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| Tanzanian PM to resign over graft | Tanzanian PM to resign over graft |
| (about 1 hour later) | |
| Tanzania's prime minister has tendered his resignation after being implicated in an energy deal corruption scandal. | Tanzania's prime minister has tendered his resignation after being implicated in an energy deal corruption scandal. |
| "Because I have been linked to this scandal, I have decided to write to the president asking to be relieved of my duties," Edward Lowassa told MPs. | "Because I have been linked to this scandal, I have decided to write to the president asking to be relieved of my duties," Edward Lowassa told MPs. |
| He said he had not been given a chance to respond to allegations that his office improperly awarded a contract to a US-based electricity company. | He said he had not been given a chance to respond to allegations that his office improperly awarded a contract to a US-based electricity company. |
| The firm failed to provide emergency power during a power crisis in 2006. | The firm failed to provide emergency power during a power crisis in 2006. |
| The BBC's Vicky Ntetema in Dar es Salaam says a drought early that year had left water levels in dams low leading to severe power cuts. | The BBC's Vicky Ntetema in Dar es Salaam says a drought early that year had left water levels in dams low leading to severe power cuts. |
| Richmond was contracted to bring in generators to provide 100 megawatts of electricity each day. | Richmond was contracted to bring in generators to provide 100 megawatts of electricity each day. |
| But a parliamentary inquiry, launched in November, found that the generators failed to arrive on time and when they did, they did not work as required. | |
| Despite these failings, the government was contracted to pay Richmond more than $100,000 a day. | Despite these failings, the government was contracted to pay Richmond more than $100,000 a day. |
| Mr Lowassa's office later influenced the government's decision to extend Richmond's contract despite advice to the contrary from the state-run energy company Tanesco, the inquiry alleges. | |
| Richmond "lacked experience, expertise and was financially incapacitated", ruling party MP Harrison Mwakyembe, who headed the investigation, is quoted by Tanzania's Guardian newspaper as telling parliament on Wednesday. | Richmond "lacked experience, expertise and was financially incapacitated", ruling party MP Harrison Mwakyembe, who headed the investigation, is quoted by Tanzania's Guardian newspaper as telling parliament on Wednesday. |
| Richmond transferred its tender to another company, Dowans, last year. | |
| Our correspondent says Mr Lowassa, who entered politics in the 1980s, is a very close ally of President Jakaya Kikwete who came to power in 2005. | Our correspondent says Mr Lowassa, who entered politics in the 1980s, is a very close ally of President Jakaya Kikwete who came to power in 2005. |
| But this is not his first brush with controversy. | But this is not his first brush with controversy. |
| Under President Ali Mwinyi, he was relieved of his duties as a land minister because of allegations of corruption. | Under President Ali Mwinyi, he was relieved of his duties as a land minister because of allegations of corruption. |
| The scandal infuriated Julius Nyerere, Tanzania's respected independence leader. | The scandal infuriated Julius Nyerere, Tanzania's respected independence leader. |