrack from the framework agreement which they had signed and which seemed to give them a chance to obtain greater access to the Nile waters.

NEW MINING BILL PASSED

Parliament passed the new Mining Bill following heated debate in the National Assembly in April. Prime Minister Mizengo Pinda, Attorney General, Frederick Werema, and Minister for Energy and Minerals William Ngeleja, had to hear hours of critical contributions by MP’s. The Citizen reported that CHADEMA MP Zitto Kabwe, Speaker Samuel Sitta, newly nominated Zanzibar CUF MP Ismail Jussa, and Bumbuli CCM MP William Shelukindo were among those who kept the front bench on its toes, constantly seeking clarification on issues.

The MPs took issue with the inadequate compensation paid to villagers whose land is acquired for mining and also called for more transparency in operations in the industry. Some 84 MPs contributed to the Bill which became the most debated Bill during the 19th parliamentary session.

The Bill provides for:
– the setting up of a new Mining Authority
– the government to effectively manage and supervise the sector
– five year reviews of mining contracts
– setting aside specific areas for small-scale miners to avert conflicts between artisanal miners and big mining companies.
– gemstones to be processed locally; foreigners wishing to mine gemstones will be required to enter into joint ventures with locals.

The Africa Report (No 23 of 23.06.10) commented that this Bill marked an attempt to increase government revenue and ease fierce public hostility towards foreign mining companies. New investors in Tanzania’s mining sector will now be charged 4% rather than 3% royalties for precious and base metals (gross rather than net); they will have to list on the Dar es Salaam Stock Exchange; and, the government will have a stake in any new mining project. Gemstone companies will have to be at least 50% Tanzanian.

The proposed changes are expected to raise mining revenue from $57m in 2009 to $110m in 2010.

ELECTION FEVER

To say that Tanzania is in a state of election fever as the October general elections approach may be an exaggeration but there has definitely been a quickening of the pace in political activity during recent weeks.

Two factions within the ruling party
Following the revelation of differences between the leaders of the ruling Chama cha Mapinduzi (CCM) Party, its National Executive Committee (NEC) set up a group of ‘three wise men’ under the leadership of former President Ali Hassan Mwinyi to try and resolve the differences (TA No 95).

However, when the group reported in mid-February it said that it had failed to reconcile the two factions and the rift between them could not be bridged. Both sides had said that the problem was ‘not personal’ and so could not be resolved by a mere handshake. The NEC eventually decided to give the Mwinyi Committee two more months to continue with its efforts at reconciliation.

The nature of the rift
This whole saga is complicated and it is difficult to define the precise nature of the rift, but the media seem to be agreed that much of the dispute centres on what action should be taken against those found guilty of corruption (described in many previous issues of TA).

The first of the two camps is said to be led by former Prime Minister Edward Lowassa who resigned some time ago following a parliamentary investigation into the Richmond scandal (see below). The second faction is led by National Assembly Speaker Samuel Sitta who wants a much tougher line on punishing those found guilty of corruption.

When the Assembly came to discuss the Richmond case in February, its Standing Committee for Energy and Minerals caused some surprise when it recommended that, as Lowassa had resigned from his position as Prime Minister, there was no need to take any further action against him. Some members of the NEC were far from satisfied with this recommendation, saying the corrupt elements had been let off the hook.

The crucial NEC meeting at which the Mwinyi Committee’s report was discussed went on for longer than expected and President Kikwete, who was supposed to leave for a State visit to Turkey, had to postpone his departure until the next day.

CCM Party Vice-Chairman Pius Msekwa, a member of the Mwinyi Committee, revealed to the press that the NEC had had at one stage to resort to religious scriptures. He said that while he quoted the Bible, Chairman Mwinyi quoted the Koran.

Msekwa felt that, as Lowassa had taken the political decision to resign as Prime Minister, the matter should rest there. He said: “Our party has 4.6 million members. Most of them are not even aware of the ongoing debate among a handful of leaders. How can the party disintegrate?” he asked.

Meanwhile, as an indication of the extent to which CCM differences have spread around the country, during a visit to the
Tabora region by Prime Minster Pinda, scuffles broke out between supporters of the two factions and it soon became apparent to which faction several local MP’s belonged. The Prime Minster finally decided not to allow any further comments or questions from the public.

A new party
While all this was going on, a new political party suddenly arose, called Chama cha Jamii (CCJ). It claimed that it comprised members of the CCM, though at the launch no high ranking MPs confirmed membership. The official launch of the party on March 2 was not a great a success, with no international diplomats and only a small crowd of Tanzanians present.

However, as this issue went to the press, the dramatic news came of the defection of CCM legislator and frontline anti-corruption crusader Fred Mpendazoe Tungu to the new party. Announcing his defection at a well-attended news conference, Mpendazoe (as he is commonly referred to as) repeated charges that the ruling party had sidelined and abandoned the majority poor Tanzanians and embraced the wealthy minority. He suggested most CCM politicians had their eyes focused on personal interests rather than the interest of wananchi (citizens).

The opposition
Both main opposition parties have begun campaigning although they are not supposed to do so until the election date is officially announced.

President Kikwete greets Seif Shariff Hamad on the occasion of the funeral of Ambassador Daudi Mwakawago in Dar-es-Salaam, In the background is former president Mkapa. Photo Mjengwa

Civic United Front (CUF) Chairman Prof. Ibrahim Lipumba, who stood unsuccessfully for the presidency in the last three elections, revealed that he was still wishing for a meeting with President Kikwete to expound several issues including the election laws, amending the country’s constitution, restructuring the National Electoral Commission and the determination of the country’s development vision. “Since President Kikwete was elected to the topmost political office in 2005, I have never met him in a one-to-one encounter” he said.

CHADEMA leader Freeman Mbowe, who stood unsuccessfully for the presidency in the 2005 elections, has decided that in 2010 he will try to capture the Hai, Moshi parliamentary seat from the CCM and will not try for the presidency. He was campaigning in Dodoma as this issue of TA went to press. He promised that a strong candidate would be chosen. Zitto Kabwe, the young, ambitious and very popular CHADEMA MP for Kigoma, is also looking for a new constituency following boundary changes. Five constituencies around the country have invited him to stand.

Who will be standing?
Normally there would be no shortage of candidates for the post of President of Tanzania and in the CCM it has become the tradition to re-elect a first-term president as candidate without opposition. President Kikwete is expected to win whether there is or is not another candidate. So far, only one candidate, John Shibuda MP has declared his intention to challenge him.

CUF’s Professor Lipumba, has not declared what he will do.
In Zanzibar, with President Karume not allowed to stand for a third term, there is no shortage of CCM party members who might want to succeed him. Maalim Seif is expected to be the CUF candidate and two small parties, TADEA and NLD, have said that they would also be fielding candidates.

Election timetable
Nomination forms for CCM presidential candidates will be issued on 1 July this year, while forms for parliamentary candidates will be issued on 26 July.

Monitoring the elections
The Media Council of Tanzania (MCT) has started working on the modalities of media monitoring. Executive Director Kajubi Mukajanga, said that, as the country heads towards general elections, the media regulator had the right to monitor stories published or broadcast during the election. He said the idea was to monitor the campaign and actual polling to make sure irregularities are spotted in time and the involved media house is notified. “We shall be issuing weekly reports on the election as we approach election time, and political fever rises” he added. The MCT will be looking at the language used by the media, ensuring balance in articles and that all aspirants get equal air time during the campaign.

(Much of the above election news comes from the information and views being provided, on a daily basis, in the numerous Swahili and English language newspapers in Tanzania. This illustrates once again the remarkable freedom of expression now considered normal in Tanzania and the enthusiasm of the electorate for the coming struggle – Editor).

ZANZIBAR – COALITION LIKELY

Following the dramatic reconciliation between the two leading parties (CCM and CUF) Zanzibar MP’s have lost little time in pursuing in the Zanzibar House of Assembly the idea of some sort of coalition government.

A private motion was first presented by CUF leader in the House Abubakar Khamis Bakary (CUF) and debated for two days before it was passed. The government was asked to prepare necessary changes in the Zanzibar constitution to allow for the formation of a government of national unity. CCM’s representatives were at first hesitant but later came round and supported the preparation of a Bill.

Similarly, on January 28, CUF, which had been opposed to the idea of holding a referendum as proposed by CCM, changed its mind.

The proposed Bill would therefore provide for a referendum to be held, probably before the next elections, on whether to go ahead with plans for a ‘government of national unity.’

The exact form of this government of ‘national unity’ was the subject of further debate. It could mean a ‘coalition’ or some other form of co-operation between MP’s. Leaders of smaller parties, which have no MP’s in the Zanzibar House, complained about being excluded.

CCM’s National Executive Committee (NEC) seemed to indicate that it would like to avoid such words as ‘coalition’ and ‘government of national unity’ in the proposed Bill. Instead it talked instead of an ‘inclusive government.’ One MP said that this meant that the government would co-opt members from opposition parties that gained more than 10% of the votes in an election.


No time to lose

The pace quickened. Zanzibar Attorney General Idd Hassan Pandu expressed confidence that by July 2010 the structure of a coalition government would be known. While being interviewed on TBC he said: “My office has already received a draft for the coalition, but the Zanzibar Electoral Commission (ZEC) will have to conduct a referendum and declare the result within three months.”

Maalim Seif falls ill

Maalim Seif Shariff Hamad in Shree Hindu Mandal Hospital. Picture Khalfan Said

As the debate continued on these issues, there was concern when one of the two architects of the reconciliation between the two main parties, CUF Secretary General Seif Shariff Hamad (or Maalim Seif as he is best known in Zanzibar) – the other architect is Zanzibar President Amani Karume – was suddenly taken ill at the International Airport in Dar while waiting for a connecting flight to Oman. However, the problem was soon diagnosed as bronchitis and he went back to work shortly afterwards.

Registration of voters
Just before this, Hamad had had his third meeting with President Karume on the registration of voters which had been going very slowly in Zanzibar and had been a serious bone of contention between the parties following allegations that the 2000 and 2005 elections had been fixed in favour of the ruling party – Guardian.

Secret revealed
During an interview with the Guardian on Sunday, CUF National Chairman Prof. Ibrahim Lipumba revealed what happened before the historic reconciliation meeting between the CCM and CUF leaders in November 2009 which had caused so much surprise at the time.
Extracts: ‘After years of hostility between the two parties, it was the friendship between two politicians, CCM stalwart Hassan Nassor Moyo and the CUF founder Secretary General, Shaaban Khamis Mloo, that led the way to the accord…. It might not have happened had it not been for this friendship… the process started from March 15, 2009 when Mloo died. “From the cemetery after the burial, we all went to his home, where Mzee Moyo looked agonised at the departure of his companion, and wondered aloud why political rivalry should continue in the Isles….We witnessed how gravely pained the old man was, and decided that something should be done… it was from then that the roadmap to the ‘maridhiano’ as the accord is now known, was crafted”…. Mzee Mloo had been a staunch CCM member, holding many high offices before the introduction of political pluralism in 1992 when he was one of the pioneer leaders of the opposition….the friendship between Moyo and Mloo was not affected by their political differences. … Taking the cue from Mzee Moyo, one of the pioneers of the 1964 Zanzibar Revolution and a member of the Zanzibar Revolutionary Council from its inception, the rival parties realised that it was pointless to continue to stoke the fires of rivalry and to opt instead for reconciliation.’

CORRUPTION – GOOD NEWS

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.

KILIMO KWANZA – INITIAL STEPS

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

ZANZIBAR –RECONCILIATION AT LAST?

President Karume (left) and Seif Shariff Hamad. Photo Ramadhan Othman Ikulu

There was considerable excitement in Zanzibar on November 5 2009 when it was revealed that the Secretary General of the leading opposition party (the Civic United Front – CUF) Seif Shariff Hamad, whose party won all the elected posts in Pemba in the 2005 elections, had met for two hours President Amani Karume of the ruling Chama cha Mapinduzi (CCM) party, behind closed doors. It was the first visit Hamad had paid to Karume since he had refused to recognise him as the islands’ President after the controversial elections in 2005.

A State House press release said that the two leaders had discussed various matters including the need to ‘maintain peace, tranquility, tolerance and cooperation among all people in the islands’. They also agreed on the need for ‘sustainable negotiations’ between them and their parties.

Hostility at Unguja meeting
Shortly afterwards, on November 7, Hamad had to face an angry crowd of his supporters at a rally in Unguja (the main island) when he revealed that his party now recognised the President. As thousands of people started shouting and milling around the podium, CUF Party (national) Chairman Professor Ibrahim Lipumba took to the podium and tried in vain to calm the crowd. Some of them were heard shouting: “You have betrayed us”.

Lipumba said that the matter would next be discussed in party sittings so as to get members’ views. “If they think we betrayed them, we are prepared to be accountable. Maalim Seif (the name by which Hamad is best known in Zanzibar) has been committed to CUF ever since he left the CCM” Lipumba said. According to the Swahili press, which gave substantial coverage to the event, Lipumba pleaded with the crowd but eventually the rally had to be called off and the leaders were driven off through a narrow alley under tight security.

Addressing a rally later in Tanga, Lipumba urged members all over the country to calm down. He said he was aware that members, especially in Zanzibar, were annoyed by the meeting but he assured them that Hamad would never betray them. “I hear some people accuse him of being bribed. This is rubbish for a person like Hamad who has devoted his life to the CUF party and even spent three years in detention. How can such a man be a sell-out?”

Warmer reception in Pemba
Addressing rallies in Pemba, a few days alter, Hamad received a warmer reception. “We took time to ponder with Karume where we were heading” he said “and we came to the conclusion that we had fought one another for far too long.”

Subsequently, CCM leaders, especially those from the Mainland, were asked to keep out of the reconciliation process which had been initiated by Zanzibaris. CUF Director of Foreign Affairs Ismail Jussa told The Citizen that CCM leaders should remain on the sidelines “because they don’t know what is going on.”

Meanwhile, speculation continued as to whether the two leaders had agreed on anything else, particularly on the possibility of power sharing in government.

It wasn’t until November 15 that President Karume finally commented, although the press wanted to know more than he gave them. He said that no eligible voter would be left out in the registration of voters for the 2010 elections. He made the remarks at a time when hundreds of CUF supporters in Pemba were claiming that they had been denied registration for the next elections because they did not hold residency identity cards.

The President, who will not be seeking election again after two terms, added that “We want both the winners and losers to accept the results. This is possible only if the elections are free and fair.” In another development, the President said he would now appoint two CUF members to the House of Representatives in accordance with previous agreements.

“We weren’t supervised by whites”
CUF Deputy Secretary General Juma Duni Haji told reporters that the talks between Seif Shariff Hamad and President Karume were held in secret so as to avoid ‘interference’ by people with ulterior motives. He said the previous ‘Muafaka’ (agreements) had failed, partly because they were sponsored by the donor community. Hamad said everything was now forgotten and forgiven. “Countries like Kenya and Zimbabwe resolved their differences with the help of outsiders but in Zanzibar that was not the case. It is better for locals themselves to resolve their problems with home-grown solutions. That is why, in our case, no white man supervised us.” – Nipashe.

Some uncertainty remains
Although the two parties were showered with praise by all parties in Tanzania and from many in the international community, some doubts were still being expressed as to whether the agreement would stick and, in particular, whether it might lead on to power sharing. Professor Lipumba said they were not sure as everything had been done orally. “It is a political risk we took, so I can’t guarantee that everything will turn out the way we expected.”

Then two Zanzibar government ministers spoke against the idea of a coalition government and power sharing. Deputy Chief Minister Ali Juma Shamhuna and Minister of State in the Prime Minister’s Office (Union Affairs) Mohammed Seif Khatib, differed with President Karume who had said that the issue of power sharing would have to be decided by the people. Minister Shamhuna said that Zanzibar did not need power sharing or a government of national unity. What was needed was for the parties to accept the election results. Minister Khatib told a rally in Pemba that national unity did not necessarily mean co-opting another party into the government. “CCM alone is capable of bringing about unity as that is its policy,” he declared – Mwananchi.