Reasons behind DP World deal being under wraps

The signing involved the Minister for Transport, Prof Makame Mbarawa, and the Tanzania Ports Authority (TPA) director general, Mr Plasduce Mbossa, on the part of Tanzania, and the Group Chairman and CEO of DP World, Sultan Ahmed Bin Sulayem, on the other side.

President Samia Suluhu Hassan witnessed the signing of the Host Government Agreement (HGA), the lease and operation of berths 4–7, and the joint operation of berths 0–3 between TPA and DP World for commercial and governmental activities at Chamwino State House in Dodoma.

While some social media commentators insist the document should have been made public for scrutiny, legal experts say making the document public would amount to a breach of the confidentiality clause in commercial contracts or agreements.

The President of Tanganyika Law Society (TLS), Mr Harold Sungusia, said whether or not to make a contract public depends on the type of agreement, noting that commercial deals are not made public due to confidentiality clauses that limit the number of people who can access the information.

“That is why even Members of Parliament have been complaining about being denied access to some contracts that the government has entered into with private firms,” he said.

The TPA director general, Mr Plasduce Mbossa, said bringing the document into the open would allow competitors for both TPA and DP World to get access to vital business information.

“There is a clause that emphasises the confidentiality of the agreement. Breaching that clause may lead to termination of the contract or agreement. You may also be handed a hefty fine for going against the confidentiality clause,” he said.

Besides, he said, if the contents of the contract or agreement are accessed by the competitor, they will be used for further negotiations by others. “They will say why did you want to give us this while you gave the best to company X,” said Mr Mbossa, noting that those seeking access to the document can request it, provided they follow the right procedure.

In his remarks, the Attorney General, Dr Eliezer Feleshi, said it was the responsibility of the parliament to monitor the actions and activities of the executive branch of government to ensure transparency and accountability.

“When the time is right, the relevant Parliamentary committee or the entire Parliament will be informed,” he told Mwananchi newspaper yesterday.

Some analysts say, going by what the government announced on Sunday, the signed agreements were massive improvements from what some thought they could be during the debate on the Intergovernmental Agreement between Tanzania and the Emirate of Dubai that preceded the signing event in Dodoma on Sunday.

The ACT-Wazalendo Party leader, Mr Zitto Kabwe, said it was a good thing that the government took on board the need to form a joint venture firm to manage some berths, just like what his party had proposed.

“This is great since, as we build our own capacity, we can increase our shareholding. Previously, these local ownerships had been taken by a few individuals with political connections. Our suggestion of public ownership of the local shares is a big plus. We were the only political party that suggested it, and the government took our advice,” he said.