Tanzanian Association Oslo

Kikwete tells public leaders to:

CHOOSE:

Politics or private business?

-States far-reaching plans to tighten existing leadership code of ethics

THISDAY REPORTER
Dar es Salaam

PRESIDENT Jakaya Kikwete has announced plans for sweeping reforms to the existing leadership ethics legislation that would make it illegal for cabinet ministers and members of parliament to be involved in politics and at the same time hold supervisory positions in private companies doing business with the government.

In a surprise move, the president declared yesterday that the planned review of the Public Leadership Code of Ethics Act of 1995 would in effect compel cabinet ministers and MPs to make a choice between politics and private business.

Currently, there are no distinct laws in the country which guard against such conflict of interest, with politicians often known to also hold key positions in private companies that do business with the government.

In his end-of-the-month address to the nation last night, Mr Kikwete said: ’’I would like to talk about political leaders such as ministers and MPs being also directly involved in business dealings. There is evidence of conflict of interest among some of them.’’

Without naming any names, he continued: ’’Even where there is no clear evidence, there is a general perception that such public leaders are using their administrative positions for personal gain. This leads members of the public to lose confidence in and question the integrity of our leaders.’’

He described the planned move for reforms to the current ethics laws as one of national interest, ’’which should help a lot in restoring the public’s respect of their leaders.’’

He said the matter had been discussed during the CCM central committee in Dodoma on Tuesday this week, ’’and we reached a common understanding.’’

According to Mr Kikwete, even capitalist countries of the West have clearly defined boundaries that separate national public leadership duties from private business undertakings.

’’Such countries have a system that requires anyone with business interests to stop engaging in those businesses once he or she becomes a member of parliament or cabinet minister, and place those business interests in the hands of trustees until such a time as they cease to be public leaders.’’

’’It is my intention to introduce such a system to our country. Our leaders must now choose between doing business or becoming an MP or cabinet minister. Therefore, I plan to start a process for the review of the Public Leadership Code of Ethics Act so that it incorporates such a system,’’ the president explained in his national address broadcast on radio and television.

The announcement by President Kikwete is in sharp contrast to the stance taken by his predecessor, Benjamin Mkapa, who it has been established was actively engaged in various private business activities during his tenure at State House stretching from 1995 to 2005.

It is understood that Mkapa and the then first lady, Anna Mkapa, established a private company (ANBEM Limited) in 1999, with themselves registered as sole directors, shareholders and ’entrepreneurs’, and the company’s listed physical address located within the official State House walls in Dar es Salaam.

In 2002, ANBEM Ltd went on to obtain hefty loans totalling over 750m/- from both the National Bank of Commerce Limited and CRDB Bank. Although timely repaid, the NBC loan to ANBEM Ltd was granted at a time of heated national debate over the privatization process surrounding the once state-owned bank - which the government had sold off to South Africa´s ABSA Group for a reported total price of just 15bn/- for 70 per cent majority shares in 2000.

It has also been established that in December 2004, Mkapa teamed up with his then senior cabinet minister, Daniel Yona, to form another private company, Tanpower Resources Limited, which was then given ownership of the previously state-run Kiwira Coal Mine after another dubiously ’fast-tracked’ privatisation process.

All this happened when Mkapa was still serving as president and Yona as minister for energy and minerals, respectively.

The reports of the ex-president’s apparent business dealings have triggered much social commentary and debate, especially with regard to the ethical considerations therein of his actions.

While one school of thought argues that he did not break any laws, another contends that the actions - being mainly geared at ensuring personal gain - could well be interpreted as blatant abuse of office.

Issues of possible conflict of interest and undue influence, on the part of a sitting president endeavouring to balance official responsibilities and private business affairs, have inevitably been brought up in the Mkapa debate. However, the ex-president has maintained a steadfast silence, preferring to respond when pressed with the simple refrain that he is now a ’retired politician’ and would not like to be dragged into public debates.