By Kazungu Samuel and Charles Lwanga

Banks operating accounts of five companies named in the theft of Sh51 million from the Kilifi county government bank account have spoken out, telling the county assembly’s committee investigating the scam that they transferred the funds to their clients after the companies produced required documents for payment.

Representatives of Consolidated Bank, Diamond Trust Bank, Jamii Bora Bank and Equity Bank told the committee that after asking their clients to provide supporting documents for the huge sums of money they were receiving from the Kilifi county government, they produced several, including Letters of Notification of Award of tender, Local Purchase Orders (LPOs) and invoices, signed by the County Secretary Owen Baya.

Speaker Jimmy Kahindi who chairs the assembly oversight committee said the documents will be checked for authenticity.

Central Bank and Integrated Financial Management Information System (Ifmis) officials who had also been summoned and did not attend are expected before the team on Friday December 9, he added.

STOLEN THROUGH IFMIS

Sh51 million was stolen through Ifmis in a collusion of a cartel believed to comprise county officials and outsiders.

Governor Amason Kingi has suspended 10 officers whose passwords are said to have been used in the theft.

Hilda Gituro, a DTB bank representative said their client, Leadership Edge Associate Ltd, had an opening balance of Sh1,054 on October 2, 2016, a day before they received a sum of Sh7.8 million payments from the Kilifi County Government.

“The client had informed us at the time of opening the account that he was expecting large sums of money for a business he had undertaken,” said Ms Gituro.

She added that when the money was wired to the account on October 3 they asked their client to bring supporting documents.

“When we asked for the documents to support such a big transaction, the client brought to us a Letter of Notification of a tender award and an invoice dully signed by the county secretary Owen Baya.

“We did not suspect any fraud since this money had been paid by the county government and the supporting documents were also from the county government,” she added.

Asked by the speaker to reveal the content of the invoice, Ms Gituro said the company indicated that the payment was as a result of training the company had undertaken for county staff.

SH300 ACCOUNT BALANCE

She said that Leadership Edge Associate made huge withdrawals both in cash and M-Pesa transactions and by the time they received a money recall order from the Central Bank on October 27 the account balance was only Sh300.

“We received a money recall order from the Central Bank who said that the money was paid in error to the client. At that time, the client had withdrawn the account to a balance of Sh300. The account is now frozen,” said Ms Gituro.

Edward Nthuli, a Consolidated Bank representative, said the bank received Sh7.1 million for Makegra Supplies Ltd, with the remitter being the Kilifi County government on October 3, 2016.

“When we asked for supporting documents, our client gave us a copy of a tender document to supply building materials, signed by the Kilifi County secretary Owen Baya, indicating that the payment was for the supply of building materials. On October 7, 2016, we again received Sh3.2 million from the Central Bank, with the remitter still being the Kilifi County government,” he told the MCAs.

Mr Nthuli said they were concerned about the nature of the transactions and decided to call the county, through contacts that were written on the tender documents, but they (telephone numbers) could not go through.

“We then telephoned the county secretary but the line was not going through. We wanted to know the authenticity of the documents the client had presented to the bank. We emailed him through the official county email address which had been placed on the document, on October 7, 2016,” said Mr Nthuli.

He said that four days later, they received a reply to their email sent through a Kilifi county Gmail account with an attachment. It was written by Francisca Dhahabu on behalf of the County secretary dismissing the documents as fake and saying they should be ignored.

Makegra Supplies Ltd had already transferred Sh4 million from Consolidated Bank account to other bank accounts.

THROUGH M-PESA AND CASH WITHDRAWALS

Speaker Kahindi’s committee heard that most transactions worth Sh6 million were done between October 2 and October 7, through M-Pesa and cash withdrawals in the bank.

Mr Nthuli said their other client, Kilingi Investment Company Limited, received Sh3.2 million from the county government on October 3, 2016.

He added that they received a recall order from the Central Bank on October 27, 2016 indicating that the money had been paid to their clients erroneously and should be immediately reverted to the Central Bank.

“Makegra Supplies had a balance of Sh333, 286 which we remitted back to the Central Bank,” said Mr Nthuli.

John Njenga from Equity Bank, said their client Daima One Enterprises, received a payment of Sh7.2 from the Central Bank with the remitter being the Kilifi County Government October 3, 2016.

“The client upon request to give us supporting documents for the transactions, gave us a notification of a tender award and an LPO, signed by the county secretary. Then there were huge cash withdrawals until on October, 7, 2016, we received a recall order from the Central Bank and we reverted Sh4.1 million to CBK,” he said.

SUPPORTING DOCUMENTS

Benedict Wamtere from Jamii Bora Bank said that Zohali Supplies Ltd’s bank account continued receiving money even after the account was frozen. On October 4, Zohali Supplies account received Sh5.3 million and supporting documents were an LPO indicating that they had offered training services for county staff at Mnarani Hotel and refurbished county assembly and the governor’s offices including installation of CCTV cameras.

On October 7, Zohali again received Sh3.8 million from the county government but presented an invoice from the Ministry of Devolution in Nairobi.

He was put to task to explain why they approved a letter indicating that Zohali Supplies Ltd offered services to the Ministry of Devolution in Nairobi yet money was paid by Kilifi County. He said it was an error and that he would avail the right document.

“Sh3.7 million was returned to CBK after an order that the money had been erroneously sent from Kilifi central account to Zohali bank account,” he added.

The committee was told that Zohali received Sh5.3 million from the Kilifi county government after presenting an LPO to show that they had offered the training services

By Louis Kolumbia and Julius Mathias

Dar es Salaam — The Vietnamese embassy has asked the government to allow traders to transport cashew nuts by road to Dar es Salaam Port to enable them meet their obligations to customers and lenders.

The appeal came after a Vietnamese company, Starnuts, failed to transport 3,700 tonnes of cashew nuts because the vessels used to ferry the commodity to Dar es Salaam were reportedly booked until January.

The Mtwara regional administration has banned the transportation of cashew nuts by road for various reasons, including ensuring that traders pay all the requisite taxes and levies.

Traders buying cashew nuts in Mtwara Region are required to transport the commodity by sea through Mtwara Port.

The First Secretary in the Vietnamese embassy in Dar es Salaam, Mr Ton Ho Tri Dzung, told The Citizen that Starnuts had planned to purchase 22,000 tonnes of cashew nuts this season, but this would not be possible because of the ban on transportation by road.

He appealed for the ban to be lifted to enable Vietnamese buyers to transport cashew nuts by road to Dar es Salaam for onward shipment to Vietnam.

Mr Ton said there was sabotage in the allocation of vessels to traders, with shipping firms colluding with some businesspeople to deny others service.

“This is not acceptable in a free market economy. Transporters should serve clients equally and dirty games should be discouraged,” he said.

But Mtwara Regional Commissioner Halima Dendego poured cold water on hopes that the road transport ban would be lifted following an outcry by local and foreign cashew nut buyers.

“They (buyers) should forget about transporting cashew nuts by road. They should also stop telling the government what to do, and should instead comply with procedures and regulations,” she said.

Starnuts country manager Omega Mmari said ships had been leaving Mtwara Port half empty, contrary to claims that they were fully laden with cashew nuts purchased by other buyers.

“We believe that our company is being sabotaged by other cashew nut buyers who see us as a threat,” he said.

But Mr Krishna Kumar, manager of PIL Tanzania Line, which transports by sea to Dar es Salaam the bulk of cashew nuts bought in Mtwara, refuted claims of sabotage, saying shipping services were limited because of the port’s low capacity.

“Each of our vessels has a capacity of 1,300 containers, but we only load between 700 and 800 containers because the harbour’s depth doesn’t allow the ships to be loaded to their maximum capacity.

“That’s why other shipping lines avoid Mtwara Port because there are a lot of challenges that delay ships compared with other ports where it takes a maximum of three days for a vessel to be fully loaded, he said.

Mr Kumar said new customers were the worst affected because they were not aware of the port’s low capacity and fail to plan accordingly.

Reached for comment, acting Mtwara port manager Stella Katondo dismissed claims that the harbour was shallow.

“The current depth is 9.5 metres, which is enough for large ships to dock and be loaded to capacity,” she said. The number of shipping lines using the port has increased to four in recent months. Apart from PIL, other firms operating out of the port are African Shipping, Maersk and CMA-CGM.

Ms Katondo added that two more shipping lines would start to use the port in the near future

She said the problem was that almost all traders were insisting on using PIL despite other shipping firms being available, adding that the port does not load cashew nuts on ships without having proof of the required taxes having been paid.

“Buyers need to understand that there are procedures that must be followed such as paying taxes in advance and ensuring that the relevant documents are in order before handing over their cargo to the port for loading onto ships.”

Ms Katondo added that the port was prepared to handle 150,000 tonnes of cashew nuts this season, up from last year’s 112,000 tonnes.

The year 2016 is coming to an end with an air of great uncertainty. At the global level, many are left with questions over Brexit and the US elections. At home, many of our economies are under a great deal of stress and the news is awash with depressed global commodity prices, the threat of climate change and limited access to agricultural finance. It is no secret that growing at the more modest growth rates that are currently being forecasted for the continent is not enough to sustain the Africa rising narrative we experienced in previous years.

Yet, at the ECA, we remain convinced that the time we spent pushing for structural transformation since the 2008 global and financial crisis was not in vain. We are, after all, forging ahead with big ideas, such as reinvigorating the role of the state and the development planning imperative, enhancing inter-African trade and building on the opportunities presented by the Continental Free Trade Area, whose negotiations are well underway. The underbelly of these big, well researched ideas and policy recommendations is what is disconcerting. The continued dissatisfaction with jobless growth continues to bite. It remains at the heart of social unrest and in some ways, contributes to the disbelief in the promise of big policy ideas. And so, tangible results, such as getting our young people off the streets and into earning decent incomes and thus, securing their future, are what we at the Economic Commission for Africa continue to push and advocate for. Tangible results remain at the heart of deep structural transformation.

To turn the tide on jobless growth and curb inequality, we see a light at the end of the tunnel and it lies in one of the most promising of sectors – agriculture – which underpins the theme of this year’s African Economic Conference – Feeding Africa: Towards Agro-Allied Industrialization for Inclusive Growth.  This annual gathering of African researchers from December 5-7 Conference in Abuja, is a rallying call to move decisively, away from the status quo of an agricultural sector which relies on obsolete technology and instead, move towards agribusiness and linkage development across sectors; increase agricultural productivity, and close the gap of the food and growth deficit which currently characterizes the sector.  Beneath the cloud of the uncertainty of our times, we cannot tackle the ever present and looming challenges of transformation, by doing business as usual. We need an open mind; and a strategy of championing and developing agro-allied industries that promote more robust, inclusive, green growth may be a viable alternative to reversing the dampened growth trends we face today.

At the ECA, we are greatly encouraged by Nigeria, which, despite its current economic challenges, is leading the way in agricultural transformation. We therefore, cannot overemphasize that failure to unburden ourselves from traditional ways of dealing with agriculture will entrench our vulnerability to threats, such as climate change.

While the odds may seem stack against Africa, the only way, is to look up and wake up to the potential for agro-allied industrialization and mainstream it into national development strategies and ensure coherence among all national policies. The focus must be, as always, long-term structural transformation. With more emphasis on the linkages between agricultural and industrial strategies, we can move steadily along a gradual approach to industrialization as well as upgrade along value chains.

Ultimately, the road to the fulfilment of the decades-old Abuja treaty, which is also the venue for this year’s African Economic Conference, will go beyond the expectation of improving intra-African trade. It is about a smart approach towards the transformation of the continent and tapping into the unlimited opportunities found in global agricultural and food markets.

The global and national economic waves, tides and tensions will continue to persist but we can still forge ahead as a Continent, by deepening transformation and embarking on an agro-alliance oriented industrialization.

The author, Abdalla Hamdok is the Acting Executive Secretary of the Economic Commission for Africa, headquartered in Addis Ababa. More: www.uneca.org

By Louis Kolumbia and Deogratius

Dar es Salaam — Problems facing the Tanzania Zambia Railway Authority (Tazara) yesterday dominated talks between President John Magufuli and his Zambian counterpart, Edgar Lungu, with the two countries seeking a permanent solution to Tazara’s long-standing woes.

In a joint press briefing after the talks, President Magufuli said the two countries had agreed that the Tazara management setup needed to be changed to allow people from outside Tanzania and Zambia to be considered for senior managerial positions in the firm.

This is contrary to the current arrangement where the managing director comes from Zambia with Tanzania providing the deputy.

“We have agreed that the attorney generals of the two countries will meet as soon as possible to review the legal framework of the Tazara Act of 1975 to accommodate changes in the management setup,” he said.

Apart from efforts to revamp Tazara, other issues which featured in the talks included reviving Tanzania Zambia Mafuta (Tazama) Pipelines Limited and finalising a one-stop border centre (OSBC) in Tunduma.

Also discussed were plans to connect Tanzania, Zambia and Kenya in a common electricity grid, relations of Southern African Development Community (Sadc) member countries with the international community as well as economic development in the two countries.

However, the two heads of state did not say whether they were building a foundation for China to take over management and operation roles in Tazara as reported earlier in the year.

It was reported that the three countries (Tanzania, Zambia and China) were preparing to reduce the size of the Tazara workforce and that Tanzania and Zambia would be required to review domestic laws to provide preferential provisions in the running of Tazara with a view to attracting more private players.

But yesterday, President Magufuli said their decision was aimed at restoring Tazara’s ability to serve its customers. He said in 1976 Tazara was able to transport five million tonnes of cargo annually, but that figure had dropped to 500,000 last year before plummeting further to 128,000 tonnes this year.

“Members of the management attribute issues of capital to inefficiency of Tazara, but actually the management is the one to blame,” he said.

He said while Zambia imported 1.9 million tonnes of goods this year, only a tiny fraction was transported by Tazara, with importers opting to use road transport despite being slower.

The two presidents also resolved to reduce the number of checkpoints along the Tanzania-Zambia highway to four to cut the time it takes to transport goods between the two countries. Tanzania has committed to finalising the construction of the OSBC on its side of the Tunduma border.

“The move will reduce delays and corruption at the border,” said President Magufuli.

He added that it had also been agreed to evaluate the performance of Tazama Pipelines and embark on sweeping reforms that would raise its transportation capacity from the current 600,000 tonnes per annum to the 1.1 million tonnes.

The two heads of state also witnessed the signing of an agreement on diplomatic consultations.

The agreement was signed by foreign affairs ministers, Dr Augustine Mahiga of Tanzania and Mr Harry Kalaba of Zambia.

Two agreements on transportation, immigration and prisons were not signed to pave the way for further consultations.

For his part, President Lungu pledged continuous cooperation between Tanzania and Zambia that would boost economic and diplomatic relations between the two countries.

Earlier in the day, Mr Lungu said there were plans to extend the Tazara railway to Malawi and southern Zambia.

He made the revelation when he visited the Tazara head office in the city where he also received a freight train carrying copper from Zambia and flagged off another train carrying cargo to Ndola, Zambia.

He was accompanied by Dr Mahiga and the Deputy Minister of Works, Transport and Communication, Mr Edwin Ngonyani.

“I have come to breathe a new lease of life into Tazara and make it work for Zambia and Tanzania…the aim is to see that the railway is commercially used,” President Lungu said.

The Zambian head of state also visited the Tazama Pipelines facility in Kigamboni. He was accompanied by the Minister of Energy and Minerals, Prof Sospeter Muhongo, and Dr Mahiga.

Mr Lungu is expected to conclude his visit today by touring Dar es Salaam Port before leaving for home at around 11.30am.

EDITORIAL

Tanzania and Zambia have agreed on strategies that would make the two country’s joint projects work for the benefit of their people. Agreements signed during the three-day state visit by Zambian President Edgar Lungu aimed at revitalising Tanzania-Zambia Railway Authority (Tazara) as well as Tanzania Zambia Mafuta (Tazama) projects.

In his speech at the State House President, John Magufuli noted the sorry state of the two companies, saying to a large extent, they were failed by politics. It is encouraging that at last, our top leaders have seen the reason why such projects, which used to be vibrant, failed when similar projects elsewhere were prospering.

It is hard to understand why, at a time when the transportation sector has become a vibrant and key component to economic development, Tazara be on the verge of total collapse. It is incredible why Tazama should be struggling while oil is deemed a key ingredient in economic development.

This experience serves as a warning to us that in future, we shouldn’t allow politics to mess us up.

The truth of the matter is that politicians had been allowed to reign supreme in the running of economic projects. Now instead of treating them as they are-economic blueprints-politicians used the opportunity to make decisions which benefits them or their political hangers-on at the expense of the projects.

We fully support the plans to revitalise these projects and establish more similar plans. If Tanzania believes that building a standard gauge railway will stimulate its economy, then we expect Tazara, which is of the standard gauge variety, should do wonders.

And then, Zambia’s assertion that it needs a gas pipeline connecting it to Tanzania, is a testimony that Tazama’s relevance will continue.

Our assertion there is: Zambia and Tanzania should continue with their economic partnerships but the concerned should ensure politics isn’t allowed the two entities again.

IT’S RAINING, BEWARE CHOLERA!

The rain season is here and before us is the start of another farming season. Since some 70 per cent of Tanzania’s working population engages in agriculture, many households will be out farming. Agriculture requires practitioners to be of sound health. When a household member falls ill, it affects family’s agricultural productivity.

Often, the rain season comes with its challenges, one of which is the outbreak of waterborne diseases like cholera. This is an infection of the small intestine by some strains of the bacterium Vibrio cholerae.

The chief symptoms include vomiting, muscle cramps and diarrhoea. The disease leads to severe dehydration with loss of energy. The attack may last for a few hours up to five days after exposure.

Prevention of cholera involves improved sanitation and access to clean water. Efforts to control and prevent the disease should be hinged on these two conditions.

It is unbecoming for leaders and key players to take action only after people have been killed by the disease. That is a clear sign of slackness in leadership.

There is a need to have in place proactive measures to prevent the disease from messing up people and economic productivity. That should include campaigns to educate the people on how to check the scourge.

With proper plans, we can stop cholera outbreaks.

By James Ngunjiri

Total Kenya is the biggest domestic market share loser for the three months to September. Shell and Kenol Kobil, shed a combined 2.8 per cent market share.

The Petroleum Institute of East Africa say that Total lost 1.3 per cent to close the period at 16.7 per cent and retain its position as the country’s top oil marketer.

Vivo, which trades as Shell, is ranked second having shed 1.2 per cent to have a 16.6 per cent share while Kenol Kobil shed the least share (0.3 per cent), ending the period with 15.2 per cent.

Gulf Energy, a small oil marketer which has been in the country for a decade, was the only oil firm among the top seven companies to gain market share in the period under review, underlining a shift in the industry.

The oil company has grown rapidly over the years and now runs fuel stations in most major towns in the country. It also has a presence in Uganda.

“Kenya fuel consumption increased by approximately 20 per cent up to September this year compared to the same period last year,” said Wanjiku Manyara, petroleum institute’s general manager.

Kenya’s top-three oil market rivals are competing on customer convenience and wider distribution to increase sales. Kenol Kobil is also running a promotion and discounts on their loyalty cards. A wider footprint is critical in driving sales of products such as diesel, petroleum and kerosene to motorists and households.

The bigger oil marketers have more retail outlets than their smaller rivals.

State price controls have tamed price wars among the fuel companies, making market presence and strategic locations key factors in winning customers who don’t have to seek bargains at various outlets.

Bassey Udo

Nigeria, Iran and Libya got special concessions Wednesday, as the Organisation of Petroleum Exporting Countries, OPEC, reached the much-sought consensus to cut oil production by 1.2 million barrels per day, effective January 1, 2017.

The cut, which is the first after eight previous attempts since 2008, is considered a massive boost to efforts by the global oil cartel to shore up oil prices and end a record glut that has paralyzed economies.

It is also seen as a major achievement by OPEC’s Secretary General, Nigeria’s Mohammad Barkindo, whose diplomatic shuttles since assumption of office in August, led to the “Algiers Accord” that sought to stabilize the market and boost price.

OPEC President, Mohammed Al-Sada, who announced the resolution on Wednesday at the end of the body’s 171st meeting in Vienna, Austria, said the adjustment in output would be shared among all members of the group, to bring their ceiling to 52.5 million barrels per day.

The cut is subject to a review after six months, with a possible rollover for another six months on the recommendation of a ministerial monitoring committee of three OPEC counties, namely Kuwait, Venezuela and Algeria. The countries are to closely monitor the implementation and compliance with the agreement.

Mr. Al-Sada, who is also Qatar’s Minister of Energy and Industry, said the latest output cut was subject to another 600,000 barrels expected to be cut by non-OPEC oil producers who have agreed to support the effort to re-balance the market and restore stability.

The OPEC president said the Russian Federation has agreed to take responsibility for about 300,000 barrels per day out of the non-OPEC volume, with final decision expected during a December 9 meeting in Dorha.

The 1.2 million BPD cut followed an agreement by members to implement a deal proposed during the last September meeting in Algiers to reduce crude oil production by at least one million barrels by November.

During the September resolution, three countries, namely Nigeria, Iran and Libya were proposed as candidates for exemptions in consideration of their peculiar circumstances.

Nigeria was recommended for exemption to enable it recover from the negative impact of incessant attacks on its oil facilities by armed militant groups in the Niger Delta region, which resulted in a massive cut in its production and exports capacities.

Libya was equally proposed for special consideration on similar grounds, following series of attacks on its oil facilities by terrorists groups operating in that region in recent months.

But, Iran was to be excluded to allow the country settle down and recover, after serving years of U.S.-imposed sanctions, including restrictions on its oil production and exports.

Although details of each country’s output adjustments were yet to be released by the OPEC secretariat, Mr. Al-Sada said Saudi Arabia, the group’s biggest producer, agreed to the biggest slice of about 486,000 BPD.

At the opening session, OPEC President, Mohammed Al-Sada, said the current situation in the global oil market required urgency in “bringing forward the re-balancing of the fundamentals and returning sustainable stability to the market.”

He said members considered all factors and processes in arriving at the decision, which he said would ultimately help revive the industry and boost reinvestment efforts to raise oil production capacity to secure the mid to long term security of supply

“We knew re-balancing the market will need courageous decisions from OPEC, with the support of some key non-OPEC countries. We agreed to share the reduction among OPEC countries, taking into consideration that some countries needed to be given special considerations because of their peculiar circumstances,” he explained.

The monitoring committee is expected to submit a report to the next meeting of the group scheduled for May 25, 2017.

“This a major step forward to re-balance the market and reduce the stock overhang, will be fair to both consumers and suppliers and ensure that the economy is moved to a healthier level of inflation and growth,” Mr. Al-Sada said.

By Melody David

Dar es Salaam — The work towards the construction of a crude oil pipeline between Uganda and Tanzania is officially on, with project the developers inviting reputable contractors to undertake a social and resettlement plan.

To be known as East African Crude Oil Pipeline, the project – which will transport Ugandan crude to Tanga Port in Tanzania – will be built jointly by a French oil giant Total SA, the UK-based Tullow Oil and and Chinese state-owned oil company Cnooc Ltd.

Total E&P Uganda – an oil and gas exploration company which is a subsidiary of Total SA – said in a statement yesterday that it wants reputable and experienced contractors to express their interests in carrying out the social and resettlement planning services for the Tanzania part of the East African Crude Oil Pipe line (EACOP) project that is scheduled to start in January 2017.

“Resettlement planning is scheduled to commence in the first quarter of 2017 and shall comply with Tanzania legal and regulatory requirements and international best practices,” the statement reads.

According to the statement, the social and resettlement planning services will include preparatory work for land access. It also encompasses resettlement and livelihood restoration planning for temporary and permanent facilities as well as field surveys that will help the contractor to ascertain the costs of the project on the socioeconomic, asset and cadastral amenities to be covered by the affected areas.

Among other issues, the contractor will be required to engage and consult with stakeholders in the areas to be affected. Uganda has over 6.5 billion barrels of proven oil reserves of which about 2.2 billion barrels are recoverable. The estimated cost of the project is $4 billion. It will create approximately 15 ,000 constructing jobs and between 1, 000 – 2 ,000 permanent jobs.

In Tanzania, the project comprises 1110 km of 24 buried isolated pipeline plus various above ground facilities and a marine storage terminal with export facilities near Tanga Port.

By Ben Ezeamalu

An executive of the Trade Union Congress stirred up a hornet’s nest during a Presidential Advisory Committee Against Corruption meeting in Lagos, Tuesday, when he suggested the workers’ union be incorporated into the committee.

Simeso Amachree, the Acting Secretary of the TUC, said the Committee’s task would be more effective if they include one member each from his union, the Nigerian Labour Congress, and the civil society, adding that organised labour has the structures to enable their work reach millions of Nigerians.

Another unionist, Adekola Adetomiwa of the Senior Staff Association of Nigerian Universities, added that for labour leaders to key into the anti-corruption fight, they “need to be carried along.”

The suggestions irked members of the anti-corruption committee.

Femi Odekunle rejected the suggestion, describing “people parading themselves as labour leaders” as “corrupt and compromised.”

Mr. Odekunle, a professor of criminology, said instead of pushing to be members of the anti-corruption advisory committee, the labour union should use their power to fight corruption.

“What PACAC (Presidential Advisory Committee Against Corruption) cannot do, what EFCC cannot do, what Police cannot do, Labour can do it,” Mr. Odekunle said.

“Korea for the past one month, from 10,000 to 30,000 to about 2 million now, they are insisting that they will not agree with what the president had done, they are not fighting, they are just… .

“Now if you don’t like any particular policy, whether it’s forex, whether it’s subsidy, whether it’s education, why don’t you mobilise your people and be able to persevere for one week, two weeks, one month until you achieve your objectives? Instead of doing two days, then go to the back door, go and meet at the Villa and then you give up because your leaders have agreed.

“I want to emphasise this matter, your responsibility, you must attend to it and you have not been doing so.”

Etannibi Alemika, another member of the Committee, accused the union members of grandstanding in a national issue that ought to be taken serious.

“We are talking about Nigeria’s problem of corruption, you are posturing yourself as if PACAC has a problem in their advisory role and you have to help them solve it,” said Mr. Alemika, a professor of criminology and sociology of law.

“I don’t think that is the issue. the issue is simply, what can we do in our respective sectors to solve the problem of corruption? That is the main issue here. not that you have the strategy to solve the problem and you are not incorporated.”

Mr. Amachree responded by saying he “took exception” to the claims that labour leaders are corrupt.

“I ask you, whenever strikes have been called nationwide, how many times did you come out? Most likely you sat at home, so easy to stay there and say ‘do this do this,'” he told the Committee members.

Mr. Amachree said in the 2012 fuel subsidy protests where Labour leaders were accused of collecting money from government, the protests were actually ended because the union “put the national interest first.”

“In 2012, we were fully determined to continue, but at some point in time it appeared that things were being hijacked,” he said.

“How do you explain, for instance, you have tens of thousands of people gathering at a particular spot in Lagos every day consecutively. And being fed food, drinks, water. It didn’t come from us, where did the money come from? Somebody, some persons were sponsoring. We are not stupid.

“And then you have this man from the Niger Delta, if you remove him there’ll be chaos.”

Itse Sagay, the committee chairman, said people don’t need to belong to PACAC to fight corruption.

“PACAC is not made up of representatives of any groups or sectors,” said Mr. Sagay, a law professor.

“Fight corruption from your own organisation. And if we invite you, participate, you don’t have to say unless you are a member of PACAC. How many members will PACAC have if it invites people from every sector? I think that’s a very negative attitude.”

President Muhammadu Buhari appointed the six member Presidential Advisory Committee Against Corruption in August last year. The Committee’s work is supported by $5 million fund donated by the MacArthur Foundation, Ford Foundation, and Open Society Foundation.

“We have our faults but you have to help us, and one way you can help us is to have us there,” said Mr. Amachree, during the committee’s interaction with the media and civil society organisations on Tuesday.

The Guptas, who part-own Optimum Coal Mine through Tegeta Resources and Energy with President Jacob Zuma’s son Duduzane, have yet to pay the R2.176bn fine imposed on it by Eskom.

That is according to a written Parliamentary response by Public Enterprises Minister Lynne Brown on Wednesday.

Democratic Alliance MP James Lorimer had asked Brown for details of Eskom’s fine, which it had imposed on Optimum Colliery for the delivery of substandard coal.

Brown said the amount accrued as at August 2015 was R2 176 530 611.99. She said that “this penalty has not been paid by Optimum to date” and that “no agreement has been reached”.

“The matter is still the subject of arbitration, no agreement has been reached,” she said. Brown said fines (or penalties) have been “levied in all instances where coal quality is at the bottom end of the expected range. A coal penalty regime is a standard condition of Eskom contracts.”For Eskom’s long-term coal suppliers, excluding Optimum Colliery which supplies Hendrina Power Station, a total of R90m in penalties was levied for the period 01 April 2015 to 30 September 2016.”

The Guptas inherited the fine when they bought the mine from Glencore this year.

“We’re going to fight it, based on the evidence we’ve been shown now. So it’s going to be a wonderful fight between us and Eskom,” former Oakbay Investments CEO Nazeem Howa told Carte Blanche in June.

Eskom said this year that it has “vigorously pursued this claim with the previous owners of Optimum, registered its rights with the business rescue practitioners and also indicated its intention with the new owners of Optimum, being Tegeta, that Eskom will be pursuing this claim”.

Explaining the “battle between Glencore and Eskom”, Howa said Glencore had prepared a legal case for Tegeta to use against Eskom.

“Glencore has provided us with a wonderful legal case they’ve prepared,” he said.

When Eskom refused to budge on signing a new contract for Optimum to supply Hendrina Power Station with coal until the R2bn fine was paid in 2015, Glencore was forced to place Optimum into business rescue in August 2015.

“Glencore disputed it (the fine and) wanted to go to arbitration and then business rescue happened,” Howa told Carte Blance. “In terms of arbitration that business rescue was put on hold.”

The business rescue team told Howa that the penalty – if anything – should be significantly lower. “Glencore has engaged some of the best and finest specialists to look at this matter,” said Howa.

“I don’t think we knew enough about the penalty at that stage (when they decided to buy Optimum),” he said. “First you get to a kind of agreement and then you do a due diligence.

“In the due diligence, we came across it, so we knew it was there. Let’s see how the arbitration goes. That’s the nature of business. We’ll take our chances on that one.”