Tag: GreatLakesNews

  • East African Energy Boom at Risk

    {{As giant oil and gas discoveries have some of the world’s biggest energy firms jostling for space in East Africa, the fate of one gas producer offers them a cautionary tale.}}

    After investing $160 million in Tanzania, an offshoot of Canada’s Orca Exploration (ORCb.V) is close to paralysis because of unpaid bills and quarrels with authorities over terms.

    Its story highlights some of the obstacles facing much bigger players as they negotiate with governments that are learning the game as they go along and are keen to both bring investment quickly and make sure they do not get cheated long term.

    The speed with which East African countries adapt could determine whether their region lives up to its reputation as the latest great oil and gas frontier, with big implications for global energy flows as well as regional economies.

    On the face of it, relations between Orca’s PanAfrican Tanzania and authorities in the East African country should work to everyone’s benefit.

    Its gas generates half Tanzania’s electricity, saving it an estimated $1 billion a year on oil imports. When it started producing gas in 2004, it was hailed locally as just the sort of investment one of the world’s poorest countries needed.

    But things started to unravel in 2011 when a government audit led a parliamentary committee to accuse PanAfrican of cheating it out of $20m in revenues. Meanwhile, state power firm TANESCO, its biggest customer, stopped paying for gas.

    Threats that went as far as criminal charges were quietly dropped when it turned out the missing funds were due to an accounting error, but then a new discrepancy was announced.

    Although the parliamentary committee behind the accusations was disbanded and itself accused of corruption, the government said it still wanted to negotiate with PanAfrican on how gas revenue was shared, among other things.

    Last month, Orca told shareholders the company still hadn’t reached an agreement with the country’s Minister of Energy and Mines and that it might need extra funding as things drag on.

    One of the government negotiators, Gabriel Bujulu, principal petroleum engineer at the Tanzania Petroleum Development Corporation said simply: “It is premature to expect that a solution will not be attained.”

    NV

  • Kenya Police Clash with Nairobi Residents Over Insecurity

    {{Activities were paralysed in Nairobi’s Kiamaiko area in Huruma on Sunday, as residents held a demonstration to protest against rising insecurity.}}

    The demonstration followed the killing of a businessman on Sunday morning as he went to the mosque for dawn prayers.

    Anti-riot police used teargas to disperse the rowdy crowd.

    Led by the chairman of the Kiamaiko slaughterhouse, Wario Agan, the angry residents claimed that over 10 people have been killed in the last two weeks and over 20 others injured during robberies by criminals.

    “There are gangs here whose work is to shoot and kill innocent people.

    They don’t want to work at all. If you start a business, they come and rob you. Five people have died this week alone and three are still admitted to the Kenyatta National Hospital,” said Agan.

    They demanded that the area police chief must take action against the criminals adding that most have been occasionally arrested and later released under suspicious circumstances.

    “We want Kiamaiko to have peace and enough security just like other areas in this country. There are a lot of businesses in this area that are being affected,” said Liban Jillo, who is one of the residents.

    “They attack people very early in the morning or late in the evening. If you don’t have money they stab you with a knife or shoot you.”

    Adan Mochude is one of the victims. He said on November 9, 2011 a gang of four men attacked him while he was coming from work.

    He said the thugs asked him for money and even after giving them the little he had, they went on to beat him and stabbed him twice on the stomach.

    “You people are seeing us demonstrating here and you think it’s all for nothing. Look at my stomach,” he said taking off his shirt to show where he was stabbed and almost bled to death.

    “I was later taken to Kenyatta (hospital) unconscious… only God saved me. I have eight children, and I don’t know how they would have survived without me.”

    The residents want the arrest of suspected criminals and more investigations done to curb crime in the area.

    The demonstration comes a day after 50 houses were burnt in the nearby Mathare slum in gang rivalry, leaving many residents homeless.

  • Kibaki Asked to Reject party-hopping Extension

    {{The International Centre for Policy and Conflict (ICPC) on Friday urged President Mwai Kibaki to reject an amendment moved by MPs to allow them to party-hop after the January 4 deadline.}}

    ICPC Executive Director Ndung’u Wainaina said the amendment by lawmakers waters down electoral laws put in place to instill discipline in political parties.

    “What they did is an exercise in futility. The president should not assent to that bill to make sure that due processes are being followed,” he asserted.

    He said the president should recognise laws put in place to ensure sanity in political parties as well as to observe democratically controlled politics by refusing to sign the amendment into law.

    Wainaina further told the MPs that although the country was in a transition period because of the General Election due in two months, they should not break laws and procedures to suit their interests.

    He also expressed fears that party hopping will spur emotions during elections likely to result to violence like the one witnessed in 2008 which was blamed on among other factors deep political rivalry.

    “It is actually during the transition period when the laws must be followed and adhered to the letter. Parliament cannot use unconstitutional methods of amending acts. What Parliament did yesterday is to create a chaotic scenario. It can be the first springboard to chaos towards elections,” he warned.

    MPs on Thursday passed an amendment to allow themselves extra days to defect from parties that took them to Parliament.

    It was the second time MPs extended time for them to move from parties that sponsored them to Parliament.

    The first time was on October 17 when they moved it to January 4.

    They have now added 15 days to that deadline.

    Deputy Prime Minister Uhuru Kenyatta and his Jubilee Counterpart Eldoret North MP William Ruto became the first MPs to officially decamp from their parties to become members of new outfits.

    Ruto informed the Registrar of Political Parties that he had left the Orange Democratic Movement for the United Republican Party whereas Kenyatta left KANU to join The National Alliance (TNA) party.

    Ruto said he would quit as MP for Eldoret North at any time after consulting his constituents, while Kenyatta announced he would declare his next move in due course.

    Ideally, an MP who ditches the party that sponsored him to Parliament is supposed to quit and seek re-election.

  • EAC debt grows as $1.3bn silently siphoned out

    {{Countries in the East African Community saw a combined $1.33 billion moved out of the region through illicit financial transactions over the past decade, a new report shows, raising questions over the efficiency of regulations meant to curb illegal capital outflows.}}

    Uganda leads the pack in the EAC, ranking 66th out of 143 economies surveyed, with illicit financial transactions costing it at least $680 million over the 10-year period.

    According to the Global Financial Integrity report, Tanzania, which was ranked 86, lost $333 million over the same period. Rwanda was ranked at 106, having lost $158 million. Kenya lost an estimated $112 million while Burundi, the region’s smallest economy, lost $49 million.

    EAC countries have been grappling with capital flight, with individuals setting up companies and accounts in tax havens.

    The estimates by GFI are based on parameters such as smuggling, cross-border movements of cash and trade mis-pricing in invoices exchanged between importers and exporters.
    Tax havens

    The researchers said they lacked reliable figures, meaning the illicit flows from emerging markets and developing countries could be much higher.

    Most of the billions stashed away in foreign bank accounts by influential businessmen and powerful politicians are suspected to be proceeds from defence and security-related contracts and payment of fake debts.

    “Astronomical sums of dirty money flow out of the developing world into offshore tax havens and developed country banks,” GFI director Raymond Baker said.

    “Whatever strengthened financial regulations may be in place or may be contemplated, cannot yet be seen to have an effect on the continued passage of funds out of poorer countries, through the global shadow financial system, and ultimately into richer Western economies,” said Mr Baker in the report titled “Illicit Financial Flows from Developing Countries.”

    In June, the Swiss National Bank (SNB), the central bank of Switzerland, said EAC countries had at least $1.3 billion stashed in the country. Kenya topped the list with $857 million followed by Tanzania ($178 million), Uganda ($159 million), Rwanda ($29.7 million) and Burundi ($16.7 million).

    Global pressure has been rising on Switzerland to compel its banks to share information about their clients with foreign governments. It is suspected that foreigners holding illicit wealth in Swiss banks may be moving their funds out for fear of being exposed due to growing scrutiny.

    The news about growing illicit outflows comes as the EAC countries battle budget deficits that have seen them go on a borrowing spree.

  • Malawi Bans Maize Exports to Tanzania

    {{Malawian President Joyce Banda has banned the export of maize to neighbouring country, including Tanzania.}}

    Ms Banda has also ordered tighter security along the borders to curb rampant smuggling of the grain. The move follows an acute shortage of maize, which is a staple in the southern African country.

    President Banda announced the ban on Monday after visiting the country’s main grain reserves run by the National Food Reserve Agency (NFRA).

    About two million people face starvation in Malawi after adverse weather affected maize production.

    Police have in recent months seized hundreds of tonnes of maize along the country’s borders. Authorities believe some of the maize was destined for Tanzania and Kenya.

    President Banda said she had been informed that most markets had no maize, adding that the export and smuggling of the commodity had caused an “artificial” shortage in the country.

    “I have therefore with immediate effect ordered that police and Agriculture ministry to check and seal our borders against these illegal exports,” she said.

    President Banda said it made no sense that Malawi was experiencing a food shortage when the country was implementing a farm input subsidy programme that was aimed at enabling poor people to achieve food security.

    Malawi police recently arrested four Tanzanians and a Malawian as they were allegedly trying to smuggle out about 200 bags of maize.

    However, a local leader in Karonga, the district bordering Tanzania, has accused Malawian police of profiteering from maize smuggling, and said the Malawi Defence Forces should be deployed to man the borders.

  • DRC Govt to Treat Children Injured in War

    {{The Congolese Minister of Health, Felix Kabange Numbi said, Sunday, Dec. 23, that the government would help seven children seriously injured in clashes between M23 rebels and Congolese troops last November.}}

    He noted, “The damage [fighting] is greater than what we saw,” acknowledged the minister, saying he met children aged 5, 8 and 12 seriously injured and some of them would be in danger.

    “We also saw children whose future is compromised: a 6 year old child has both his legs amputated. We need to give these children the chance to grow, “says Kabange Numbi.

    About nine tons of drugs were delivered to North Kivu.

  • Uganda is Now Landmine Free

    Uganda government has declared that the East African country is now free of Landmines.

    The Announcement was made by the country’s State Minister for Relief and Disaster Preparedness, Musa Ecweru.

    “Government was making arrangements to rehabilitate and compensate victims of landmines planted during insurgencies,” Ecweru said.

    “Following the landmine clearing exercise that was started in 2006 by the Uganda Mine Action Unit, 46 mine areas in northern Uganda, West Nile and Ruwenzori sub-regions were cleared and are now free of mines,”Mr Ecweru said.

    He said 1,617, 156 square metres of area has already been released and is free for cultivation.

    Uganda signed the Anti-Personnel Mine Ban Convention in 1997 through which it was supposed to clear all landmines accumulated during the years of conflict between the army and insurgents in northern and western Uganda.

  • M23-DRC talks Pushed to January 2013

    {{Peace talks between DRC government and M23 rebels have been extended upto January 4th 2013.}}

    This follows a statement issued on Friday by the office of the facilitator of the dialogue, the talks were being pushed to January due to the constraints that may arise as a result of the absence of support staff who will be on holiday over this festive season.

    The statement noted that the process cannot go on without their availability and in consultation with both sides; the talks were adjourned to January.

    Uganda’s defence Minister Dr Crispus Kiyonga is the facilitator of the talks that have been on-going for the last two weeks.

  • Zimbabwe Deputy Minister Moyo Dies

    {{Agriculture, Mechanisation and Irrigation Development deputy minister and MDC-T legislator for Nketa, Seiso Moyo, has died.}}

    Moyo who was also the MDC-T’s secretary for elections in the national executive died a few minutes after being admitted to the Avenues Clinic in Harare Friday morning.

    MDC-T spokesperson Douglas Mwonzora confirmed Deputy Minister Moyo’s death and said it could have been caused by a suspected heart failure.

    “This morning (yesterday) he phoned his colleagues in Government and was taken to the Avenues Clinic but did not last long. We suspect that he died of a heart problem or failure,” he said.

    Mwonzora said as a party they were saddened by the loss of Moyo whom he described as level headed.

    “At the time of his death he was preparing the party for primary elections and confirmations to start in January in preparation for the elections to be held next year,” he said.

    Mwonzora said funeral arrangements would be announced in due course since his family was in Bulawayo.

    Moyo is survived by his wife Sinini and five children. Moyo was sworn in as deputy minister in October last year.

  • Kenya Pardons 6,700 Prisoners

    {{About 6,700 prisoners in Kenya have been pardoned in a move aimed at easing congestion in the East African state.}}

    President Mwai kibaki Friday signed the release order.

    The released include first time offenders serving nine months or less and minor offenders serving six months or less and of good conduct.

    According to a statement from Predents office, consideration was made following recommendation to ease congestion of prisoners in the penal institutions.

    “In exercise of the powers conferred upon me by Section 27 of the old Constitution read together with Article 133 of the new Constitution and the provisions relating to suspension of provisions of the new Constitution under the Sixth Schedule, Clause 2(1)(c) do hereby grant to the said… remission of the unexpired portion of their sentences,” read the PPS statement.

    The President pardoned 2,850 petty offenders, 2,586 first time offenders, 1,227 ordinary prisoners of good conduct with a balance sentence of nine months or less to serve, and 37 prisoners aged 65 years and confirmed terminally ill.

    It is estimated that the cost of food for prisoners alone per year is more than Sh1.7 billion. This amount excludes the medical, clothing, staff and accommodation expenses.

    Kenya prison population is estimated at about 49,000 more than double its official capacity of 22,000.

    According to the International Centre for Prison Studies, as at year 2011 South Africa tops African countries in the total prison population followed by Ethiopia, Egypt, Rwanda, Morocco, Algeria and Nigeria in that order, with Kenya coming eighth.