Kabwe says ready to face IPTL court case, spill the beans

Dar es Salaam. Businessman Harbinder Sethi has filed a civil lawsuit against ACT-Wazalendo’s retired party leader Zitto Kabwe, accusing him of defamation and publishing false, harmful, and damaging information about him.

The lawsuit, filed in the High Court of Tanzania, stems from a post Zitto published on his X page (formerly Twitter), in which he elaborated on the Independent Power Tanzania Limited (IPTL) scandal, referencing a report by the Controller and Auditor General (CAG), Charles Kichere.

According to court summons, Mr Kabwe is required to appear before the High Court on June 12, 2025, when case number 8810 of 2025 will be mentioned before a judge.

Speaking to journalists yesterday, Mr Kabwe confirmed that he had received the court summons. He said that the matter presents an opportunity for him to shed light on everything previously hidden about the IPTL scandal.

“I received the summons on April 29, this year. I have been sued by Sethi, who claims that I defamed and disrespected him. He is asking the court to award him billions in damages,” Mr Kabwe said.

He emphasised that he intends to use the case to publicly reveal the truth about the long-standing IPTL controversy that implicated Sethi.

“I do not deny writing and publishing the words I am being accused of. I posted them on X, and they reflect the true and factual nature of the IPTL saga,” said Mr Kabwe.

Although he said the post was made in good faith, he acknowledged that since legal action has been taken, he is prepared to meet Sethi in court and present all relevant facts.

At the height of the IPTL saga, Mr Kabwe was a Member of Parliament (MP) for Kigoma South and chairperson of the Public Accounts Committee (PAC). In that capacity, he led investigations into controversial payments from the Escrow account at the Bank of Tanzania to IPTL.

The committee’s report exposed procedural irregularities and allegations of corruption in the transactions, and its findings sparked national debate after being presented in Parliament.

The scandal centred on a controversial power purchase agreement between the government of Tanzania, through the Tanzania Electric Supply Company (Tanesco), and IPTL. Signed in 1995, the agreement faced intense scrutiny over high electricity tariffs and allegations of corruption in its execution.

Tanesco agreed to buy electricity from IPTL at a rate that was widely viewed as exorbitant compared to other energy sources.

A special Escrow account was established at the Bank of Tanzania for IPTL payments while the tariff dispute remained unresolved. Eventually, over Sh300 billion was controversially withdrawn from the account and paid to IPTL.

Ownership of IPTL changed hands multiple times with Sethi’s company, Pan African Power Solutions Tanzania Limited (PAP), acquiring shares in a manner that raised concerns.