Embezzlement saga hits Tanzania

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By our correspondent

The current corruption reports showing that more than Sh48 billion has been embezzled by corrupt officials as the saga continued to hit Tanzania after the company’s foreign-open the case owe compensation to Sh3 billion in compensation from the purchasers of cotton for failing to fulfill terms of the contract.

Corruption cases are coming when the government provided money in the process of plan to revive the economy (stimulus package) and Parliament passed an emergency budget of Sh1.7 trillion.

Speaking from Mbinga yesterday, MP for Kigoma North (Chadema), Kabwe Zitto who is also the deputy Minister of Finance, said that there was a case that demonstrates that the report of the Controller and Auditor General of Government (CAG), that there is more than Sh48 billion, which has failed then establish whether it came from the procedures required to correct.

Kabwe made this statement, making reference to information released yesterday by the Citizen’s sister paper, The Sunday Citizen that the cotton industry in the country could fall after foreign buyers demanding a ransom of $ 2 billion, equivalent to Sh3 billion due to the breached contract.

April 15 this year, Zitto had made same allegations of corruption over Shs 48 billion put to task Prime Minister, Mizengo Pinda, during the questions and answers in parliament. He said according to the CAG report, the money vanished in order to streamline the planning economy (stimulus package).

According to testimony, the Kabwe had urged the Prevention and Combating Corruption (Takukuru) with CAG investigations detailed in the spending plan to revive the economy. “We need answers before the session of the budget because as I said earlier, these are lot of money, “said Kabwe.

Zitto said that the government refused to provide to him useful information including a list of people and companies that profit and the use of the Sh48 billion that filed the case now is proof that traders of cotton should not be compensated because they did not have any losses as alleged.

He said the case shows that traders are selling their products in markets that are profitable. Sunday Citizen, yesterday reported that processors and retailers had entered into a contract to transport tons 260,000 cotton but were transporting tons 162,000 only if the same is 62 percent of the amount they agreed.

Director General of the Tanzania Cotton Board (TCB), Marco immediately said some foreign companies filed a case with Liverpool Cotton Association (LCA) which is the Federal owe her compensation for failure to honor contract as agreed.

Immediately said the failure of the purchasers those of cotton to fulfill the terms of the agreement, stemmed from factors that are outside the ability of transporters cotton inside and outside as well as bad weather, poor management of the system of voucher payments to farmers and the poor state of economy the world in 2008 which made world cotton prices lower along with disrupted by domestic production.

Although Law No. 225 of the LCA does not recognize the failure of the contract implemented by various excuses including natural disasters, that means that all the burden of blame falls buyers regard them in a vicious that buyers were brought by.

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