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| Tanzania's leader sacks cabinet | Tanzania's leader sacks cabinet |
| (20 minutes later) | |
| Tanzania's president has dissolved his cabinet in the wake of a corruption scandal that forced the resignation of the prime minister and two ministers. | Tanzania's president has dissolved his cabinet in the wake of a corruption scandal that forced the resignation of the prime minister and two ministers. |
| The three were implicated in an energy deal involving a US-based electricity company which is said to be costing the country more than $100,000 a day. | The three were implicated in an energy deal involving a US-based electricity company which is said to be costing the country more than $100,000 a day. |
| They deny any wrongdoing but there has been a public outcry about the affair. | They deny any wrongdoing but there has been a public outcry about the affair. |
| The firm was hired in 2006 to provide emergency electricity during a power crisis, but MPs say it failed to do so. | The firm was hired in 2006 to provide emergency electricity during a power crisis, but MPs say it failed to do so. |
| President Jakaya Kikwete is holding consultations about forming a new cabinet, which he hopes will be in place before US President George Bush visits the country next week. | |
| Prosecution calls | Prosecution calls |
| Correspondents say pressure has been mounting on the government to crack down on officials linked to corruption. | Correspondents say pressure has been mounting on the government to crack down on officials linked to corruption. |
| The storm has been gathering... and people have been very dissatisfied with the performance of some ministers Political analyst Mwesigye Baregu | The storm has been gathering... and people have been very dissatisfied with the performance of some ministers Political analyst Mwesigye Baregu |
| A parliamentary committee set up to investigate the energy deal revealed that the government was losing more than $100,000 a day to the company that was awarded the contract. | A parliamentary committee set up to investigate the energy deal revealed that the government was losing more than $100,000 a day to the company that was awarded the contract. |
| Political analyst Mwesigye Baregu says the resignations allow the president to reposition his government and restore public confidence in the face of sharp criticism. | Political analyst Mwesigye Baregu says the resignations allow the president to reposition his government and restore public confidence in the face of sharp criticism. |
| "The storm has been gathering in the past two years and people have been very dissatisfied with the performance of some ministers," he told the BBC's Network Africa programme. | "The storm has been gathering in the past two years and people have been very dissatisfied with the performance of some ministers," he told the BBC's Network Africa programme. |
| Former Prime Minister Edward Lowassa made an emotional speech to parliament when he resigned on Thursday, saying he felt the committee had misled parliament. | Former Prime Minister Edward Lowassa made an emotional speech to parliament when he resigned on Thursday, saying he felt the committee had misled parliament. |
| Energy and Minerals Minister Nazir Karamagi and Ibrahim Msabaha - a former energy minister and now in the East African Community ministry - resigned hours after him. | Energy and Minerals Minister Nazir Karamagi and Ibrahim Msabaha - a former energy minister and now in the East African Community ministry - resigned hours after him. |
| The BBC's Vicky Ntetema in Dar es Salaam says Richmond Development was contracted to bring in generators to provide 100 megawatts of electricity each day after a drought early in 2006 left low water levels in dams leading to severe power cuts. | The BBC's Vicky Ntetema in Dar es Salaam says Richmond Development was contracted to bring in generators to provide 100 megawatts of electricity each day after a drought early in 2006 left low water levels in dams leading to severe power cuts. |
| By the time the company was ready to start operations, Tanzania's power problems had been resolved. | By the time the company was ready to start operations, Tanzania's power problems had been resolved. |
| 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. | 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. |
| The parliamentary committee has recommended that those implicated in the scandal be prosecuted but observers say the onus remains with President Kikwete. | The parliamentary committee has recommended that those implicated in the scandal be prosecuted but observers say the onus remains with President Kikwete. |