Govt faulted on bulk oil import plans

Rutashubanyuma · 2010-12-27T09:45:50+00:00

Govt faulted on bulk oil import plans By Judica Tarimo 24th December 2010 Energy and Minerals Minister, William Ngeleja Newly announced bulk oil importation arrangement came under scathing attack yesterday, as experts and some public members say it could fuel grand corruption and high prices in the countrys petroleum industry. The reaction follows Wednesdays announcement by the government that the tender for the planned bulk oil importation would not automatically go to the state-run TPDC. Energy and Minerals Minister, William Ngeleja said the tendering process for a company to import oil in bulk will be competitive involving both private and public oil companies. TPDC will no longer import bulk oil as was the case previously. Instead the (tendering) process will be competitive and will involve both public and private oil companies, he told reporters. However some experts and some legislators faulted the latest government arrangement, describing it as a brainchild of a syndicate and well-connected network of corrupt oil marketing investors who plan to sabotage one of the countrys most sensitive sectors. Dr Haji Semboja, an economist from the University of Dar es Salaam (UDSM) said there is a high likelihood that oil marketing companies will benefit more while the people are subjected to more suffering if a private investor wins the tender to import oil in bulk. He said the oil marketing industry in the world is managed by professional, intelligent and more experienced people than the regulator (Energy and Water Utilities Regulatory Authority-EWURA). Even with the presence of the regulator, these people can still manipulate the rules of the game in order to generate super profits at the expense of millions of Tanzaniansthey can form cartels, and do anything to benefit at the expense of Tanzanians, said the don. He said that leaving the task of bulk oil importation in the hands of private players would have adverse and serious impact on the country in terms of increased fuel prices, corruption in the sector and loss of government revenue. There is even the possibility of this private (bulk importer) to collude with the regulator (EWURA) in manipulating prices and other importation rules for the benefit of a few people, leaving Tanzanians suffering, said Semboja. The don suggested that the government have its hand in the bulk importation process, saying this could be done by empowering TPDC in terms of human resources, finance and other capacity building elements to handle the task. The government must have its hand, either through TPDC or any other state-owned department, because private oil marketing companies the world over, are more shrewd than EWURA, he noted, adding: Even if the tendering process to pick the importer is competitive, they can still (oil marketing) manipulate the sectorthese people talk the same languagethis is their practice in many parts of the world. He described the approach of picking private company to import bulk oil as governments failure to invest and support development of the lucrative oil sector. Simanjiro MP, Ole Sendeka said assigning the task of importing oil in bulk to private company would create natural private-monopoly in the oil marketing industry. If not checked, he said, the trend would create what he termed a group of few rich peopleif left alone, private players can manipulate prices. In fact, safety and security of this country would be under threat, said the outspoken legislator. However, EWURA Director General, Haruna Masebu argued that the new approach of picking the bulk importer would control corruption in the sector, dismissing the allegations that the move was a brainchild of corrupt oil markets and that it would fuel corruption and cartel practices. I dismiss all allegations as untrue, because this new system would not allow corruption and other malpractices as they claim. Oil companies that wants get the tender would be subjected to international competitive bidding, said Masebu. On top of that, EWURA would still regulate operations of the bulk importer. There is no room for corruption or hiking of prices, added. There was a heated debate in the 9th Parliament, as legislators pressed the government to entrust the state-run Tanzania Petroleum Development Corporation (TPDC) with task of importing petroleum products in bulk. According to the MPs, the move would help to avoid possible corruption and other malpractices including skyrocketing of fuel prices in the oil-marketing industry, if the bulk oil importation task would be given to private investors. SOURCE: THE GUARDIAN

Thread starter Rutashubanyuma
Start date Dec 27, 2010

Rutashubanyuma

JF-Expert Member

Dec 27, 2010

Rutashubanyuma

JF-Expert Member

Dec 27, 2010

Thread starter
#2

You must log in or register to reply here.

Facebook X Bluesky LinkedIn Reddit WhatsApp Email Link

General Forums
Biashara, Uchumi na Ujasiriamali

Our Community

JamiiCheck
JamiiVoices
JamiiStories
JamiiData
JamiiCourses
JamiiShop
JamiiSocial
Premium Content
Start Discussion

Regional Communities

Tanzania
Uganda
Kenya

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts