Tanzanian Prime Minister Resigns Due to Corruption Scandal

Here is another example of government procurement processes gone bad ("gone wild"?).

The Tanzanian Prime Minister and other government officials are accused of meddling in standard procurement processes to give a contract to a Texas company for backup electrical supply systems that cost the government $140,000 per day.

Lesson learned: Public officials can get canned if they try to influence standard procurement procedures.
vj

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from
http://asia.news.yahoo.com/080207/afp/080207084633int.html

Thursday February 7, 4:52 PM
Tanzanian PM tenders resignation over corruption accusations

DAR ES-SALAAM (AFP) - Tanzania's Prime Minister Edward Lowassa told parliament Thursday he had tendered his resignation to the president after being implicated in a corruption scandal over an energy deal.

"Because I have been linked to this scandal, I have decided to write to the president asking to be relieved of my duties," the premier told lawmakers, during a session of the Dodoma-based parliament broadcast live on television.

The speaker adjourned the session and explained he was awaiting a decision by President Jakaya Kikwete on Lowassa's resignation letter.

The premier's decision came after a report was submitted to parliament over a deal signed between the government and the Texas-based firm Richmond for emergency power supply.

According to a probe into the contract, the prime minister as well as two other government ministers and several other officials allegedly meddled in the tender to favour the US company.

The emergency power supply deal aims at providing electricity to the east African nation in case of drought.

According to the report, the deal contravened laws and rules on procurement and costs the country 140,000 dollars a day.