While celebrating 50 years anniversary I take this hard time to memorize you on the corruption
scandals happened in our country.Issue/ Event
Date of Event Cost to the Nation
Government Explanation
BAE Security Radar Scandal
1999
28 million
Tanzania government agreed to buy
over-priced radar, which at the moment it cannot maintain. It came to be known later; more than
a third of the total purchasing price was paid to a middleman of British citizenship to secure the
contract. Also based on Interpol report, one government minister had siphoned more than 1m to
his bank account in Jersey, UK. After much international legal actions, BAE was ordered by
court to pay 30m to Tanzanian government.[1]
EPA Scandal 2005-2006
US$116 million
The scandal consists of fraudulent payment
of about TSh133 billion ($116 million) made by the Bank of Tanzania to 22 companies in the
financial year 2005/06 involving the repayment of the countrys external debt.[2] After the
transactions became wildly known, the President sucked the Central Bank Governor and asked
"kindly" those who looted the national treasury to return the money. A few months later,
according to a government pronouncement, nearly half of the money (Tsh 60 billion) had
mysteriously found its way back into State coffers. The Attorney General and the Inspector
General of Police have refused to disclose the names, pleading for patience because the
investigation is still going on. So far, not all monies have been returned, and the government has
neither released the names of the culprits nor decided to take any legal actions against them. [3]
Kiwira, Meremeta and other mining related scandals
2000 - present Unknown
Government officials in the previous administrations had taken advantage of the
privatization policies, and privatized national mines to themselves. A good example is Kiwira
mines, which were privatized to two individuals: the president and his minister for Energy and
Natural Resources. The President of that time Mr. Benjamin Mkapa was rather "smart",
registering his shares as AnBen Company; AnBen standing for first names of his wife Ann and
himself Benjamin. [4]
Richmond, Dowans Electricity Scandal
2006
US$150 million (TSh172 billion)
In
2006 Tanzania faced a serious crisis in electricity supply and, as an emergency measure
Richmond was awarded a contract to supply generators to provide 100 megawatts at a cost of
TShs 172 billion. The generators failed to arrive on time and when they did they did not work as
required. The pipeline was never built and the generators were provided by another company.
Under part of the contract however the government agreed to pay some $137,000 a day
regardless of the amount of electricity provided. Opposition MPs began to smell a rat and the
House of Assembly set up a Select Committee to investigate the whole saga under the
chairmanship of the ruling CCM partys Kyela MP Dr Harrison Mwakyembe. The committee
worked diligently and eventually came up with a 165- page report. Parliamentary findings
showed the Prime Minister (Edward Lowasa) to be involved in awarding the contract to nonexisting US-based company, and the Prime Minister resigned. However, the Tanzanian
government had to keep the contract and keep paying a non-existing company US$137,000 a day
without any power being generated.[5]
Despite of the scandals, the president is enjoying honours from various institutions as detailed
below. My worry is are we taking this scandals to the next fifty years simply because the
goverment is a going concern entity? or we just leave them simply citizens do not ask and no one
to blem ( the whole sytem is corrupt).
The CAG report dominated front pages on Nov 27th (millardayo.com)
For a week in November, the attention of Tanzanias political scene was diverted away from the
constitution and the 2015 elections and onto yet another energy sector corruption scandal the
IPTL Escrow case. The long-awaited report of the Controller and Auditor General (CAG) into
the case was presented to the Parliamentary Accounts Committee (PAC) which in turn reported
the key findings back to parliament.
That the report was presented at all was a triumph for parliamentary procedure and for a few
determined MPs, including the Speaker, Anna Makinda, who resisted reported attempts by the
judiciary, the Prime Minister and others to block the debate.
The scandal saw more than 116m taken from an escrow account at the Bank of Tanzania and
transferred to offshore accounts held by private businessmen and government officials, according
to Zitto Kabwe, the firebrand opposition (Chadema) MP and PAC chair. Kabwe presented the
report to parliament together with the PAC deputy chair, Deo Filikunjombe (CCM).
The escrow account was opened in 2006, following a disagreement over charges to be paid by
Tanesco, the national energy utility, to IPTL for emergency power generation. Tanesco was to
deposit money in the account until such a time as the disagreement over charges could be
resolved.
The ownership of IPTL has since changed hands, and a Tanzania-born Kenyan businessman,
Harbinder Singh Sethi, now claims to be the legitimate owner of the firm, and that the funds in
the escrow account were rightly his.
The case hinges principally on two issues: who is the rightful owner of IPTL, and did any or all
of the money in the escrow account belong to the government and/or Tanesco?
The Parliamentary Accounts Committee said that irregularities in the sale of IPTL to Sethis
company, Pan-African Power Solution (PAP) meant he was not the proper owner of the firm.
Citing the support of the Controller and Auditor General, the Director General of the Prevention
and Combatting of Corruption Bureau (PCCB) and the Commissioner of the Tanzania Revenue
Authority (TRA), the committee argued that most of (or all) the funds in the escrow account
were the rightful property of Tanesco.
Attorney General Frederick Werema, Minister of Energy and Minerals Professor Sospeter
Muhongo, Prime Minister Mizengo Pinda and later President Kikwete all disagreed, arguing that
Sethi was the owner of IPTL, and that the escrow account funds were his.
The case has already brought a heavy financial toll to Tanzania. In addition to the money
allegedly stolen from the public purse, the UK and eleven other international donors have
suspended $490m in general budget support for the current financial year, citing the slow pace of
investigations into the case. More recently, the Millennium Challenge Corporation, a US aid
agency, indicated that they were monitoring developments closely and warned that their decision
on a new funding agreement potentially several hundred million dollars would depend on the
Tanzanian government acting swiftly and decisively to combat corruption.
In presenting his committees report, Kabwe drew both shock and laughter as he explained that
the Director General of PCCB had confirmed that people had collected funds in cash from the
Mkombozi and Stanbic bank branches in plastic carrier bags, cardboard boxes, and sisal gunny
sacks. As much as Tshs 73.5bn ($45m) was reportedly withdrawn on a single day in January
2014.
In his response to the parliamentary debate and resolutions, delayed by his health condition,
President Kikwete spared the Minster of Energy and Minerals, Prof Muhongo, though parliament
had called for his sacking. Instead, the President said that he has formed a team to investigate the
Minister, and will make a decision once the team has reported back to him.
Prime Minister Pinda also survived when parliament revised the initial recommendation of the
PAC that he should step aside.
In December the scandal claimed two senior scalps. Attorney General Werema, resigned on 17
December, though he denied any wrongdoing and said he was stepping down because his legal
advice had been misunderstood. A few days later, President Kikwete sacked the Minster of
Lands, Housing and Human Development Anna Tibaijuka for accepting a $1m payment from a
Tanzanian businessman James Rugemalira, linked to the case.
Rugemalira had sold his 30% stake in IPTL to Sethi for $75m, and is alleged to have then
transferred significant money into accounts held by a long list of public figures, including $1m to
Mrs Tibaijuka. She does not deny receiving this amount, but claims that she was merely
channelling the money onwards to a school. Other reported beneficiaries of Rugemaliras
generosity were senior political figures such as former Attorney General and veteran of the BAEradar scandal, Andrew Chenge, two former Ministers of Energy and Minerals, William Ngeleja
and Daniel Yona, and board members and employees of Tanesco, the Tanzania Revenue
Authority, the Tanzania Investment Centre (TIC) and the Registration, Insolvency and
Trusteeship Agency (RITA), as well as two judges and two bishops.
The political impact of the scandal, particularly in terms of the forthcoming elections may be
significant. Pinda, a leading candidate for the CCM presidential nomination, has been weakened
in the public eye. Anna Tibaijuka is no longer a viable candidate. The Speaker, Anna Makinda,
an outside possibility for the nomination, surprised many with her strong handling of the affair
standing up to powerful figures, protecting parliamentary independence, and chairing heated
discussions with considerable dexterity.
Other leading potential CCM candidates for the presidency did their best to stay out of the fray.
Edward Lowassa and Bernard Membe were notably quiet, in public at least, and January
Makamba spoke only in general terms that corruption should not be tolerated.
Though Chadema (aside from their renegade member, Zitto Kabwe,) was late to exploit the case,
the party is likely to pick up some votes from the affair, simply because it makes CCM look bad.
Beyond the presidential race, several MPs reputations were enhanced. David Kafulila (NCCRMageuzi) earned plaudits for his long-standing campaign to bring this case to public attention.
Zitto Kabwes forensic skill and determined handling of the PAC has been noted, and there are
signs of a possible thawing of his previously frosty relations with his Chadema party leaders.
Deputy PAC chair Deo Filikunjombe (CCM), was visibly nervous in presenting the report, and
spoke later of his discomfort in calling for the resignation of a Prime Minister who was seated
just a few feet away. Though his public reputation has been enhanced, he has lost popularity with
some senior party figures, and may therefore face a difficult re-selection process in his Ludewa
constituency.
Anti-corruption investigators continue to look into the case, and promise prosecutions where
appropriate. Despite the pressure being exerted by donors, this may or may not happen. Though
two senior government figures have lost their jobs, the suspicion remains that many others
including senior figures within State House have got off lightly.
In November the Executive Director of Tanzania Legal and Human Rights Centre Dr Hellen
Kijo-Bisimba said President Kikwete failed to take a bold decision on the scandal and in turn
acted like an advocate of Pan African Power Solution. Even Zitto Kabwe showed little appetite
to take the matter further. As Parliament we passed the resolutions by consensus, patriotism and
avoiding being unfair to anyone. Parliament did its work .and Im leaving this matter to
wananchi, they will make their own judgement, he said.
The leader of opposition and chairperson of Chadema Mr Freeman Mbowe said by failing to
sack the architects of the scandal the President showed the country that he is part of the wider
corruption problem. Anna Tibaijuka was but a branch of the scandal, so she was used as a
scapegoat, while [those who] orchestrated the whole thing are yet to be touched, he said.
A political science professor from Ruaha University College, Gaudence Mpangala, said the
President did not arrive at decisions that were awaited by many in the country. By saying that
the escrow monies belong to IPTL, the President blew the whole thing away and that is very
wrong, he said.
International Financial Reporting Standards#
Name Issued
IFRS 1 First-time Adoption of International Financial Reporting Standards 2008*
IFRS 2 Share-based Payment 2004
IFRS 3 Business Combinations
IFRS 4 Insurance Contracts
2008*
2004
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
IFRS 6 Exploration for and Evaluation of Mineral Assets
2004
2004
IFRS 7 Financial Instruments: Disclosures
2005
IFRS 8 Operating Segments 2006
IFRS 9 Financial Instruments 2014*
IFRS 10
Consolidated Financial Statements
IFRS 11
Joint Arrangements
IFRS 12
Disclosure of Interests in Other Entities
IFRS 13
Fair Value Measurement
IFRS 14
Regulatory Deferral Accounts2014
IFRS 15
Revenue from Contracts with Customers
2011
IAS 1 Presentation of Financial Statements 2007*
2005*
IAS 3 Consolidated Financial Statements
2011
2011
International Accounting Standards# Name Issued
IAS 2 Inventories
2011
2014
Superseded in 1989 by IAS 27 and IAS 28 1976
IAS 4 Depreciation Accounting
Withdrawn in 1999
IAS 5 Information to Be Disclosed in Financial Statements
Superseded by IAS 1 effective 1 July 1998 1976
IAS 6 Accounting Responses to Changing Prices
Superseded by IAS 15, which was withdrawn December 2003
IAS 7 Statement of Cash Flows
1992
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 2003
IAS 9 Accounting for Research and Development Activities
Superseded by IAS 38 effective 1 July 1999
IAS 10 Events After the Reporting Period
IAS 11 Construction Contracts
2003
Will be superseded by IFRS 15 as of 1 January 2017
1993
IAS 12 Income Taxes 1996*
IAS 13 Presentation of Current Assets and Current Liabilities
Superseded by IAS 1 effective 1 July 1998
IAS 14 Segment Reporting
Superseded by IFRS 8 effective 1 January 2009
1997
IAS 15 Information Reflecting the Effects of Changing Prices
Withdrawn December 2003 2003
IAS 16 Property, Plant and Equipment
2003*
IAS 17 Leases 2003*
IAS 18 Revenue
Will be superseded by IFRS 15 as of 1 January 2017
1993*
IAS 19 Employee Benefits (1998)
Superseded by IAS 19 (2011) effective 1 January 2013
IAS 19 Employee Benefits (2011)
1998
2011*
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
IAS 21 The Effects of Changes in Foreign Exchange Rates 2003*
IAS 22 Business Combinations
Superseded by IFRS 3 effective 31 March 2004
IAS 23 Borrowing Costs
1998*
2007*
IAS 24 Related Party Disclosures
2009*
IAS 25 Accounting for Investments
Superseded by IAS 39 and IAS 40 effective 2001
IAS 26 Accounting and Reporting by Retirement Benefit Plans
IAS 27 Separate Financial Statements (2011)2011
IAS 27 Consolidated and Separate Financial Statements
1987
1983
Superseded by IFRS 10, IFRS 12 and IAS 27 (2011) effective 1 January 2013
2003
IAS 28 Investments in Associates and Joint Ventures (2011) 2011
IAS 28 Investments in Associates
Superseded by IAS 28 (2011) and IFRS 12 effective 1 January 2013
IAS 29 Financial Reporting in Hyperinflationary Economies
2003
1989
IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions
Superseded by IFRS 7 effective 1 January 2007
1990
IAS 31 Interests In Joint Ventures
Superseded by IFRS 11 and IFRS 12 effective 1 January 2013
IAS 32 Financial Instruments: Presentation 2003*
IAS 33 Earnings Per Share
2003*
IAS 34 Interim Financial Reporting 1998
IAS 35 Discontinuing Operations
2003*
Superseded by IFRS 5 effective 1 January 2005
1998
IAS 36 Impairment of Assets 2004*
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
1998
2004*
IAS 39 Financial Instruments: Recognition and Measurement
Superseded by IFRS 9 effective 1 January 2018 where IFRS 9 is applied
2003*
IAS 40 Investment Property 2003*
IAS 41 Agriculture
2001
IFRIC Interpretations#
Name Issued
IFRIC 1
Changes in Existing Decommissioning, Restoration and Similar Liabilities 2004
IFRIC 2
Members' Shares in Co-operative Entities and Similar Instruments 2004
IFRIC 3
Emission Rights
Withdrawn June 2005 2004
IFRIC 4
Determining Whether an Arrangement Contains a Lease
2004
IFRIC 5
Rights to Interests arising from Decommissioning, Restoration and Environmental
Rehabilitation Funds 2004
IFRIC 6
Liabilities Arising from Participating in a Specific Market - Waste Electrical and
Electronic Equipment 2005
IFRIC 7
Applying the Restatement Approach under IAS 29 Financial Reporting in
Hyperinflationary Economies 2005
IFRIC 8
Scope of IFRS 2
Withdrawn effective 1 January 2010 2006
IFRIC 9
Reassessment of Embedded Derivatives
IFRIC 10
Interim Financial Reporting and Impairment 2006
IFRIC 11
IFRS 2: Group and Treasury Share Transactions
Withdrawn effective 1 January 2010 2006
IFRIC 12
Service Concession Arrangements
IFRIC 13
Customer Loyalty Programmes
2006
2006
Will be superseded by IFRS 15 as of 1 January 2017
IFRIC 14
2007
IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements
and their Interaction 2007
IFRIC 15
Agreements for the Construction of Real Estate
Will be superseded by IFRS 15 as of 1 January 2017
2008
IFRIC 16
Hedges of a Net Investment in a Foreign Operation 2008
IFRIC 17
Distributions of Non-cash Assets to Owners 2008
IFRIC 18
Transfers of Assets from Customers
Will be superseded by IFRS 15 as of 1 January 2017
2009
IFRIC 19
Extinguishing Financial Liabilities with Equity Instruments 2009
IFRIC 20
Stripping Costs in the Production Phase of a Surface Mine 2011
IFRIC 21
Levies 2013
SIC Interpretations# Name Issued
SIC-1 Consistency Different Cost Formulas for Inventories
Superseded
1997
SIC-2 Consistency Capitalisation of Borrowing Costs
Superseded
1997
SIC-3 Elimination of Unrealised Profits and Losses on Transactions with Associates
Superseded
1997
SIC-5 Classification of Financial Instruments - Contingent Settlement Provisions
Superseded
1998
SIC-6 Costs of Modifying Existing Software
Superseded
1998
SIC-7 Introduction of the Euro
1998
SIC-8 First-Time Application of IASs as the Primary Basis of Accounting
Superseded
1998
SIC-9 Business Combinations Classification either as Acquisitions or Unitings of Interests
Superseded
1998
SIC-10 Government Assistance No Specific Relation to Operating Activities
1998
SIC-11 Foreign Exchange Capitalisation of Losses Resulting from Severe Currency
Devaluations
Superseded
1998
SIC-12 Consolidation Special Purpose Entities
Superseded by IFRS 10 and IFRS 12 effective 1 January 2013
1998
SIC-13 Jointly Controlled Entities Non-Monetary Contributions by Venturers
Superseded by IFRS 11 and IFRS 12, effective for annual periods beginning on or after 1
January 2013 1998
SIC-14 Property, Plant and Equipment Compensation for the Impairment or Loss of Items
Superseded
1998
SIC-15 Operating Leases Incentives
1999
SIC-16 Share Capital Reacquired Own Equity Instruments (Treasury Shares)
Superseded
1999
SIC-17 Equity Costs of an Equity Transaction
Superseded
2000
SIC-18 Consistency Alternative Methods
Superseded
2000
SIC-19 Reporting Currency Measurement and Presentation of Financial Statements under IAS
21 and IAS 29
Superseded
2000
SIC-20 Equity Accounting Method Recognition of Losses
Superseded
2000
SIC-21 Income Taxes Recovery of Revalued Non-Depreciable Assets
Superseded by, and incorporated into, IAS 12 by amendments made by Deferred Tax: Recovery
of Underlying Assets, effective for annual periods beginning on or after 1 January 2012
2000
SIC-22 Business Combinations Subsequent Adjustment of Fair Values and Goodwill Initially
Reported
Superseded
2000
SIC-23 Property, Plant and Equipment Major Inspection or Overhaul Costs
Superseded
2000
SIC-24 Earnings Per Share Financial Instruments and Other Contracts that May Be Settled in
Shares
Superseded
2000
SIC-25 Income Taxes Changes in the Tax Status of an Enterprise or its Shareholders
SIC-27 Evaluating the Substance of Transactions in the Legal Form of a Lease
2000
SIC-28 Business Combinations 'Date of Exchange' and Fair Value of Equity Instruments
2000
Superseded
2001
SIC-29 Disclosure Service Concession Arrangements
2001
SIC-30 Reporting Currency Translation from Measurement Currency to Presentation Currency
Superseded
2001
SIC-31 Revenue Barter Transactions Involving Advertising Services
Will be superseded by IFRS 15 as of 1 January 2017
SIC-32 Intangible Assets Web Site Costs
2001
2001
SIC-33 Consolidation and Equity Method Potential Voting Rights and Allocation of Ownership
Interests
Superseded
2001
Other pronouncementsName Issued
Conceptual Framework for Financial Statements 2010
2010
Preface to International Financial Reporting Standards
2002*
IFRS for Small and Medium Sized Entities 2009
IFRS Practice Statement Management Commentary 2010
Note
The above tables list the most recent version (or versions if a pronouncement has not yet been
superseded) of each pronouncement and the date that revisions was originally issued. Where a
pronouncement has been reissued with the same or a different name, the date indicated in the
above tables is the date the revised pronouncement was reissued (these are indicated with an
asterisk (*) in the tables). The majority of the pronouncements have also been amended through
IASB or IFRS Interpretations Committee projects, for consequential amendments arising on the
issue of other pronouncements, the annual improvements process, and other factors. Our page for
each pronouncement has a full history of the pronouncement, its development, amendments and
other information.
