Kikwete stronger after scandals: Tanzanian president Jakaya Kikwete's quick and decisive action following a spate of political scandals has burnished his image both in the continent and beyond. Report by Neil Ford

African Business, April, 2008 by Neil Ford

Tanzania's normally stable political elite has been rocked by the recent political crisis that saw veteran politician Edward Lowassa lose the post of prime minister.

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The entire cabinet has been reformed as President Jakaya Kikwete seeks to prove that his 2005 election promise to tackle corruption was not a mere campaign aspiration but a concrete pledge on his part.

While Tanzania's economic reforms over the past 15 years have boosted economic growth, the policy of outsourcing many major contracts has increased the gap between rich and poor, and also appears to have created an environment conducive to more frequent instances of corruption.

Ibrahim Msabaha, the minister for the East African Community (EAC); Nazir Karamagi, the energy and minerals minister, and Prime Minister Lowassa were all dismissed after a financial scandal came to light.

US energy firm Richmond Development was awarded a contract in early 2006 to provide 100MW of emergency power generation, as Tanzanian electricity supplies were affected by low rainfall and low water levels at the reservoirs that supply the country's main hydro schemes.

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Despite receiving more than $100,000 a day from the government, an investigation by parliament that was launched in November last year revealed that the company had failed to provide electricity before the water levels had risen and power supplies had returned to normal.

Richmond's generating equipment did not turn up on time and the state power company, Tanzania Electric Supply Company Limited (TANESCO), recommended that the company's services were no long-needed but Lowassa's office advised the government to extend the deal, despite the fact that Richmond sold its contract on to another firm, Dowans, in 2007. The panel of MPs that considered the case advised the government to prosecute those involved. The head of the investigation, CCM member of parliament, Harrison Mwakyembe, said that Richmond "lacked experience, expertise and was financially incapacitated".

Lowassa denied that he had done anything wrong. He told the bunge, or parliament: "I've thought long and hard about this issue. I've offered my resignation without any ill motive. I have done it as a sign of my responsibility and to register my disagreement with the manner in which the committee misled parliament." He has since blamed officials in the Ministry of Finance, Ministry of Energy and Minerals, and the Bank of Tanzania for persuading him to continue with the Richmond deal.

Lowassa, who remains MP for Monduli constituency, had been in the cabinet for most of the years since 1988, firstly as minister of state, then minister of lands, human settlement and development from 1993, until he campaigned to be the Chama Cha Mapinduzi (CCM) candidate in the 1995 presidential elections.

He was not given a ministerial appointment by the eventual presidential victor, Benjamin Mkapa, until 2000, when he became minister of water and livestock development. He backed Kikwete in his 2005 election bid and his dismissal does not appear to have been the result of any long-running personal clash between the two.

Total clean-out

Rather than merely replacing the dismissed ministers, Kikwete decided to dissolve his entire cabinet. Just 24 hours after sacking Lowassa, Kikwete announced that Mizengo Pinda, the minister for regional affairs, would replace him as prime minister.

The new cabinet contains 13 fewer ministers than its predecessors at 47, as the president has decided to merge several ministries including Home Affa irs with Public Safety and security, and Finance with Planning and Economic empowerment.

Among the many unexpected changes was the replacement of Zakhia Meghji with Mustafa Mukolo in the newly enlarged Finance Ministry. Foreign diplomats in Dar es Salaam have welcomed the new cabinet, saying that a more streamlined team could be more effective than its predecessor.

Women disappointed

However, the falling proportion of women with ministerial positions has dismayed some. While still a high share by African and indeed international standards at 25%, the executive director of the Tanzania Media Women's Association, Ananilea Nkya, commented: "I'm not happy, because the gains women have made in the political arena are now falling behind. We would like to see at least 30%, in line with the SADC objective."

The Southern African Development Community set 30% as a minimum target in 1997 in its declaration on gender and development. Another leading establishment figure lost his job in January, when an audit of the Central Bank of Tanzania (CBT) uncovered a series of fraudulent transactions.

The governor of the CBT, Daudi Ballali, was sacked after Ernst & Young discovered that more than $120m had been paid in bogus transactions via the CBT's external payment arrears account to 22 real and fictitious local companies.

He has been replaced by his deputy, Benno Ndulu. Kikwete's official spokesperson, Philemon Luhanjo, commented: "The president has been deeply angered and disappointed with what has happened."