How IPTL saga frustrates Govt

Dingswayo · 2014-10-12T07:10:15+00:00

Tanzania has told the World Bank that development partners (donors) have instituted stringent conditions that were holding back the country's budget implementation. The Permanent Secretary Ministry of Finance Dr Servacius Likwelile said in Washington that development partners were demanding Tanzania to first sort out Independent Power Tanzania Limited (IPTL) issues before they provide funds for implementation of the government budget. The PS made the remarks during a meeting between the World Bank and the Tanzanian delegation, but the same time he praised the bank's cooperation with Tanzania. On Wednesday this week, donors confirmed withholding of Sh1trilion aid aimed for Tanzania advising IPTL cases should be investigated regarding the Escrow account. He said support from the global financial institution had brought about economic improvements in the country. Dr Likwelile said: "However, regardless of these economic improvements there has been a problem that is failing our budget implementation. "And this comes as a result of donors demands that issues related to IPTL to be resolved first…this IPTL issue was never in our agreements." The Paymaster General noted: "IPTL has no relations with our original agreements with development partners. This has only been chipped in, affecting our budget implementation," he said. However, the PS also faulted a World Bank stand requiring the country to direct some projects to cover Maasai tribe only, on claims that the tribe is being isolated. "This is very challenging," he said. It was fully established during the discussion that delays of project funds have contributed greatly to holding back development process. The meeting involved Denny H. Kalyalya, the outgoing Executive Director of the World Bank first group for Africa, and Peter Larose who is taking over. It was agreed that the concerns raised by Tanzania would be tabled at higher level meetings for further discussion, with Dr Likwelile noting that if the issues are seriously dealt with the country would benefit economically. On Thursday, the first meeting of the first group of African countries held a meeting in Washington DC. It is tradition for such meetings to take place when the World Bank and the International Monetary Fund have their meetings. The meetings involve countries with access to soft loans issues by IDA. One of the local papers reported that development partners had not released a single dollar out of the $558 million, that had been pledged to boost Tanzania's 2014/15 budget and that they will only give it out upon seeing and being satisfied with the outcome of the investigations into the controversial payments of Independent Power Tanzania Limited (IPTL) escrow monies to Pan Africa Power Solutions Tanzania Limited (PAP). The DPs Chairperson, Finnish Ambassador to Tanzania Sinikka Antila, was quoted confirming that nearly Sh1 trillion, which was meant to support the country's 2014/15 general budget, has been suspended pending the release of the IPTL probe reports. She said the donor community was concerned over how the Escrow monies were paid to the company that claims to have bought 70 per cent shares of IPTL, which were held by a Malaysian firm, Mechmar Berhad Corporation. That the donors would for the time being wait for the final CAG report before making any categorical commitment to support the national budget. "Budget support development partners in Tanzania take the emerging IPTL case with the utmost seriousness and are carefully monitoring its development as the case involves large amounts of public funds," she said. Earlier the Kigoma South legislator David Kafulila (NCCR-Mageuzi) was quoted telling reporters that donors, especially those in EU countries, were withholding funds meant to support the 2014/15 Budget pending the release of the two probe reports on the $250 million in Escrow monies. Part of the money was paid directly to Pan Africa Power Solutions Tanzania Ltd (PAP) after the company claimed it has bought 70 per cent shares in Independent Power Tanzania Limited (IPTL). "If the government fails to take serious measures against the culprits, its obvious donors will not release funds," he said. SOURCE:GUARDIAN

Thread starter Dingswayo
Start date Oct 12, 2014

Dingswayo

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How IPTL saga frustrates Govt

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