TANESCO suspends top officials over embezzlement claims

DAR ES SALAAM, July 15 (Reuters)– Tanzania’s state-run power company has suspended its managing director and three other senior managers over allegations of embezzlement and abuse of office.

Sunday, July 15, 2012

DAR ES SALAAM, July 15 (Reuters)– Tanzania’s state-run power company has suspended its managing director and three other senior managers over allegations of embezzlement and abuse of office.The Tanzania Electric Supply Company (TANESCO) board said Managing Director William Mhando was suspended along with Deputy Robert Shemhilu, Chief Finance Officer Lusekelo Kassanga and senior procurement manager Harun Mattambo. "TANESCO’s board of directors has been forced to suspend the managing director ... to pave way for an investigation,” the power firm’s board chairman, Robert Mboma, said in a statement issued late on Saturday."The board has taken the necessary steps to ensure TANESCO’s operations are not affected by this move.”For years, the east African nation has suffered from frequent power blackouts that have sometimes hit economic growth as firms shut down production lines during outages.A report from the government’s chief auditor in April exposed mismanagement and misuse of government funds in TANESCO and other state-run agencies.President Jakaya Kikwete sacked six cabinet ministers in May, including the energy and minerals minister, over the corruption allegations in their ministries.Kikwete had pledged to follow up the ministerial sackings with disciplinary action against heads of state-run institutions implicated in graft allegations. Agencies