THE ROLE OF GOOD GOVERNANCE TOWARDS TRANSFORMING TANZANIA

THE ROLE OF GOOD GOVERNANCE TOWARDS TRANSFORMING TANZANIA TO A MIDDLE INCOME ECONOMY BY 2025 Mr. Valentino Mlowola, Director General, Prevention and Combating of Corruption Bureau, P. O. Box 4865, Dar es salaam-Tanzania, Tel: +255222150043 -6, Fax: +255222150047 Email: dgeneral@pccb. go. tz mlowolat@yahoo. com Website: www. pccb. go. tz 1

CORRUPTION THE CONCEPT THE TERM ORIGINATED FROM TWO LATIN WORDS 1. Corrumptus: meaning “Spoiled” 2. Corrumpere: meaning “ to break or to ruin” It connotes something bad or destructive THE PREVENTION AND COMBATING OF CORRUPTION ACT NO. 11 OF 2007 does not define the concept, but creates offenses of corruption. 2

THE CONCEPT • The term Corruption has not received universal accepted definition because one community would see a particular act or omission as corruption while another may differ. • In a Sub Saharan African community giving a gift to a leader may be interpreted as corrupt by another society. • The conventional view is that corruption is the abuse of vested authority for private gain. It a cross-cutting phenomenon involving theft, fraud, embezzlement, money laundering, financial transactions and social service delivery where such services are obtained at a fee. 3

EFFECTS OF CORRUPTION 1. SOCIALLY: It hurts life outcomes in a variety of ways It affects adversely Family and national fabric 2. ECONOMICALLY: Diverts resources away from most productive uses It supports extravagant lifestyles of elite to the expense of the rest 3. POLITICALLY: Undermines legitimacy of political systems by giving elites alternatives ways of clinging onto power other than democratic choice. It affects peace and security of any given society when people lose faith to the existing political system 4

EFFECTS Cont. . Corruption causes tariff barriers to trade, lack of level playing field especially in procurement. • Doing business becomes costly, policy and rules are not clear and when interpreted by officials there is no consistent application of those rules. • The law, rules, regulations and procedures give room to corruption because they are ambiguous and sometimes inconsistent in its application. • Corruption is a clog in the wheel of political, socio-economic development. • 5

SCOPE OF THE PROBLEM 1. GLOBALLY: Cost of the corruption is estimated at 5% of global GDP(OECD-2016) Af. DB Estimates 50% of Tax revenue in Africa is lost to corruption (African Development Bank: Africa Economic & Financial Brief, Vol. 4, September, 2013). Corruption is facilitator to all major threats to peace and security( Terrorism, Human trafficking, Narcotic trafficking, Environmental crimes, Recent revelations on PANAMA PAPERS, wave of Refugees invasions and terrorist incidents in Europe Prompted major powers to put Corruption as top global agenda( London and Paris summits 2016) 6

STATE OF CORRUPTION IN TANZANIA 2. TANZANIAN CONTEXT: Corruption was the Major Election agenda 2015: all major political parties vowed to fight corruption. Majority of Tanzanians felt corruption was rampant. Major dramatic scandals were caused by corruption as per public perception. Tanzania ranked 117 th out of 182 countries as per Transparency International Corruption Perception Survey (2015), Botswana 28 th, Rwanda 44 th. Most surveys conducted by various stake holders often focus on petty corruption as opposed to grand corruption. Law Enforcement, Hospitals, Judiciary and other public service sectors always top the list of the most corrupt. However, strategic sectors such as revenue collection and Construction sectors always miss scrutiny eye of the common man. Generally in Tanzanian context almost every sector was affected by corruption that’s why it was the major political 7 agenda.

COUNTERACTION Corruption as a social phenomenon can be countered by two approaches 1. POLITICAL WILL 2. GOOD GOVERNANCE 8

POLITICAL WILL 1. This approach is very viable in third world countries where democracy is fragile and the Executive arm of the Government has the absolute powers to make decisions. 2. The Corruption counter measures depends on the government of the day and who is at the helm. 3. Where the president decides to support anti corruption efforts seriously then all government machinery shall align to that vision. 4. In most countries political will is the major missing link in the fight against corruption 5. Most anti corruption bodies may resort to self censorship if the perceive the president is not serious on the fight. 9

GOOD GOVERNANCE 1. Refers to how public institutions conduct public affairs and manage public resources. 2. Good governance is the exercise of official powers in the management of the country’s resources for the betterment of the citizenry. 10

GOOD GOVERNANCE… Ø Five principles of good governance: 1. Accountability – is the ability of citizens to hold elected and appointed officials responsible for specific actions, activities or decisions. 2. Transparency – is the public access to knowledge of the rules, policies and strategies of government. 3. Predictability – refers to the existence of laws, regulations and policies to regulate society; and their fair and consistent application. 4. Capacity – refers to institutional and organizational infrastructure and capability necessary to formulate and achieve desired policy outcomes. 5. Participation – recognizes that people are at the heart of democratic development and therefore their participation is necessity. 11

TANZANIA EFFORTS in fighting Corruption; historical background… British Colonial rule created offence of corruption in Tanganyika (prevention of corruption Ordinance in 1930) before corruption was unheard of although Tanganyika was created by Germans in the late 1880 s. Tanzania Government enacted The prevention of corruption Act no 16 of 1971 which led to creation of Anti Corruption Squad, a Law Enforcement based entity, the Oldest in Africa which commenced operations in 1975. 12

History… • The Agency and the Legislation have been evolved from time to meet the everchanging challenges. • The current piece of legislation, “The Prevention and Combating of Corruption Act No. 11, 2007” is based on the United Nations Convention Against Corruption of 2003, having three pronged approach which are community education (public awareness); Prevention through Research, and Law Enforcement. 13

History… Major corruption scandals emerged after re introduction of Free Market Economy post Nyerere’s Regime. Scandals such as Richmond, The BAE (British Aerospace PLC) IPTL and Escrow Account Case etc caused discontent among the general public. Corruption became rampant and culture of impunity reigned supreme. Corruption posed real danger to peace and Security and the Nation was in the verge of disintegration. 14

The 5 th PHASE GOVERNMENT • The 5 th Phase Government of Tanzania was elected in the end of October 2015 General Elections. The major election Agenda for almost all major Political parties during the campaigns was Corruption. • The current President His Excellency Dr. John Pombe Joseph Magufuli vowed, during the campaign to deal with corruption ruthlessly and without hesitation. • Dr. Magufuli promised to establish Special Court for Corruption, as he put it “Jail the Corrupt and Embezzlers”. During his inauguration speech to the New Parliament on 20 th November, 2015, the President declared “War on Corruption”. He said, He will fight corruption with unprecedented tenacity and ready to pay his life as sacrifice and urged the nation to pray for him, and support him. 15

NEW GOVERNMENT EFFORTS • The President wasted no time to put his intentions into actions, immediately after swearing in of the New Government, he started by taking Administrative and Legislative actions to fight corruption. Ø LEGISLATIVE ACTIONS: • Special Anti-Corruption Division has been established in the High Court on July, 2016. Regulations to control Court proceedings are underway. • Review of Prevention and Combating of Corruption Act, is underway to amend it to suit the current environment. • Whistle Blowers Act is also under review to enable the public to give their support without jeopardizing their security. • 10 High Profile Corruption cases have been sent to court within 5 months. 16

NEW GOVERNMENT EFFORTS Ø ADMINISTRATIVE ACTIONS: • Sacking of government officials from public office who are suspected to indulge themselves in corruption, or were not able to perform as per current pace. • Cutting wasteful expenditure by controlling unnecessary foreign travel by government officials, Annual public festivals, buying of luxurious SUVs to focus on projects that will have direct impact to the public such as construction of roads and provision of free education to children. • Actions have been taken against prominent business persons who evaded massive tax, many of them are opting to pay tax or they face court action. • Clamping down of Ghost Workers salary, a scheme by which criminal syndicates in the Government used to steal money from the wage-bill (current statistics stand 17 over 12, 500 ghost workers).

NEW GOVERNMENT EFFORTS The actions taken by the New Government has sent a very clear message to both members of the public, and Government officials. • Public Officials have realized that, the business is not as usual, there are consequences if they indulge on corrupt practices. • Members of public have been encouraged by the President’s zeal and have been providing necessary information that has enabled the Government to discover massive tax evasion and other maladministration. • Now major corruption scandals are being exposed on Media by members of public who are confident now that, action will be taken. • 18

NEW GOVERNMENT EFFORTS Ø Public participation and support has enhanced Government’s performance tremendously for instance: • The Government revenue collection rose almost two folds from what was being collected during the last phase Government [From 850 Billion Tanzanian Shillings to 1. 7 Trillion Tanzanian Shillings per month in January 2016]. • Financial and Fiscal discipline is now slightly but surely being observed and public officials are forced to be accountable. Ø The New Government continues to fight corruption with increased vigor, it is our belief that, by fighting corruption effectively, the quality of lives to our citizens will be highly improved and poverty will be 19 gradually eradicated.

PCCB STRATEGIES AS PER OUR MANDATE Under S. 7 of PCCA, 2007 PCCB is fighting corruption through three prongs approach: 1. Public Awareness: We conduct various programs that are geared at involving the community at large, (focus is young generation). 2. Research and Control: We conduct research on corruption vulnerable sectors to identify loopholes and recommend countermeasures. 3. Criminal Investigation and Enforcement: We investigate and arrest offenders and send them to court. • The enactment of the Prevention and Combating of Corruption Act, 2007 aimed at complying with the United Nations Convention Against Corruption, 2003 into our Legislation. The current legislation have 24 offences as compared to 1971 Legislation which was having only 4 offences. • Also the PCCB participates in different International Initiatives of fighting corruption like the International Association of Anti. Corruption Authorities which Tanzania is the Vice President; Corruption Hunters Network which Tanzania is a member, East African Association of Anti-Corruption Authorities which Tanzania is a current President. These Initiatives helps in Investigation, gathering of Information and evidence. 20

ROLE OF ENGINEERS TOWARDS VISION 2025 § Construction and Extraction sectors are regarded as one of corrupt prone sectors globally and nationally’. • Engineers are important stake holders for any country to make giant strides towards development. • Infrastructure development cannot be possible without the work of engineers • The country is geared at Oil and gas economy that depends heavily on Engineers • The focus of the 5 th phase government is development of infrastructure, 16% of total Budget is allocated to Ministry of infrastructure • The realization of vision 2025 depends heavily on role to be played by engineers. • Behaviour of our engineers will decide the fate of this nation and the dream of industrialization • All parties involved in the Infrastructure sector share responsibility for preventing corruption. Corruption can only be prevented if 21 all stakeholders take effective and co-ordinated action towards fighting corruption.

Construction of Calvert at Mivugalo Village in Same District few days after Hand over value for money was not considered. 22

Bridge at Mkalamo village in Pangani District swept away shortly after construction was completed. 23

The demonstration Standard Gauge Railway line at Soga village in Kibaha District meant for flag off of the project shortly before 2015 General Election. 24

…ROLE OF ENGINEERS • Engineers should not participate in any activity which they believe or suspect involves corruption. • Engineers should report any activity which they believe or suspect involves corruption. • Engineers should abide by the professional ethical code. • Engineers should encourage their organizations to adopt anti-corruption measures as an integral part of corporate and project management. • Engineers if they indulge in corruption they will find themselves frequent visitors to PCCB Offices and consequently serve their term in Prisons 25

PUBLIC EXPENDITURE TRACKING SYSTEM PCCB has established a tracking system in order to monitor public funds in development projects. Role of PETS coordinators is to monitor and inform the Headquarters about the faults in development projects Reports by PETS coordinators in district level enable the commencement of investigations. Engineers involved in development projects are hereby warned of an impending dangers to their careers. 26

THE ROLE OF THE GOVERNMENT • To develop comprehensive strategies to combat corruption( NACSAP 1, 111). • To provide legal framework to enable level playing field for all stakeholders bidding for public projects, • To enable institutions and Companies to implement and maintain adequate anti-corruption measures within their organisations. • To deter and eliminate extortion by officials in the issuance of government approvals and permits. • To put in place a reporting mechanism whereby individuals and organisations may report corruption to the authorities in a safe and confidential manner. (whistle blowers) 27

CHALLENGES FACING ANTI-CORRUPTION EFFORTS • • Weak structures in the government which encourages corruption. Corrupt mindset of citizens who have been led to believe they have to pay bribes for government services (Culture of glorifying corruption). Weak criminal justice system. Lack of capacity in investigation of complex financial crimes. Resistance from powerful corrupt syndicates. Involvement of Multilateral corporations in corruption. Complexity of foreign (developed? ) Governments in hiding moneys from political leaders (secrecy laws). Mutual Legal Assistance still a challenge in investigating corruption cases involving external jurisdictions. 28

LAST WORDS PCCB Welcomes all Engineers to the battle field against corruption for the sustainable development of our country and realization of our Nation vision 2025 that will place our country onto middle income band wagon. PCCB as lead agency against corruption recognizes the importance of community participation in the war against graft, we will cooperate with Engineers to make sure that corruption does not hinder smooth operations of your various projects Lastly PCCB will not hesitate to intervene with your projects if you do not play by the rules. 29

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