Mh. Zitto Kabwe
Ama kweli huko Tanzania siasa zinachemka. Habari kwenye ippmedia.com zinasema kuwa Mbunge wa Chadema, Zitto Kabwe, amesimamishwa Ubunge baada ya mzozo bungeni.
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From ippmedia.com
Kabwe suspended 2007-08-15 08:52:39
By Pascal Shao, Dodoma
A day of heated debate triggered by a private motion ended dramatically here yesterday with the mover, MP Zitto Kabwe, being suspended after the House voted against him by acclamation. CCM legislator Mudhihir Mudhihir moved a motion to have outspoken Kabwe suspended, saying the MP should be penalised for humiliating Energy and Minerals minister Nazir Karamagi.
Mudhihir suggested that Kabwe be suspended for cheating the House when he accused the minister Karamagi in Parliament on July 17, 2007 of lying in regard to a controversial mining contract which the minister had signed in London.
MPs who spoke in support of Kabwe`s suspension were John Malecela (CCM-Mtera), Adam Malima (CCM-Mkuranga), and Stella Manyenga (CCM-Special Seats). The North-Kigoma (Chadema) MP had earlier kept the minister on his toes throughout the prolonged House session, after he had tabled a private motion requiring the formation of a committee to investigate the mining contract.
Karamagi and a commercial miner signed the Buzwagi Mine deal in February this year, triggering a controversy that has touched off debate among legislators. The latest deal comes at a time when the government is reviewing mining contracts, policies and laws to create what has been termed a win-win situation.
The proposed Parliamentary committee, according to Kabwe, should be tasked to investigate the review of mining contracts signed between the government and investors. He said the on-going mining review process was marred by irregularities and questioned the removal of a provision on Income Tax of 1973 on the 15 per cent capitation allowance on unredeemed qualifying capital expenditure without Parliamentary approval. Kabwe's motion sparked off heated debate, and the House was split into two camps.
The legislator questioned the fast-tracking approach used in signing the contract between the government and Barrick Gold, who own the Buzwagi project. `What basis did the minister use to justify the signing? Why did he say that the contract he signed in London was perfect and had no shortcomings?` he asked. Karamagi told the House on June 16 this year that Buzwagi was simply a marginal mine and that Barrick Gold owned only three mines ? Bulyanhulu, North Mara Gold Mines and Pangea Minerals Limited (Tulawaka) - and according to his statement, Buzwagi was not a mine.
If Buzwagi is not a mine but a project, why did the minister sign the new MDA? According to my understanding, Buzwagi is the second Barrick Gold investment. They have invested $400m on the mine,` he said. `If Buzwagi is a minor mine, why is it that its investment capital has surpassed that of Tulawaka and North Mara?` he queried.
According to the MP, minister Karamagi signed the contract even before the National Environmental Management Council had conducted an environment impact assessment. Kabwe said he had personally reviewed the Finance Act 2002 and also found that in Section 8 of the Income Tax Act of 1973 on the 15 per cent capitation allowance on unredeemed, the Mining Act was not mentioned. The then Finance Minister, Basil Mramba, had once mentioned the ambiguity on the section.
My question is: Why are the mining companies that signed contracts with the government since July 1, 2001 yet to start paying income tax?` questioned Kabwe. All these controversial questions can clearly be disclosed by the proposed parliamentary probe committee ? which can unearth violations of law and corruption elements in these contracts,` he said. `It is a national issue and should be not taken as a party affair.
I believe that fellow legislators will make a decision for the benefit of our country,`Kabwe said. Responding, Minister for Energy and Minerals Nazir Karamagi said Buzwagi was still a project and would qualify to be a mine after being issued with a mining licence, which would be issued after completion of the construction of premises and commencement of mining activities. `Buzwagi is a marginal mine, whose life span is short.
Without using the existing opportunity, especially the price of gold, its investment would not be profitable,` said the minister. `The ministry evaluated the project and found that investors were developing it into a mine. Comparing investments made on Bulyanhulu, which was set up in the 1990s, with the Buzwagi mine that is expected to be constructed in 2008 is not proper, considering the current inflation rate and value of money,` said the minister.
He said Parliament had made amendments to the Income Tax of 1973 and the House had agreed to delete the 15 per cent additional capital allowance on unredeemed qualifying capital expenditure without considering mining contracts the government had signed with mining companies under the Mining Act of 1998, which was instituted before the changes were made. Karamagi said the meaning of the amendments was that the 15 per cent additional capital allowance on unredeemed qualifying capital expenditure would be refunded to the mining companies that signed contracts with the government before July 1, 2001.
`This is reason the mines that signed contract with the government before the July 1, 2001 continued with the 15 per cent additional capital allowance on unredeemed qualifying capital expenditure even after the removal of that section,` he said.
SOURCE: Guardian