Dar City Council sells shares in UDA

DAILY NEWS Reporter

Treasury Registrar (TR) Lawrence Mafuru

DAR ES SALAAM City Council's (DCC) ownership in Usafiri Dar es Salaam (UDA) has officially ceased following Simon Group's payment for the 51 per cent shares in the company.

Treasury Registrar (TR) Lawrence Mafuru told journalists in the city yesterday that reports from the city council indicate that DCC has received the money and certified the transaction.

"The legitimate owners of UDA are now the government (49 per cent) and Simon Group (51 per cent)," said Mr Mafuru, noting that the DCC no longer owns shares in the transport company.

UDA, therefore, partners with the government in operating the Bus Rapid Transit (BRT) project, with the government controlling the project's revenues. Earlier, the city council sued Simon Group, demanding payment for the 51 per cent shares by today.

"Had Simon Group not paid the money by April 30, they would have forfeited the shares, but reports we have show that they have paid," said Mr Mafuru.

He said Tanzania Revenue Authority (TRA) has started computing the tax liability from DCC, another evidence that the council has received the amount, which he declined to state, saying Dar es Salaam City Mayor was well placed to provide it.

After the tax computation and payment, the Business Registration and Licencing Agency will transfer ownership to the government and Simon Group.

Simon Group in 2015 sought court injunction, restricting the government from UDA activities, but it was later established that the claimed sale of the 41 per cent government shares in the company was illegal, leading to the case dismissal. The government is now fully involved in UDA.

The TR said as per the Controller and Auditor General (CAG) directive on strict control over government assets, his office will keep a close eye on UDA, which is the majority shareholder in the BRT project. "We will start by addressing all the wrongdoings in this project and effectively manage its operations," said Mr Mafuru.

The controversies in UDA ownership started after the board of directors attempted to sell the government's 49 shares in the company without having the legal mandate to do so.

Only the cabinet has powers to authorise sale of government shares in any company but, according to the TR, there is no records showing that the cabinet had ever passed that verdict.