trust.org: Tanzania sets up special unit to scrutinise gas revenues and wealth fund

Tanzania’s government is forming a special unit to monitor its natural resource revenues from major gas discoveries that promise to lift the country from poverty and free it from dependency on foreign aid in the coming decades.

The east African nation has enough natural gas, more than 50.5 trillion cubic feet discovered so far, to provide energy independence and bring significant export revenues. But Tanzania lacks experience in exploiting oil and gas, so relies on contracts with foreign companies such as Statoil of Norway and ExxonMobile to develop its immense offshore finds.

At the same time, the country has a poor track record on corruption and has seen limited benefits from its wealth in gold, diamonds and uranium, raising considerable citizen concern over prospects for the millions of dollars in gas revenues expected to flow into the Tanzanian treasury.

Tanzania’s Controller and Auditor General (CAG) Ludovic Utouh said in an interview that his office is seeking technical support from Norway and the Netherlands to help train auditors on how to manage and oversee the lucrative sector.

“We are very excited and hope these institutions would help our people acquire necessary skills and knowledge to audit revenues from this industry,” Utouh said. MORE