Tanzania’s President Jakaya Kikwete is expected to end weeks of anxiety when he announces, on December 22, his decision on the recommendations made by the Parliamentary Accounts Committee on the Tegeta escrow scandal involving the fraudulent withdrawal of Tsh306 billion ($183 million) from the central bank.

The committee wants key government officials and individuals linked to the scandal to leave office, face prosecution, or both. Implementing the recommendations could end the political careers of key members of the government, as well as see President Kikwete lose a number of loyal friends.

Meanwhile, the opposition is threatening a no-confidence vote in the president and his government if he makes history by going against the legislature and failing to implement the recommendations.

The money was withdrawn from the Tegeta escrow account, which had been created following a disagreement between Independent Power Tanzania Ltd (IPTL) and the country’s power distributor, Tanesco.

Demand for action

According to the PAC, the money was withdrawn after Kenyan businessman Harbinder Singh Sethi irregularly acquired IPTL. The committee now wants him arrested and prosecuted.

Among the leaders the committee wants punished over the matter is Prime Minister Mizengo Pinda, for being in the know about the transactions, but failing to take action. Should he be forced out, he would be the next big fish the scandal would have claimed after the resignation of Attorney-General Frederick Werema last week. The committee had stated that the AG, who is the chief state legal advisor, did not discharge his duties properly when he advised the Bank of Tanzania on the withdrawal of the Tegeta escrow cash.

The committee has also demanded the sacking of Energy and Minerals Minister Sospeter Muhongo, for repeatedly misleading parliament by saying the escrow money did not belong to the government but to individuals. The PAC also said that Prof Muhongo was a key agent in initiating a meeting that resulted in the transaction that led to the withdrawal of the money.

Others who could face the sack are Minister for Housing and Human Settlement Anna Tibaijuka, who received $1 million from one of the firms at the centre of the scandal, and Energy and Minerals Deputy Minister Stephen Masele, who is accused of misleading the House on the Tegeta escrow saga.

The committee also wants Permanent Secretary in the Ministry of Energy and Minerals Eliakim Maswi sacked for failing to perform due diligence.

The director of presidential communications said the President had already made a decision on the matter, and would announce it on Monday, December 22, at a meeting with Dar es Salaam elders.

On the anticipated decision by the president, Zitto Kabwe, the PAC chairman, said that never in the country’s constitutional history had the executive gone against the legislature, and warned that such an action would provoke the opposition to move a censure motion against him.

Meanwhile, the lawyers of Pan African Power Solution, Independent Power Tanzania Ltd and Mr Sethi filed a constitutional petition at the High Court under a certificate of urgency, seeking to block implementation of the PAC resolutions.

In their petition, the lawyers say the resolutions passed by parliament portrayed the petitioners as criminals and corrupt people who should be prosecuted.

They are seeking an injunction to prevent the director-general of the Prevention of and Combating of Corruption Bureau, the Speaker of the National Assembly and the Attorney-General from acting on the resolutions.