Zanzibar Daima

By Bernard James

Former Bank of Tanzania Edwin Mtei delivers a speech in Dar es Salam on Tuesday evening during the launch of his memoirs titled ‘from goat-herder to Governor’. Former Finance Minister Edwin Mtei has for the first time revealed how he parted ways with the founding President, Mwalimu Julius Nyerere. Mr Mtei describes the dramatic events that led to his resignation in 1979 in his newly published memoirs that give an insight into his working relationship with Mwalimu.

The two, it is publicly acknowledged, fell out over sharp differences on policy, but Mr Mtei, who also served during Mwalimu’s reign as the youngest ever central bank governor, tells of his struggle to win the former President’s backing on measures to save the then struggling economy.

The memoirs, unveiled in Dar es Salaam on Tuesday evening, detail how his attempt as Finance Minister to adopt International Monetary Fund (IMF) guidelines angered Mwalimu during a meeting with donors. That was the final straw that saw the two men part company.

Mr Mtei says although he was many times a lone voice in government, he was happy that most of what he stood for has come to pass with time. “The extent of our differences led to our parting. Perhaps I was not persuasive enough,� he explains in his book.
IPP executive chairman Reginald Mengi launched the book at a ceremony attended by former Foreign Affairs minister Ibrahim Kaduma and several former government officials. Mr Mtei’s wife, Johara, and renowned journalist Jenerali Ulimwengu were also present. They described Mr Mtei as a highly principled man who should be treated with honour. Mr Mtei also warns in his book that Tanzania’s political situation was worrying, and calls on leaders to rekindle the confidence and trust of the people.

Mr Mtei’s resignation from the government sent shockwaves across the country and beyond the borders; for he was a well-known and articulate state official. He says he resigned in protest at the rejection of his support for the adoption of some the IMF’s proposals. The former East African Community Secretary-General captures in detail his private and public life that saw him play a major role in nurturing political pluralism in Tanzania.

In an anecdote that describes Nyerere’s intense dislike of donor influence, Mr Mtei tells of a meeting with the Bretton Woods institutions’ officials at Mwalimu’s private residence at Msasani in Dar es Salaam that led to his resignation. At the Government’s request, the IMF had agreed to provide long-term credit to bail out the economy, but had first to seek commitment on the implementation of some economic adjustment measures. Mr Mtei and his staff had drafted a rescue programme, which he believed would be acceptable to both Mwalimu and the IMF at a scheduled meeting in November 1979.

“Although he was prepared to accept most of the proposed financial assistance measures, Nyerere was fiercely opposed to any proposal to privatise the public corporations. He was also fiercely opposed to the devaluation of the Tanzanian shilling. It was apparent to me that he was being advised by other persons against doing anything that would affect the exchange rate or public-owned corporations that were either bankrupt or loss-making,” Mr Mtei says.

This was despite Mwalimu being aware of the huge Treasury subsidies that were being dished out to many of the corporations, most of which were no longer commercially viable. Mwalimu refused to budge. “This uncompromising attitude on the part of my boss was not only disappointing, but started to worry me,” Mtei writes. “I could see the President was not happy with these explanations and was becoming agitated.

In the end, he thanked the leader of the mission and said that he was unable to accept the advice to devalue our currency, but would certainly like to strengthen the management of public corporations in a manner he considered acceptable and workable and at an appropriate time. “He then abruptly stood up, and left us on the veranda. He then walked to the beach near his residence.

“We were all perplexed and I decided to follow him to the beach, at least to bid him farewell. When I was able to talk with him, he indicated that he considered the visitors insolent, and added that he would never allow his country to be run from Washington.
He told me to tell them to go back to Washington. He added that whatever arguments were advanced, ‘the shilling will only be devalued over my dead body’.

“That night I was unable to sleep. The next day was a public holiday, but early in the morning I went to my office and drafted a letter to request the President to relieve me of my duties as Finance Minister. I touched on negotiations with the IMF and the fact that I had spent many days and nights trying to come up with proposals, which, in my view, would have gone a long way in solving many of Tanzania’s economic and financial problems. I was shaking with emotion as I handed the letter to the President.”

On the current political situation, Mr Mtei says the citizen’s tolerance of non-performing regimes was fast running out. It lasted this long because the people believed the matter would in the long run be sorted out satisfactorily because their leaders were clean, incorruptible, committed and dedicated patriots.

“Today, in increasing numbers, they have come to realise that the virtues they counted upon in the leadership of the nation have been seriously eroded.” He says despite the revelation of corrupt deals of monumental proportions, the leadership still displayed an almost casual and disdainful attitude. “Even where obvious misdeeds have come to light, culprits are spared, and action against them are postponed unnecessarily,” he writes.