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THE ruling Chama Cha Mapinduzi (CCM) now supports government's position not to pay Dowans Holdings SA (Costa Rica) and Dowans Tanzania Ltd 65 million US dollars (about 95bn/-) for breach of contract.
Responding to reporters' questions on Wednesday, CCM Ideology and Publicity Secretary, Mr Nape Nnauye, said the government was not keen to pay the sum hence the decision to appeal in court.
"The government had the party's blessings when it decided to start investigations into Richmond Company and take action against those involved," he explained.
The International Chamber of Commerce (ICC) in November 2010 awarded Dowans Holding SA (Costa Rica) and Dowans Tanzania Ltd 65.8 million US dollars for wrongful termination of a power generation contract in 2008.
Tanzania Electric Supply Company Limited (Tanesco) filed an objection in the High Court against registration of the award on grounds that the ICC arbitration was unfairly conducted, as the tribunal failed to consider part of evidence they had submitted.
Tanesco also argued that awarding 94bn/- to Dowans Ltd would go against public interest. The objection was thrown out by the High Court.
It also ordered Tanesco to pay the cost of running the case incurred by Dowans. As a result, a number of Civil Society Organizations (SOs) have recently threatened to hold a nationwide protest against the government paying the award to Dowans.
Mr Nnauye said CCM does not believe in mass demonstrations as the best way to address the issue and suggested that the public should wait for the government to take legal action.
"This is a legal issue, staging a countrywide protest will not help,"he said.
Tanesco was yesterday expected to file an application for leave of appeal against the court's ruling in the Dowans saga.
Following a parliamentary inquiry findings that there were serious irregularities in the tendering process that led to the deal being awarded to Dowans, TANESCO terminated its contract with the company.
Meanwhile, Mr Nnauye said a small group of CCM members were trying to sabotage changes taking place within the party.
He said that the same group tried to sabotage the recent by-elections in Igunga so that the party could lose.
"The party knows and follows closely everything that's happening, there is nothing we do not know, including efforts to sabotage the national chairman, President Jakaya Kikwete," he added without going into details.
Its really not interesting to see the government pay that huge sum of money while there are a lot of Tanzanians who lives in marginalized environment and have nothing at all. This is our country, and the money is absolutely generated from our pocket, let us fight for this becoz i believe the money will go direct to their own pocket.
Wake up Tanzania...!
