A preliminary investigation into State-owned energy firm Tanzania Electric Supply Company Ltd (Tanesco) has revealed financial irregularities and dodgy dealings in the award of tenders.

The probe, conducted by National Audit Office forensic investigators, Tanzania Intelligence and Security Services and a special task force from the Ministry of Energy and Minerals, is one of three at the parastatal which have seen the director-general and six senior general managers sent packing.

The other two investigations are also looking into irregular tender awards involving companies, some of which are owned by Members of Parliament, senior government officials and senior managers of the energy firm and influential individuals.

In one case, The EastAfrican has learnt, a firm owned by a well-known businessman with connections to the ruling elite was paid $50 million for delivered goods and another $5 million as a contingency fund.

The energy company is also reported to have paid inflated fees for services and awarded a tender to a company that had not fulfilled all the requirements.

Tanesco awarded a Tsh338,247,000 ($212,067) to a firm for repair and maintenance of Ifakara 33KV line from Kidatu to Mahenge and Mtibwa 33KV Line from Mkundi to Mvomero “knowing that the firm has business ties with senior managers of Tanesco,” the investigation report states.

Zeroing in on senior official

The report also reveals that, while the awarded company had claimed to have 20 technicians skilled in live line technology services, it used Tanesco employees to undertake the work.

The investigation is also zeroing in on a senior Tanesco official who is accused of signing a Tsh884,550,000 ($554,825) contract on behalf of the firm with a company in which he, his wife and their two sons are directors.

Investigators in the three instances have reviewed more than 275 files from Tanesco, Tanzania Revenue Authority and the Public Procurement Regulatory Authority of Tanzania.

“The investigative team has gathered enough evidence for the case to proceed and the government will notify the accused in due time,” said a senior investigator from the government.

Tanesco officials were also said to have shipped electricity transmission poles produced in Iringa to the port of Mombasa then ‘imported’ them bearing South African labels.

The firm also bought substandard or fake motor vehicle tyres from MPs and paid the entire Tsh600 million ($376,343) tender amount for tyres worth Tsh300 million ($188,171).

Some corrupt Tanesco officials also purported to import £50,000 spare parts from the United Kingdom but instead delivered a box of nails.

The investigators also unearthed a diabolical Ghost Vending System through which some big-time customers stole electricity using Luku meters.

Professor Sospeter Muhongo, Minister for Energy and Minerals told The EastAfrican recently that the government would flush out corrupt elements in Tanesco and turn the firm into an economically productive entity.

In August, the Prevention and Combating of Corruption Bureau (PCCB) launched separate investigations into the allegations of corruption involving MPs.