Public firms told to avoid excesses

BILHAM KIMATI

PRESIDENT John Magufuli has directed board chairpersons and chief executive officers of public institutions to execute their duties professionally and exercise caution on excessive expenditure to avoid dependency on government budget support.

Delivering the message from President Magufuli at a brief work session aimed at strengthening the oversight of public institutions and statutory cooperation in Dar es Salaam yesterday, the Treasury Registrar, Mr Lawrence Mafuru, called for self-assessment among public entities on delivery in line with the core functions of their establishments.

“There are 126 public entities in total with assets valued at 20 trillion/-. These were expected to contribute at least 22 per cent of the Gross Domestic Product (GDP), but hardly make a payment of 0.85 per cent in the form of Return of Investment.

Suppose this was your business; would you still keep the financier accepting less than one per cent return of investment or fire and hire a new one?”Mr Mafuru queried.

Highlighting on the noticed operational impediments as experienced by the majority of public organisations that failed to give dividends to the government as supposed to, the registrar called for immediate elimination of obstructions to allow creation of one function-system for realisation of working convergence.

Key issues that board chairpersons and CEOs should adhere to include stay away from the business as usual disorder to ensure efficient delivery of services to meet people’s expectations. “If entrusted to supervise work for the public to enjoy the supply of water, electricity, teaching at school or treating patients, you must do this with commitment,” he said.

Others include impartial delivery of services; free of mismanagement of public resources for maximum utilisation of the local think-tanks. Loans should be sought from local financial institutions like the TIB Development Bank.

Commenting on shared skills, the presenter said the administration of non- performing public entity, for example, should not be ashamed of seeking advice from their private sector counterparts with good record in financial management.

“It is advisable to make the necessary adjustments for the improvement of managerial skills. Don’t sit in your small ‘silo’ and think that your mother is the best cook. Get a test of food from your neighbour and decide.

Avoid excessive expenditure that might subject you at risk. President Magufuli has shown the way for each of us to follow,” Mr Mafuru insisted. As for the financial records, it was insisted that all audited accounts should be up-to-date and submitted before December 15, every year starting 2015.

Hiring outsiders for consultancy should be backed up by indisputable report that the office lacked the capacity. Procurement has become one of the mechanisms that enhanced serious depletion of public resources, Mr Mafuru noted, adding that items have unnecessarily bought at inflated prices.

He urged board members and CEOs to be innovative enough to promote productivity for effective delivery in their administrative areas. As for hospitality allowances previously given to members of parliamentary committees when visiting public organisations, such payment will no longer be entertained and a quick review is underway to make sure that MPs do not become board members to avoid conflict of interest.

He concluded the talk by reminding delegates to honour the president’s appointment, which is not simply a present but rather a mark of distinction that should be complemented by diligence and serious and upright engagement in the assigned duties to boost the nation’s economy.

During the open discussions that ensued, Dr Albina Chuwa called for a review of inequitable remunerations given to managements of public entities despite performing equal tasks.

Prof Emmanuel Mjema from the College of Business Education (CBE) expressed disapproval for bureaucratic procedures in procurement and servicing of public vehicles that caused unnecessary expenses, Retired Chief Secretary Mr Marten Lumbanga, who is also the Board Chairman of PPRA, gave a vote of thanks; explaining his support to the president’s directives, which, according to him, could lift the country out of poverty.