TANZANIA PRESIDENT THREATENS UNDERPERFORMING GOVERNMENT ENTITIES

President Magufuli (2R) receives a cheque worth 10.48B/= from Interim CEO of National Microfinance Bank, Ruth Zaipuna

By Our Reporter, Dodoma TANZANIA

Tanzania President, John Magufuli, has threatened to shut down 187 government institutions, authorities and agencies for underperforming despite the government spending 59.6 trillion/- ($25.8 Billion) investment capital.

He has given the organisations’ board chairpersons and their Chief Executive Officers up to January 22, next year to give dividend to the Treasurer Registrar and Finance and Planning Minister or resign their positions.

Speaking after receiving dividend and surplus contributions from 79 government institutions, authorities and agencies worth over 1.05trn/- ($455.1Million) in Dodoma on Sunday, the President said that the government had invested at least 59.6 trillion/- into its 266 institutions.

“Unfortunately only 79 institutions are returning the favour,” he said, adding: “The time to plead with each other is over and we cannot tolerate seeing the government continue to lose.”

He blamed non-performing firms for embezzlement of public funds by spending it on luxury vehicles, hotels as well as expensive board meetings, consequently limiting their ability to generate profits and pay dividend.

Magufuli stressed that the government was eager to reap benefits from its long time investments.

Tanzania Ports Authority emerged the leading payer after submitting a cheque of 169 Billion/- ($73.25 million) in the dividend.

Dividend of  7.21 Billion/- from CRDB Bank

Others that paid their share include Tanzania Communication Regulations Authority (85.855bn/-), Tanzania Electricity Supply Company (1.400bn/-), Dar es Salaam water and Sewerage (1.395bn/-), Gaming Board of Tanzania (95bn/-) Tanzania Petroleum Development Corporation (66.400bn/-), Tanzania National Parks Authority (44.438bn/-), Ngorongoro Conservation Area Authority (23.538bn/-) Energy and Water Utilities Regulatory Authority (7.212bn/-) and Tanzania Posts Corporation (14.502bn/-). The contribution is for the financial year ending June 30, 2019.

Contributions of government institutions and dividend form 50 per cent of non-tax revenues. The contribution has risen to 1.05trn/- this year, up from 161.04bn/- in 2014/15 financial year, whereby only 24 institutions were involved.

Although the trend of public entities contributing increased with time, the level of revenue collections remains below the government target.

Financial experts suggest that African countries lose at least 100 million US dollars annually to over-invoicing, transfer pricing and corruption; the same ghost still hunting a large section of public parastatals and agencies.

Finance and Planning Minister, Phillip Mpango, said that the country counts highly on revenue collection to implement many of its large scale development projects to improve service delivery, reduce poverty and reduce the rate of unemployment.

He said 70 per cent of the government revenue comes from tax and non-tax sources.

 “There has been an increase in revenue that is collected through the treasury accounts from the projected 597.77bn/- to 683.23bn/-,” he said, attributing it to improved government policy and widening the number of institutions.