Prime Minister Mizengo Pinda has termed “unfair” the decision by 12 key donor countries to suspend $558 million (Sh937 billion) aid in General Budget Support (GBS) for the 2014/15 financial year.
Speaking in London, Mr Pinda said the donors jumped the gun over the reported Sh201 billion Independent Power Tanzania Limited (IPTL) escrow monies scandal. “The donors were unfair to Tanzania in their action. They should have waited for the relevant state agencies to release a report on the investigations,” Mr Pinda said in an interview with the BBC Swahili television on Tuesday.
“I am asking myself why they were so quick to make such a decision when the matter was still under investigation,’’ he wondered.
Mr Pinda used the same live BBC interview to officially confirm that he would be gunning for the CCM ticket to succeed President Jakaya Kikwete in next year’s General Election. He joins a growing list of ruling party cadres wanting to become president.
The Prevention and Combating of Corruption Bureau (PCCB) and the Controller and Auditor General (PCCB) separately conducted investigations into the payment of the escrow funds to Pan Africa Power Solutions Tanzania Limited (PAP) in a scandalous IPTL take over. The findings of the investigations are yet to be made public, but may be tabled in Parliament in early November.
The Premier’s protest was the first time that a top official in the executive was making a direct comment following a move by Finland, Sweden, Denmark, the European Commission, Ireland, Germany, Britain, Norway, Canada, Japan, the World Bank as well as the African Development Bank to withhold budget funding.
Government execution of certain projects has taken an early hit with Ms Kati Manner, the head of cooperation at the Finnish Embassy (GBS chair), confirming only $69 million (Sh110 billion) of the total pledges has been released to the Treasury.
But Mr Pinda remained optimistic, giving an assurance that there should be no cause for alarm. He said, however, it was unfortunate the donors’ action had adverse impacts on the country’s development.
The donors have made it clear that they would be in a position to take a different action only when the government makes public the findings of the CAG investigation.
The government has already reached out to IMF to find a solution on how it could help fix the budget gap, with commercial borrowing and more austerity measures being considered upfront to forestall a budget crisis as huge public expenditure programmes tax the State. Among them are plans for a referendum on the proposed new constitution, bio-metric voter registration kits (BVRs) and preparations for the local government elections slated for December. Others are the ongoing issuance of the national identity cards (IDs), preparations for the 2015 General Election and the rollout of projects in the health, infrastructure, energy and education sectors. A huge chunk of the donor money is usually directed to the social sectors.
On his presidential ambition, Mr Pinda said while he has made the decision to run, he was yet to make it official. “We have many people who have declared their intention to vie for the country’s top job, and I find it good in terms of politics. The most important task lies with Tanzanians who will finally make rational and informed decisions to decide who fits this position better,’’ he said.
Speaking in London, Mr Pinda said the donors jumped the gun over the reported Sh201 billion Independent Power Tanzania Limited (IPTL) escrow monies scandal. “The donors were unfair to Tanzania in their action. They should have waited for the relevant state agencies to release a report on the investigations,” Mr Pinda said in an interview with the BBC Swahili television on Tuesday.
“I am asking myself why they were so quick to make such a decision when the matter was still under investigation,’’ he wondered.
Mr Pinda used the same live BBC interview to officially confirm that he would be gunning for the CCM ticket to succeed President Jakaya Kikwete in next year’s General Election. He joins a growing list of ruling party cadres wanting to become president.
The Prevention and Combating of Corruption Bureau (PCCB) and the Controller and Auditor General (PCCB) separately conducted investigations into the payment of the escrow funds to Pan Africa Power Solutions Tanzania Limited (PAP) in a scandalous IPTL take over. The findings of the investigations are yet to be made public, but may be tabled in Parliament in early November.
The Premier’s protest was the first time that a top official in the executive was making a direct comment following a move by Finland, Sweden, Denmark, the European Commission, Ireland, Germany, Britain, Norway, Canada, Japan, the World Bank as well as the African Development Bank to withhold budget funding.
Government execution of certain projects has taken an early hit with Ms Kati Manner, the head of cooperation at the Finnish Embassy (GBS chair), confirming only $69 million (Sh110 billion) of the total pledges has been released to the Treasury.
But Mr Pinda remained optimistic, giving an assurance that there should be no cause for alarm. He said, however, it was unfortunate the donors’ action had adverse impacts on the country’s development.
The donors have made it clear that they would be in a position to take a different action only when the government makes public the findings of the CAG investigation.
The government has already reached out to IMF to find a solution on how it could help fix the budget gap, with commercial borrowing and more austerity measures being considered upfront to forestall a budget crisis as huge public expenditure programmes tax the State. Among them are plans for a referendum on the proposed new constitution, bio-metric voter registration kits (BVRs) and preparations for the local government elections slated for December. Others are the ongoing issuance of the national identity cards (IDs), preparations for the 2015 General Election and the rollout of projects in the health, infrastructure, energy and education sectors. A huge chunk of the donor money is usually directed to the social sectors.
On his presidential ambition, Mr Pinda said while he has made the decision to run, he was yet to make it official. “We have many people who have declared their intention to vie for the country’s top job, and I find it good in terms of politics. The most important task lies with Tanzanians who will finally make rational and informed decisions to decide who fits this position better,’’ he said.
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