Gas deals deny govt Tanzanian govt Sh291bn

Dar es Salaam. A Parliamentary Committee tasked with investigating and making recommendations on natural gas sub-sector has revealed shocking shortcomings after going through 11 gas exploration contracts.

These shortcomings--the committee’s report read yesterday by chairman Dustan Kitandula shows have denied the government a total of Sh291 billion.

Some shortcomings pointed out include the presence of sub-sections in the contracts that allow investors to open bank accounts overseas as well as giving room to settlement of disputes by external bodies.

The report said opening of accounts overseas led to illegal transfer of money hence denying the government accurate revenue. “Some contracts also permitted the investors to recover taxes they paid earlier.

For example, out of Sh109 billion that Songas has paid in tax, Sh57 billion has already been paid back, hence making no significance in tax collection,” Mr Kitandula said in a live broadcasted event.