TANESCO: Uncovers Extensive Kahama Mine Power Theft Scheme

• TANESCO uncovered an illegal electricity network supplying 11 miners at Mwime Mine in Kahama, Shinyanga Region.
• The scheme involved a bypassed meter showing zero consumption and the unauthorized resale of power to other miners.
• TANESCO is pursuing recovery of stolen electricity value and referring serious offenders to authorities.
• Both the perpetrator and those receiving illegal electricity are considered liable for the fraud.
• The utility urges customers to use official channels for electricity connections to ensure compliance and reliability.

Companies operating in Tanzania must conduct thorough due diligence on their utility connections to avoid liability for power theft or benefiting from illegal electricity networks.

The Tanzania Electric Supply Company (TANESCO) recently uncovered an extensive illegal electricity network operating within the Mwime Mine in Kahama Municipality, located in Tanzania's Shinyanga Region. This significant discovery, made during a specialized inspection, revealed a sophisticated scheme involving the theft and unauthorized resale of power to at least 11 miners. Engineer Frank Njavike, an Infrastructure Security Officer for TANESCO, led the inspection team that brought the illicit operation to light.

The investigation pinpointed a critical point of vulnerability: a bypassed electricity meter. This device had been deliberately altered to divert power to various users while simultaneously registering no consumption, effectively showing a "zero" reading. The illicit connections were ingeniously concealed, with wires directly tapping into the main supply and then quickly covered with tape, making them virtually undetectable through casual observation. This elaborate setup facilitated a substantial Tanesco Kahama Mine power theft operation, depriving the utility of legitimate revenue.

The individual responsible for orchestrating this Mwime Mine illegal electricity scheme was not only engaged in outright theft but also profited from the unauthorized resale of power to other miners. This dual illicit activity directly impacts government revenue, which would otherwise be collected through standard, legal connections for each user. Furthermore, those who knowingly received electricity through this illegal network are also deemed liable for utilizing services outside established procedures, highlighting the broad scope of accountability in such cases.

In response to the discovery, TANESCO has initiated procedures to recover the full value of the stolen electricity. For individuals implicated in more serious offenses related to this Tanzania unauthorized power resale, the utility plans to transfer their cases to the appropriate legal authorities for further action. The Chairman of Mwime Mine's Board of Directors, Mr. James Sita, publicly condemned these illegal connections and urged that legal measures be pursued against anyone found to have tampered with the electricity infrastructure. A mine worker, Mr. Mabula Jisena, corroborated the illicit transactions, explaining that workers often paid individuals operating the network, sometimes up to 70,000 Tanzanian shillings, to power equipment like winches. He also noted that when their electricity credit depleted, they would purchase LUKU units from a nearby booth, indicating a parallel, informal system for power acquisition.

TANESCO is actively encouraging all customers to adhere to proper electricity usage protocols and to secure service lines exclusively through official channels, thereby avoiding electricity theft or the construction of unrecognised service lines. This incident underscores the critical importance of Kahama utility compliance for all entities, particularly those in the mining sector, to ensure their power sources are legally sanctioned. Companies operating in Tanzania must conduct thorough due diligence on their utility connections to avoid liability for power theft or benefiting from illegal electricity networks.

To facilitate legitimate connections, TANESCO advises customers currently using unauthorized services to apply for legal electricity services via their *152*00# platform. Following such an application, TANESCO conducts a site survey and provides a clear cost estimate for the connection. Engineer Njavike emphasized that following these established procedures is essential for customers to access reliable and legally sanctioned electricity services, mitigating risks associated with TANESCO electricity fraud and ensuring long-term operational stability. Compliance officers should review existing utility contracts and ensure all power sources are legally sanctioned by TANESCO to mitigate potential financial penalties and criminal exposure.

Companies operating in Tanzania, particularly in the mining sector, must conduct thorough due diligence on their utility connections to avoid liability for power theft or benefiting from illegal electricity networks. Compliance officers should review existing utility contracts and ensure all power sources are legally sanctioned by TANESCO to mitigate potential financial penalties and criminal exposure.

Source: Original reporting via Daily News