Much-awaited ‘fast buses’ project takes off on Tuesday

LUDOVICK KAZOKA

AS the much-awaited Bus Rapid Transit (BRT) starts operating on Tuesday, the Dar es Salaam City Council (DCC) demands back its shares that were ‘illegally’ sold to Simon Group, a BRT co-operator, in Usafiri Dar es Salaam (UDA).

The Mayor of Dar es Salaam, Mr Isaya Mwita, hinted that the city was the legal owner of UDA as it did not declare to Business Registration and Licensing Agency (BRELA) over ceasing to own the company.

Mr Mwita told a press conference in Dar es Salaam on Monday that there wasn’t any record showing the Treasury Registrar, a partner shareholder to the DCC, approving the sales of 51 per cent to the company.

“There wasn’t any exercise to evaluate the properties owned by UDA before selling the shares to Simon Group,” said the mayor while briefing journalists on deliberations reached by the city council’s meeting on May 2.

Mr Mwita further pointed out that sales of the shares to Simon Group did not get the green light from the Minister responsible for Local Government Authority as the laws stipulate; noting that Simon Group violated the Public Procurement Act. He observed that the DCC had to seek permission from Consolidated Holding Cooperation (CHC) before selling UDA as the company is under supervision of the Presidential Parastatal Sector Reform as a specified company.

Mr Mwita called on the Treasury Registrar to sell 49 shares held by the government to Simon Group instead of the DCC shares ‘’as the city council should control public transport in the city’’.

Last month, the Treasury Registrar, Mr Lawrence Mafuru, said the Dar es Salaam City Council’s (DCC) ownership in Usafiri Dar es Salaam (UDA) ceased following Simon Group’s payment for the 51 per cent shares in the company. He told reporters journalists in Dar es Salaam that reports from the DCC indicate that council had 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.

“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, more evidence that the council has received the amount, which he declined to state, saying the 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 had in 2015 sought a court injunction restricting the government from involvement in UDA activities. However, it was later established that the claimed sale of 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.