HARDLY two months after President John Magufuli expressed anger over signing of a Memorandum of Understanding (MoU) between the Ministry of Home Affairs and Romanian firm- ROM Solution Co. Ltd-for the supply of fire and rescue equipment, the government yesterday nullified the agreement.
Briefing reporters yesterday in Dodoma, Minister for Home Affairs, George Simbachawene said the decision to nullify the agreement was reached and agreed by both sides that were involved in the signing of the document.
“As I was working on this matter, I learnt that the MoU was signed on August 22, 2019 between the former Commissioner General of Fire and Rescue Force and ROM Solutions Co. Ltd for the latter to supply fire and rescue equipment to the former worth Euros 408.41million,” Simbachawene said.
He added: “Having gone through the document, the government noted that there was no need to proceed with its implementation due the fact that it was not beneficial to the country (Tanzania).”
According to the minister, the government nullified the agreement on February 12, 2019, adding that until the nullification of the pact, the government had not effected any payments to ROM Solutions Co. Limited.
“Let Tanzanians be informed that the agreement between Fire and Rescue Force and ROM Solutions Co. Ltd is null and void, because it was cancelled and both sides agreed on the nullification decision,” he emphasized.
Mr Simbachawe stressed that after cancellation of the MoU, the government didn’t incur any loss nor did it receive any demands from the other side or any other entity.
The minister said the former Commissioner General of Fire and Rescue Force had no mandate to sign the document, insisting that it was the Ministry of Finance and Planning on the part of Tanzanian government that was vested with powers to enter the agreement.
According to Mr Simbachawene, there were guiding laws and principles governing financial agreements between countries, especially on grants, external concession and non-concessional loans, adding that ROM Solutions Co.Ltd also had made some technical glitches, as the person who signed the MoU had no legal mandate.
Having cancelled the agreement, Mr Simbachawene said the Tanzania Automotive Technology Centre (Nyumbu) will now be awarded the tender to produce fire and rescue equipment, including fire engines before supplying them to the councils.
“The president, in his directives, wants Tanzania People Defence Forces through its plant in Kibaha to revive grounded government vehicles, including producing new ones,” he said, adding that “What is required of us is to submit our quotations to the centre for production of fire engines.”
In business context, a quotation is a document that sets out the estimated cost, for supplying goods or services or procuring something.
On January 23, 2020, when inaugurating residential houses for prison wardens in Dar es Salaam, President Magufuli broke out news on the existence of the MoU between the Fire and Rescue Force and ROM Solutions CO. Ltd.
The same day, the head of State fired the then Minister for Home Affairs, Mr Kangi Lugola and the then Commissioner General of Fire and Rescue Force, Tobias Andengenye.
The President also ordered the Prevention and Combatting of Corruption Bureau (PCCB) to investigate the agreement.
On February 21, 2020, PCCB acting Director General, Brigadier John Mbungo said investigation into the matter was complete by 99 percent. He said Lugola and others involved could face economic crime charges.
