Tanzania has passed the US government’s Millennium Challenge Corporation (MCC) Control of Corruption index and qualified for over 1trn/- ($472.8million) grant in the 2016 fiscal year.
However, despite the approval, a statement availed to The Guardian by the US embassy in Dar es Salaam yesterday, the MCC will continue to monitor the government’s efforts and commitment to combat corruption.
According to the statement, following the approval, signing of the compact is expected sometime next year.
“The compact is designed to increase access to reliable electricity, strengthen utilities’ management in the energy sector and catalyse private sector investment,” details the statement.
In his reaction, the US Ambassador to Tanzania, Mark Childress underscored the need for Tanzania to enhance its fight against corruption for proper and efficient implementation of projects under the proposed compact.
“I am happy that Tanzania has passed the Control of Corruption indicator on the MCC’s forthcoming fiscal year 2016 scorecard,” said the US Ambassador. He went on to highlight the need for the country to put in place a favourable environment for the business community and ensure public trust to the government and its institutions is regained and natured.
“It is expected that Tanzania’s October 25 General Elections will be free and fair, consistent with the importance MCC places on democratic rights.
“It is expected that Tanzania’s October 25 General Elections will be free and fair, consistent with the importance MCC places on democratic rights.
A few weeks ago (Sep 17th) MCC’s Board of Directors indicated that it would vote on a compact with Tanzania if the country scored above the relevant median in the Worldwide Governance Indicators’ latest annual Control of Corruption index.
It noted that control of corruption is a key indicator for the country to qualify for the MCC compact fund and cautioned that several countries have failed to meet the criteria.
Notably, at the end of last year the government’s image and reputation took a severe blow as the Tegeta Escrow scandal raged on in which the Attorney General and two ministers were forced to resign. In May this year, the US government announced to hold the signing of the MCC compact with Tanzania pending the government’s action on the scandal in which over 300bn/- was withdrawn from the Tegeta Escrow Account at the Bank of Tanzania.
The value in the MCC facility was by then pegged at around USD700 million for five years from 2015.
MCC's Board of Directors selected Tanzania as eligible to develop a second compact in December 2012. The compact was expected to focus on Tanzania's energy sector and its goal was to advance economic growth and poverty reduction in the country through strategic investments in transportation, energy, and water infrastructure.
SOURCE: THE GUARDIAN
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