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Wednesday, June 22, 2016

Special team to probe losses in extractive sector

DAILY NEWS Reporter in Dodoma
Minister of State, Prime Minister’s Office (Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled), Ms Jenista Mhagama.

A SPECIAL probe team, including officials from the Ministry of Finance and Planning and Tanzania Revenue Authority (TRA), has been formed to investigate the massive revenue loss in the extractive industry.
The team, which also includes the Commissioner for Labour, is as well working on claims of lack of accountability in mining activities and large scale farming whereas the employees are improperly paid and the employers preparing two different salary slips for the workers.
This was revealed here yesterday by the Minister of State, Prime Minister’s Office (Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled), Ms Jenista Mhagama.
She was reacting to a supplementary question by Mr Joseph Kasheku Musukuma (Geita-CCM) who wanted to know the initiative taken by the government as far as early retirement benefits for the workers in the mining industry are concerned.
Ms Mhagama said it has come to their attention that some employers in the extractive industry are evading tax by having two salary slips for the employees -- the real ones, which are not submitted to the government -- and the doctored ones, which show low salaries compared to the reality on the ground.
“As a result, it is not only the government, which is losing revenue but the employees as well when it comes to their terminal benefits -- as they end up being paid what has not been meant for,” she said.
The special team is investigating the matter so that all parties in the matter observe accountability and transparency. On the retirement benefits to the workers in the extractive industry, Ms Mhagama said it is true that the nature of their jobs warrants them to an early retirement; but that for the time being, the social security funds law did not have room for that.
However, she said, they are charting out modalities to see if the law can be looked at to allow the workers in the extractive industry and large-scale farms to be awarded with their benefits when they retire from the industry voluntarily.
Answering the main question by Ms Salome Makamba (Special Seats-CHADEMA) on measures taken by the government to end and control improper firing of employees in the mining industry and compensation to those who are injured while on job, the Deputy Minister in the ministry, Mr Anthony Mavunde, said compensation will be issued starting July 1.
Moreover, he insisted on the need for both public and private employers to pay the stipulated percentage of wage bills to the fund, failure of which they will pay 50m/- fine and a jail term to the institution’s executive officer.
He said a worker contracting occupational disease will be paid while disability was not a reason for dismissal.

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