Machinga Complex debt reach staggering 36bn/-

DAILY NEWS Reporter

DAR ES SALAAM Regional Commissioner, Paul Makonda addresses petty traders of the Machinga Complex in Dar es Salaam, about challenges including lack of spaces for business people to carry out their commercial activities at the complex. He promised them to oversee all operational activities and allocate spaces to people who deserve them. The building, which was constructed by National Social Security Fund (NSSF) at a cost of 12.7bn/-, has returned only 50m/- to the pension fund against expectations that the loan would have been repaid by now. On his right is Ilala District Commissioner, Eng. Raymond Mushi. (Photo by Mohamed Mambo)

THE Machinga Complex in Dar es Salaam has a debt amounting to 36bn/-, which is three times the value of the building, that is 12bn/-, supposed to be paid by business people using the complex, the Regional Commissioner (RC), Mr Paul Makonda, has said.

On a visit to the complex situated in Ilala Municipality on Monday, the RC directed investigations into the authenticity of the contract used in the construction of the complex, including looking at the actual construction costs.

He said the Regional Defence and Security Committee will evaluate the contract to determine the actual costs and the actual amount business people using the complex are supposed to pay, adding that the committee has agreed to form sub-committee that started working on the issue.

According to the RC, available statistics show that the money loaned out for the construction of the complex had been put at 12.7bn/-.

However, the complex now owes 36bn/-. “And you … the business people using the complex are supposed to pay. That is why we have decided to look deeper into this issue,” he explained.

He told the business people using the Machinga Complex that it would have first been prudent to hear the challenges they face, but stressed that once the issue at hand is addressed, he would do so.

Mr Makonda added that a preliminary report shows that there is much controversy surrounding the construction of the complex, including the possibility of high corruption.

The government recently disbanded the board of directors of the complex for failing to make the facility available to petty traders in the commercial city. Minister of State in the President’s Office - Regional Administration, Local Government - George Simbachawene disclosed the government’s move when speaking to business people.

Among other issues, the minister discussed challenges, including lack of spaces for business people to carry out their commercial activities. According to the minister, the decision to dissolve the board of directors was based on the fact that they left the building idle, leaving the beneficiaries (petty traders) operating from outside the complex.

The building, which was constructed by National Social Security Fund (NSSF) at a cost of 12.7bn/-, has returned only 50m/- to the pensions fund against expectations that the loan would have been repaid by now.

“I am disbanding the board of directors effectively from today… all people who work at the Machinga Complex are incompetent and all the tenants are deemed invalid,” he said. The minister, therefore, handed over building to the Dar es Salaam Regional Commissioner (RC), who will oversee all operational activities and arrange how to distribute stalls to people who deserve to occupy the building.

Dar es Salaam’s population is growing significantly fast, far outstripping business areas, which are insufficient to accommodate the large number of businesspeople conducting trade within the city.

The only available areas are not equipped well enough to handle the business population. Some of those areas are entangled in political scandals and are characterised with bureaucracy.

The construction of the complex, which has a capacity to accommodate more than 5,000 businesspeople, started in 2006 and ended in late 2008.

On Sunday, Mr Makonda announced to the media that a team of experts he formed had unearthed massive cheating in contracts entered between the Dar es Salaam City Council (DCC) and different agents, costing the government billions of shillings in revenue.

As a result of the massive cheating, the Dar es salaam RC has directed Prevention and Combating of Corruption Bureau (PCCB) officials to start investigations into the matter today and relevant authorities to take disciplinary actions against every official involved.

Contracts under discussions include the Ubungo Bus Terminal (UBT) contract entered between the Dar es Salaam City and an Agent to collect fees and the National Parking System (NPS) contract entered between the City and an Agent to collect parking fees in the central city.