Zitto na Demokrasia

Zitto na Demokrasia

PRESS RELEASE: Contracts review is a publicity stunt and creation of unnecessary uncertainty in the sector

with 11 comments

Subject: Contracts review is a publicity stunt and creation of unnecessary uncertainty in the sector

Irresponsible statements by the Minister of Energy and Minerals will cost our country dearly not only in developing the crucial Oil and Gas but also in attracting foreign direct investment. What is needed in Tanzania is transparency of contracts, sanctity of contracts and building the crucial capacity of TPDC and not mere words from the Minister who actually signs the contracts.

Announcing review of all production sharing agreements (PSA) to be done by the new board of TPDC is simply a publicity stunt by the Minister. What the Minister is unaware of and totally ignorant of is the fact that many reviews have been done and nothing has been done about it. The Parliamentary committee on Public organisations (POAC) had asked TPDC through the office of the CAG to audit all the contracts. Out of 26 contracts, only 4 were audited and one (PanAfrica Energy) was found to have inflated their costs to the tune of USD 26 Million. So review will add nothing except earn short lived publicity for the Minister for his cow boy approach while throwing the sector in huge UNCERTAINTY and slowing down momentum.
Borrowing the words of the US President Barack Obama…..The Minister is shooting first and aiming later portraying a confrontation approach that is ill-advised. His approach on how he is handling this sector will cost our country dearly. The oil and gas companies are very cautious and one thing is certain : they don’t work in uncertain environments where contracts are under threat of being revoked.

What is needed in Tanzania is TRANSPARENCY. The contracts must be made public and the new law must give powers to Parliament to approve the contracts. That is the transformation we need to ensure that our country benefits from it’s resources. If the Minister is serious about walking the talk he must bring these amendments to Parliament instead of uttering irresponsible statements in press conferences.

Another sensible radical transformation needed now is the enactment of the Petroleum Revenue Management act. It doesn’t help just mentioning ‘revenue must not go to treasury’. We must be clear on how we will use this income now to ensure  all Tanzanians and their children see the benefits. Establishment of sovereign development fund instead of a sovereign wealth fund shall be a unique departure for Tanzania from the resource curse other African countries are suffering.

We (Tanzania) are competing with Mozambique to build the first LNG plant to supply the Far East Asian markets out of East Africa. While our neighbors are working hard and on time, we do the talking. This must end

Zitto Kabwe
Shadow Finance Minister

Written by zittokabwe

September 17, 2012 at 5:08 PM

11 Responses

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  1. good job Zitto. We need transparency in all contracts

    Hans

    September 17, 2012 at 5:38 PM

  2. With this ccm leadership no one will wake up from dream potraying better life and if so it will be dreaming demonic dreams along the grean pastures .

    nubi

    September 17, 2012 at 8:05 PM

    • i agree with you zitto, the contract should be placed at the parliament as the final say, not the ministers. kumeshakuwa na mikataba mibovu saaaaaaaaaaaana

      kulthum

      September 18, 2012 at 10:37 AM

  3. I love that you said that we should create a SDF instead of a SWF, or maybe a SWF which will be specifically be used for development purposes. If we ever create a SWF I believed should be modelled around the SWF of Singapore, Temasek, which I believe is the benchmark of a SWF. Thank you for this article.

    moses tendwa mjingo

    September 18, 2012 at 8:49 AM

  4. MH ZITTO

    IF POSSIBLE PUT THIS MSG IN SMPLER/NON TECHNICAL LANGUAGE FOR LAY PEOPLE TO UNDERSTAND. I AM CERTAIN PEOPLE LIKE ME HAVE BEEN LEFT OUT WORSE OFF THAN BEFORE THEY STARTED READING WHAT YOU WANTED TO CONVEY

    DOMINICO KABYEMERA

    Dominico Kabyemera

    September 19, 2012 at 10:49 AM

  5. […] ambayo Serikali imeingia na Wawekezaji. Uwazi wa Mikataba sasa. Nimewahi kuandika huko nyuma (https://zittokabwe.wordpress.com/2012/09/17/press-release-contracts-review-is-a-publicity-stunt-and-c… ) kwamba njia pekee ya Watanzania kufaidika na utajiri wa rasilimali zao ni kuhimiza uwazi wa […]

  6. […] ambayo Serikali imeingia na Wawekezaji. Uwazi wa Mikataba sasa. Nimewahi kuandika huko nyuma (PRESS RELEASE: Contracts review is a publicity stunt and creation of unnecessary uncertainty in the … ) kwamba njia pekee ya Watanzania kufaidika na utajiri wa rasilimali zao ni kuhimiza uwazi wa […]

  7. […] ambayo Serikali imeingia na Wawekezaji. Uwazi wa Mikataba sasa. Nimewahi kuandika huko nyuma (PRESS RELEASE: Contracts review is a publicity stunt and creation of unnecessary uncertainty in the … )kwamba njia pekee ya Watanzania kufaidika na utajiri wa rasilimali zao ni kuhimiza uwazi wa […]

  8. […] ambayo Serikali imeingia na Wawekezaji. Uwazi wa Mikataba sasa. Nimewahi kuandika huko nyuma (PRESS RELEASE: Contracts review is a publicity stunt and creation of unnecessary uncertainty in the … )kwamba njia pekee ya Watanzania kufaidika na utajiri wa rasilimali zao ni kuhimiza uwazi wa […]

  9. so strange you speak of TRANSPARENCY and yet, you’ve refused to force CAG to post all his audit reports online.

    Why cant we have individual CAG reports on BOT, TPA, TRA, TPDC etc?

    Najash

    July 14, 2014 at 12:32 PM

  10. […] ambayo Serikali imeingia na Wawekezaji. Uwazi wa Mikataba sasa. Nimewahi kuandika huko nyuma (https://zittokabwe.wordpress.com/2012/09/17/press-release-contracts-review-is-a-publicity-stunt-and-c… ) kwamba njia pekee ya Watanzania kufaidika na utajiri wa rasilimali zao ni kuhimiza uwazi wa […]


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