Power scandal rocks Tanzanian government ahead of elections

Issue 292 - 15 Jan 2015 | 2 minute read

Several high-profile government figures have been dismissed over a new power sector corruption scandal set to overshadow the contest for the leadership of incumbent party Chama Cha Mapinduzi (CCM) and ensure corruption remains top of the agenda in the run-up to October’s elections. The scandal centres on payments to Pan Africa Power Solutions Tanzania, owned by controversial businessman Harbinder Singh Sethi, from TSh200bn ($124m) held in an escrow account at the central bank. Sethi claimed to have purchased a 70% stake in Independent Power Tanzania Limited (IPTL), a 100MW gas-fired power plant, from Malaysia’s Mechmar Corporation, which is now in administration.

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