mwanakijiji
09-20-2009, 11:54 PM
Behind Dr Rashidi`s exit
By Staff writer (The Guardian)
20th September 2009
Dr. Idris Rashidi.
When Dr. Idris Rashidi took over as the new Managing Director of the troubled Tanesco in November 2006, little did he know about the tough mission that lay ahead of him.
As governor of the Central Bank, his reputation was gravely damaged, especially over the unsound manner in which he managed the country?s financial nerve-centre during the second and third phase regimes.
Very few Tanzanians therefore believed that he was the right man to manage the power utility firm which was on the brink of collapse.
After three years, the top man is finally quitting, leaving behind him a tainted legacy of serious corruption allegations, resignation threats and a firm on the cliff-edge of collapse due to the heavy costs of operation, largely attributed to capacity charges.
On the surface, Dr. Rashidi?s exit is linked with expiry of his three-year contract as well as age limit, but going by hints dropped by inside sources, more reasons for the move lie beneath the surface.
He was up-beat upon becoming Tanesco CEO, promising to rescue the cash-strapped power firm, but in his last two years, he was a disappointed man as his name was tainted, being linked to mismanagement as well as the ongoing radar deal investigation, among others.
Dr Rashidi leaves a number of questions unanswered in connection with his sudden departure though it has already been stated that his contract expires on November .
Questions over his sudden departure still linger in people?s minds, considering the fact it is the first time in Tanzania?s history for the post of a chief executive officer of a public parastatal to be advertised in the media, though speculation was rife in Dar es Salaam and elsewhere in the country that something was terribly amiss in Tanesco.
?I still doubt when we will be told the truth,? remarked an excited worker of the power utility company, adding sorrowfully: ?Even if you want to marry another wife, the mere announcement of your intention to the incumbent will frustrate her from doing anything developmental. If she had plans to improve your lives, she will let it go.?
The chairman of the Tanesco branch of the Tanzania Union of Industrial and Commercial Workers ( TUICO), Abdul Mkama, says he was similarly caught unawares, because much as he was aware that the contract of the boss was nearing expiry, he didn?t expect the managing director?s post to be advertised in newspapers.
Described as a man of principles, one who keeps to his word, and a person who stands firm to what he believes in, the outgoing chief of the country?s major power generating and supplying company leaves behind him a tainted legacy.
In 2007, Dr Rashidi threatened to resign in protest over political pressure against his decision to cut off the power supply line that feeds the Tanga Cement Company, in the wake of accusations that it was tampering with electricity flow and consumption monitoring equipment, slapping it with a Sh 49m/-bill.
After a series of consultative meetings with the company?s Board of Directors, however, he withdrew the resignation letter.
Early this year, Dr Rashidi found himself under severe criticism when he announced that the whole nation would be plunged into darkness if the public power utility firm failed to buy the used power turbines from the beleaguered Dowans Tanzania Limited inherited from Richmond Development Company.
Even before he quits office, today some regions like Mwanza, Arusha, Mara and Kigoma are experiencing severe power shedding although it is hard to prove whether or not the crisis is linked to shortage to power in the national grid.
In 2006 when Tanzania faced a serious crisis in electricity supply, it is pointed out that Tanesco under Dr Rashidi?s leadership refused to buy the proposal to hire Richmond Development Company to generate emergency power at the cost of Sh 172 billion but the deal was subsequently sealed through the influence of powerful politicians.
The end result was that the generators failed to arrive on time and when they did they did not work as required.
On the other side of the coin Dr Rashidi has been at the centre of controversy especially from the time when he was appointed to head the BoT as governor in 1993. His name is also linked to the $ 40 million ( Sh52 billion) military radar deal. Information from UK state that the UK?s Serious Fraud Office (SFO) is putting final touches on its investigation files.
It is alleged that two private firms controlled by Dr Rashidi and Former Attorney General Andrew Chenge are directly linked to the questionable payments associated with the radar scam. According to SFO, Chenge?s Franton Investments Comopany pocketed about $ 1.5 million (approx. Sh 2 billion) between June 1997 and April 1998 through its Baclays account in New Jersey Island.
Dr. Rashidi?s company called Langley International is linked with the $12m back-door payment to Vithlani, Chenge and others, represented 30 percent of the contract value, according to SFO.
In May 2008, SFO revealed that a payment of about $ 600,000 (approx. Sh 800 million) was paid from Franton Investments Company to another company called Langley Investments Limited, which is allegedly controlled by Dr Rashid.
In July this year the Tanesco management came under attacks in the Parliament when it was accused of spending over Sh1.4 billion on the repair of seven residential houses occupied by its directors.
Sumve MP Richard Ndassa said the staggering expenditure was approved by management without the knowledge of the board of directors.
Until now the investigation is still on to establish the truth of the allegations.
By Staff writer (The Guardian)
20th September 2009
Dr. Idris Rashidi.
When Dr. Idris Rashidi took over as the new Managing Director of the troubled Tanesco in November 2006, little did he know about the tough mission that lay ahead of him.
As governor of the Central Bank, his reputation was gravely damaged, especially over the unsound manner in which he managed the country?s financial nerve-centre during the second and third phase regimes.
Very few Tanzanians therefore believed that he was the right man to manage the power utility firm which was on the brink of collapse.
After three years, the top man is finally quitting, leaving behind him a tainted legacy of serious corruption allegations, resignation threats and a firm on the cliff-edge of collapse due to the heavy costs of operation, largely attributed to capacity charges.
On the surface, Dr. Rashidi?s exit is linked with expiry of his three-year contract as well as age limit, but going by hints dropped by inside sources, more reasons for the move lie beneath the surface.
He was up-beat upon becoming Tanesco CEO, promising to rescue the cash-strapped power firm, but in his last two years, he was a disappointed man as his name was tainted, being linked to mismanagement as well as the ongoing radar deal investigation, among others.
Dr Rashidi leaves a number of questions unanswered in connection with his sudden departure though it has already been stated that his contract expires on November .
Questions over his sudden departure still linger in people?s minds, considering the fact it is the first time in Tanzania?s history for the post of a chief executive officer of a public parastatal to be advertised in the media, though speculation was rife in Dar es Salaam and elsewhere in the country that something was terribly amiss in Tanesco.
?I still doubt when we will be told the truth,? remarked an excited worker of the power utility company, adding sorrowfully: ?Even if you want to marry another wife, the mere announcement of your intention to the incumbent will frustrate her from doing anything developmental. If she had plans to improve your lives, she will let it go.?
The chairman of the Tanesco branch of the Tanzania Union of Industrial and Commercial Workers ( TUICO), Abdul Mkama, says he was similarly caught unawares, because much as he was aware that the contract of the boss was nearing expiry, he didn?t expect the managing director?s post to be advertised in newspapers.
Described as a man of principles, one who keeps to his word, and a person who stands firm to what he believes in, the outgoing chief of the country?s major power generating and supplying company leaves behind him a tainted legacy.
In 2007, Dr Rashidi threatened to resign in protest over political pressure against his decision to cut off the power supply line that feeds the Tanga Cement Company, in the wake of accusations that it was tampering with electricity flow and consumption monitoring equipment, slapping it with a Sh 49m/-bill.
After a series of consultative meetings with the company?s Board of Directors, however, he withdrew the resignation letter.
Early this year, Dr Rashidi found himself under severe criticism when he announced that the whole nation would be plunged into darkness if the public power utility firm failed to buy the used power turbines from the beleaguered Dowans Tanzania Limited inherited from Richmond Development Company.
Even before he quits office, today some regions like Mwanza, Arusha, Mara and Kigoma are experiencing severe power shedding although it is hard to prove whether or not the crisis is linked to shortage to power in the national grid.
In 2006 when Tanzania faced a serious crisis in electricity supply, it is pointed out that Tanesco under Dr Rashidi?s leadership refused to buy the proposal to hire Richmond Development Company to generate emergency power at the cost of Sh 172 billion but the deal was subsequently sealed through the influence of powerful politicians.
The end result was that the generators failed to arrive on time and when they did they did not work as required.
On the other side of the coin Dr Rashidi has been at the centre of controversy especially from the time when he was appointed to head the BoT as governor in 1993. His name is also linked to the $ 40 million ( Sh52 billion) military radar deal. Information from UK state that the UK?s Serious Fraud Office (SFO) is putting final touches on its investigation files.
It is alleged that two private firms controlled by Dr Rashidi and Former Attorney General Andrew Chenge are directly linked to the questionable payments associated with the radar scam. According to SFO, Chenge?s Franton Investments Comopany pocketed about $ 1.5 million (approx. Sh 2 billion) between June 1997 and April 1998 through its Baclays account in New Jersey Island.
Dr. Rashidi?s company called Langley International is linked with the $12m back-door payment to Vithlani, Chenge and others, represented 30 percent of the contract value, according to SFO.
In May 2008, SFO revealed that a payment of about $ 600,000 (approx. Sh 800 million) was paid from Franton Investments Company to another company called Langley Investments Limited, which is allegedly controlled by Dr Rashid.
In July this year the Tanesco management came under attacks in the Parliament when it was accused of spending over Sh1.4 billion on the repair of seven residential houses occupied by its directors.
Sumve MP Richard Ndassa said the staggering expenditure was approved by management without the knowledge of the board of directors.
Until now the investigation is still on to establish the truth of the allegations.