FINALLY, THE VERDICT ON ESCROW SCANDAL IS HERE

 
Dodoma.
Prime Minister Mizengo Pinda could be the highest placed state official to pay the price of the Sh306 billion Tegeta escrow scandal that has captured national attention in recent months.

The Public Accounts Committee (PAC) yesterday recommended that Mr Pinda and other top government officials take political responsibility and resign over the scandal involving funds that were fraudulently withdrawn from the Central Bank and shared out.

Mr Pinda is now staring at the possibility of following in the footsteps of his predecessor, Mr Edward Lowassa, who resigned in 2008 in almost similar circumstances involving Parliament and another power scandal--Richmond.

The government will react today to the damning findings and far reaching recommendations that could lead to a reshuffle in the government. If Mr Pinda resigns, he would the second leader to do so during Mr Kikwete’s reign.

Tabling the eagerly-awaited report in Parliament yesterday, PAC Chairman Zitto Kabwe and his deputy, Mr Deo Filikunjombe, took time to present the shocking findings on how a Kenyan businessman, in collaboration with high-ranking state officials, hatched a plot to grab the money from the Bank of Tanzania.

Other top government officials implicated in the saga are Attorney General Frederick Werema, Permanent Secretary in the Ministry of Energy and Minerals Eliakim Maswi, Energy and Minerals Minister Sospeter Muhongo and his deputy, Stephen Masele.

The PAC recommended that the bureaucrats resign and face court charges. The committee wants the political heads removed from office.

The 111-page report recommended that Mr Pinda take political responsibility for “misleading” statements he made in the National Assembly and for failing to discharge his constitutional responsibilities effectively. The Prime Minister had critical information on the money that was stolen from the Escrow Account, according to evidence submitted to the office of the Controller and Auditor General (CAG)’s office.

According to Mr Filikunjombe, the prime minister was in the know about the transactions but failed to take action, leading to the loss of the escrow money. The premier was quoted in a local daily saying IPTL was a clean deal.

The PAC reports that Judge Werema, who is the chief state legal adviser, did not discharge his duties properly when he advised the Bank of Tanzania (BoT) on the withdrawal of the Tegeta escrow cash.

“Judge Werema misused his discretionary powers when he advised the BOT governor on the interpretation of the High Court ruling that was delivered by Judge John Utamwa,” he said. The AG ordered that Sh21 billion that was supposed to be paid as tax to the government should not be released.

The committee proposed that the CAG’s appointment be revoked. It also wants him arraigned to court immediately for abuse of office over the loss of the billions of shillings.