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Tanzania: Ewura CCC Urges Bunge to Probe Extractive Industry


AllAfrica.com

BY FINNIGAN WA SIMBEYE

February 9, 2012

THE parliament should continue pressing for access by its members to all contracts signed between the government and private investors in the extraction of natural resources to get rid of the problems that shroud the mining sector in the country.

According to the Chairman of Energy and Water Utilities Regulatory Authority Consumer Consultative Council (EWURA-CCC), Professor Jamindu Katima, most of the problems with contracts signed between the government and private firms in the extractive industry emanate from secrecy.

These contracts are top secret which not even parliament can access easily,” said Prof Katima who is also the Principal of College of Engineering and Technology of University of Dar es Salaam.

He said all contracts in the gas subsector need to be reviewed if proved to be faulty as was the case with Pan African Energy which faces accusations of evading taxes in the tunes of billions of shillings while inflating prices of gas supplied to Tanzania Electric Supply Company (TANESCO).

Apart from Songas and Pan African Energy, others companies extracting and supplying natural gas include Canadian Wentworth Resources and French Morel & Prom which are operating at Mnazi Bay in Mtwara region.

Lawmakers should continue to press the executive so that they can access all contracts and where necessary review them,” the Nobel Laureate said. Prof Katima who is a 2009 joint Nobel Laureate argued that Songas Limited may have signed another bad contract with Tanzania Petroleum Development Corporation which needs to be reviewed as its power tariffs to Tanesco are also excessive.

The don however warned against any attempt to undo such contracts. “I do not support severing such contracts because experience has shown that it becomes twice a burden to the public,” he pointed out naming Dowans Holdings Limited as the latest example…Read more.

Nigeria: Stop Giving Contracts to Unquoted Firms -Yuguda


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Daily Trust

By Chris Agabi

November 4, 2011

LagosBauchi State governor Alhaji Isa Yuguda has called on both the federal and state governments to stop awarding contracts to large firms who are capable being listed on the Nigerian Stock Exchange (NSE) but refused to do so.

Large firms, most of them multinationals, in the telecoms, oil and gas companies, airlines, fast moving consumer goods and the construction sectors have refused to get quoted on the NSE, he observed.

Industry experts say if these firms get listed on the floor, they will help make the market robust and make its recovery easier in time of financial shock as was experienced in 2008.

Governor Yuguda spoke at a public policy forum organized by the Business Hallmark on ‘Restoring Market Confidence in an Era of Economic Uncertainties: Challenges and Prospects’ held in Lagos yesterday. He based his position on the context that quoted companies’ profits are more widespread because of the large shareholder base and by extension creates more wealth an economy than unquoted ones.

According to him, it makes more economic sense for government to support quoted companies than unquoted companies.

Besides patronising quoted companies as a prerequisite for award of government contracts, he advocated for a deliberate effort to get the companies listed on floor of the NSE such tax holidays for quoted firms.

He advised the stock exchange to introduce measures that will improve market liquidity, boost investors confidence, raise issuer confidence, and ensure investors protection to attract and retain investments.

Speaking on the challenges of the market, he said lack of sufficient liquidity, insufficient investor protection, high expectations for regulatory compliance and lack of market depth remain the biggest challenge of the market.

Governor Yuguda also tasked the NSE to bite some more as a regulator and reform internal operations.

Particularly, he said full disclosure by quoted companies must be enforced by NSE, brokerage firms be recapitalised, enforce corporate governance, and shorten the listing process.

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