Tanzanian Prime Minister Implicated in Fraud

Tanzanian politicians are calling for the resignation of the prime minister, Mizengo Pinda, after a government report implicated him in an energy scandal that resulted in the plunder of more than $120m (£76.5m) from the country’s central bank.

In a dramatic parliamentary session on Wednesday that was disrupted by power outages, Tanzania’s public accounts committee (PAC) revealed that senior officials authorised fraudulent payments to offshore bank accounts under the guise of energy contracts. The state-owned energy provider Tanesco, along with five senior politicians – including the minister for energy and the attorney general – are implicated in the scandal, the PAC said.

Investigators said that Tanesco formed a joint escrow (holding) account in 2006, known as the Tegeta account, with Independent Power Tanzania Limited (IPTL), which is owned by Pan Africa Power (PAP). Funds from this account were transferred to offshore bank accounts held by private businessmen and government officials, the committee said.

Tanzania’s Revenue Authority (TRA) has called for Interpol to investigate the role of Harbinder Singh Sethi, a businessman suspected of organising fraudulent payments, as well as James Rugemalira, who is suspected of siphoning off funds through his stake in IPTL.

Tanzania Energy Scandal

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