ATCL for DSE listing, says Sitta

By James Kandoya

Transport Minister, Samwel Sitta

Transport Minister Samwel Sitta has said the government intends to list the Tanzanian flag-carrier Air Tanzania Company Limited (ATCL) at the Dar es Salaam Stock Exchange (DSE) to increase the ......................
firm’s sources of revenue.

Sitta was on familiarisation tour of institutions under the Ministry of Transport.

 

On Tuesday he visited Tanzania Airport Authority, Tanzania Railway Limited (TRL), Tanzania Zambia Railway Authority (TAZARA) and  the ATCL.

“It’s high time the company is listed at the DSE to allow more people especially local Tanzanians to invest in the company.”

 

According to the minister the decision to list the firm at the stock market follows the increasing financial crisis facing by the company.

 

 “This will enable ATCL to be free from borrowing monies  from various financial institutions. As more people will be interested to invest in the company, thus boosting the company’s operations, efficiency and competitiveness.”

 

Citing Ethiopian Airline as an example, the newly appointed transport minister said  the airline was doing well and was among the best airlines in the African airline industry.

 

ATCL Chief Executive Officer Capt Milton Lazaro highlighted the company’s expansion plan noting that it’s set to procure at least four brand new aircrafts this year.

 

He also said the firm is subsequently repairing two aircrafts to revamp its operations.

He promised to deliver optimum quality and superior airline services that meet local and international demands.  

 

Early this month, three Dar es Salaam firms requested the High Court Commercial Division to continue with plans to auction Air Tanzania Corporation Limited building in a bid to recover their monies.

 

The three firms - Leisure Tours and Holidays, Wellworth Hotels & Lodges Ltd and Tanzania Bags Corporation (1998) Limited (TBC) - demand a total of USD 1,182,595.38 (2.01bn/-) from the troubled ATCL as payments for various services offered in the past.

 

However, the value for the said building was perched at 12bn/- by 2013 and the value is likely to have increased.

 

The three firms reached the decision after ATCL and the government (Ministry of Transport) had failed to honour the  agreement reached between ATCL and the companies in September last year to have the debt settled  between October and December in the same year.

 

Leisure Tours and Holidays claimed about USD 477,506.38 while Wellworth Hotels & Lodges Ltd demanded USD 661,089 and TBC claimed USD 44000. 

The companies which were being represented by Msemwa & Company Advocates wrote to the High Court requesting to auction  the said building after ATCL’s failure to honour the agreement.

 

In the letter dated January 8, this year which was signed by advocate Jerome Msemwa to the Court Registrar requested the court to auction ATCL building which is situated along Ohio Street in the City.

SOURCE: THE GUARDIAN