Peer Reviewer 1:
The power crisis during the year under review typifies high level corruption that has direct bearing to the lives of the common, mostly poor people who shoulder the resultant burden. It is vital to note that power tariffs between early 2006 and mid 2007 have been raised by 11 percent while the power utility firm has lodged a fresh appeal to raise the tariffs by 40 percent.
The 100MW Richmond emergency power supply contract took over 14 months to materialize but it did so after operations were handed over to a second party and at a cost which was lowered from US$172 million to US$102 million. The controversy surrounding the mysterious faces behind the force to hand the contract to a phantom firm led to the removal of former Energy Minister Dr. Ibrahim Msabaha and his Deputy Laurence Masha. Prime Minister Edward Lowassa, despite suspicions linking him to the deal, has denied his involvement, and no direct evidence has been found linking cabinet ministers.
The heat generated last year by Richmond-related corruption allegations may have triggered the withholding in December 2006 of over 4 billion shilling (US$3.6 million) in financial aid by Denmark, in order to force the tabling in Parliament of the anti-corruption bill that has since been enacted.
Tanzania's main donors have also pushed for independent investigation into funds embezzlement at the Bank of Tanzania through the external debts payment account, in which hundreds of millions of dollars have reportedly been illegally siphoned. An internal audit has unearthed about US$40 billion, while investigations by Ernest and Young are due to be completed in November 2007. Donors, who account for up to 40 percent of the government budget, have pegged their 2007-2008 financial commitment on the outcome of this investigation and the actions that will ensue.
Peer Reviewer 2:
I must admit that the Reporters Notebook is well-written. I would, however, wish to make some comments about various issues which have been raised.
The electricity crisis was indeed a pain in the neck for many people last year, but the power utility (TANESCO) tried its best to mitigate the situation to its clients, particularly the domestic ones. The load-shedding schedules were such that electricity was switched off during the day and switched on at night, and when the production situation worsened blackouts were elongated to nearly midnight. The reporter is talking about thieves and bandits who took advantage of the blackout to terrorize people in the streets. I do not see any justification of that, unless he can provide specific example of such incidents which were reported to the police.
Electricity problems were so severe to the extent that some people had to inevitably use charcoal for cooking, but that was not an extreme case. Charcoal is widely used for cooking amongst many people, both in urban and rural areas. So I do not agree that charcoal completely replaced electricity for domestic use, except for a few affluent families who had been using electricity for cooking.
I agree that the electricity problems had to some extents exacerbated the water crisis, most notably in Dar es Salaam, but I do not think that was the reason for people to drink water from unhygienic sources. The society has been repeatedly sensitized on the importance of boiling water before they consume it; perhaps some people do drink unsafe water out of ignorance and not due to the scarcity of clean water. We must remember that TANESCO gave a special (electricity supply) priority to the industrial sector.
Regarding the Bank of Tanzania scandal, I am informed that the allegations are being investigated and the report is due in December 2007.
Peer Reviewer 3:
The Reporter's Notebook gives a vivid picture of the gravity of the corruption cankerwom in Tanzania. It reflects how political corruption is denying the masses the much-needed development in their lives. Grand corruption in the form of contracts is becoming the major threat to the country's path of development, as it embarked on the road towards market economy after three decades of centralized economic planning.
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