Tanzanian Prime Minister Edward Lowassa, Energy Minister Nazir Karamagi, and East African Cooperation Minister Idrissa Msabaha have resigned amid implications that they were involved in an energy deal scandal with an electricity company from the United States.
The charges stem from a deal with a US firm, Richmond Development Company, contracted to deliver generators to provide 100 megawatts of electricity daily to the country at a fee of $140,000 per day. However, the company’s failure to deliver upon its obligations came to light when it did not provide emergency power during a drought year and caused a power crisis in 2006 when exceedingly low dam water levels led to massive power cuts.
A parliamentary inquiry launched in November found that the generators had not been delivered on time and when they did arrive, they did not work. Lowassa is on the hot seat because he reportedly extended the company’s contract despite its negligence. Another report has it that the inquiry revelead that Richmond did not exist in the United States leaving the government wondering who was pocketing the $140,000 a day.
Lowassa says that he has not been given a chance to respond to allegations regarding the contract to the Richmond Development Company. This is the second time in Lowassa’s career that he has resigned in the face of corruption allegations.