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.
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