Freight forwarders urge more cleansing at TPA

BILHAM KIMATHI

MEMBERS of the Tanzania Freight Forwarders Association (TAFFA) have commended President John Magufuli for 'descending' on the Tanzania Ports Authority (TPA) but cautioned that the irregularities revealed at the port so far could be a mere tip of the iceberg.

The ports authority and the Port of Dar es Salaam have of late been the focus of national attention as tours by the president and the Prime Minister, Mr Kassim Majaliwa, exposed several ills that have tarnished its image, including defaulting on proper revenue collection.

TAFFA Chairman Stephen Ngatunga said at extraordinary annual meeting that brought together about 300 participants in Dar es Salaam yesterday that it was also high time they met the Minister for Finance or even the prime minister to expose the 'rot at the port’ to open the gates for accurate collection of government revenue.

“This will lead to a lasting solution,” the freight forwarders leader enthused. He alleged that manipulation of computer records at the port denied the government billions of shillings in revenue but the blame was wrongly shifted to other stakeholders, including freight forwarders.

He pointed out at the sickening corrupt practices by technicians at the IT section of TPA, a segment described as a “hatchery of swindlers’’ in which young technicians tempered with computer operations to steal billions of shillings.

"The IT people collude with dishonest bankers to steal billions on regular basis and pass the buck to agents. There is no way a freight forwarder agent can move a container from the port without a release order after verification of all payments,’’ Mr Ngatunga pointed out.

"On December 12, 2015, some of our members were invited for a meeting at the port. But to our surprise, the event turned out to be an abrupt humiliating arrest that landed some of our members in police custody," Mr Ngatunga recalled.

He lamented that the arrest was unjustifiable, noting that it was only an intimidation gimmick by TPA to cover up their wrongdoing.

“However, the good part of episode is that we are more united to stand together and tell the whole truth," he explained. However, TPA Communications Manager, Ms Janeth Ruzangi, said that investigations were underway to establish the truth by finding out what exactly transpired that led to the escalation of the reported tax evasion.

"There are cases which TAFFA members claim to have met their payment obligations but whose records are not seen in the TPA computer system.

The ongoing investigation will establish genuine cases and forged documents,’’ Ms Ruzangi noted. However, she wondered why the agents did not raise an alarm as soon as they discovered the anomalies on the issued invoices.

The TPA publicist said TPA was committed to continue rendering good services to the public and the probe will expose any illegal involvement of dishonest officials from TPA, TRA and TAFFA.

A TAFFA founder, Mr Matthew Haule, from the United Family Company Ltd, said since President Magufuli has proved the desire to stop pilfering at the Port of Dar es Salaam, TAFFA members should, therefore, offer him maximum cooperation to restore high-quality services at the country’s major sea gateway.

"It is disgraceful to hear that containers disappear from the port untaxed. Surprisingly such claims re-surface while nobody from the Tanzania International Container Terminal Services Ltd (TICTS) or Inland Container Depots (ICDs) has claimed loss of containers. This is inside work between the port and bankers," he alleged.

He added that they needed a joint meeting between their members (TAFFA) and TPA officials to present their cases before the minister or the prime minister.

We have been humiliated for so long for no apparent reason. There is no way a clearing agent can avoid paying taxes and continue with business. TPA records are extremely flawed," Mr Haule insisted.

Mr Deo Michael (TAFFA) said since TPA had proved to be unreliable partner in business, payments should be made through the Surface and Marine Transport Authority (SUMATRA) and the money channelled to the port to avoid cheating.

"The newly-introduced electronic payment system (e-payment) whereby invoices are issued online and payments concluded online opened the floodgates for the IT people at TPA to enjoy a rip-off, which might take time to be detected at the expense of the nation," Mr Michael observed.

He suggested that TPA invoice system should be linked with SUMATRA and the Tanzania Revenue Authority (TRA) for clarity and transparence.

"The masterminds, who seem to coordinate cheating at the port for both locally destined cargo and those in transit, must go. Enough of rampant diversion of cargo that annoyed many clients; clearance of all port charges must be done openly and the related documents must tally between the agents and TPA," he emphasized.

TAFFA lawyer Lambaji Madai said the association had prepared a case that has already been filed to the High Court, a move which would give members the opportunity to present their case and push TPA to respond to arguments from TAFFA. "The government action aims at ensuring proper revenue collection.

Therefore, there is nothing to fear about and TAFFA strongly supports President Magufuli for decisive measures,’’ he pointed out.