NICOL under 10bn/- ‘inherited’ loss probe

FAUSTINE KAPAMA

THE National Investment Company Limited (NICOL) is under investigation on the 10 billion/- loss allegedly occasioned during the company’s former management, the newly-appointed NICOL’s Manager, Mr Kinoni Wamunza, said in Dar es Salaam yesterday.

He told a news conference that already KPMG, who are Independent External Auditors, have submitted their draft report on the forensic audit commissioned by the government to the new management of the company and results of the findings would be released in two weeks to come.
The government owns 49 per cent shares in NICOL. “The report will also be submitted to the Board of Directors with the Tanzania Meat Company Limited, a subsidiary company with NICOL and actions will be taken according to the findings given,” Mr Wamunza stated.
Earlier, in a briefing on NICOL shareholders meeting held on Saturday last week, the company’s new Chairman, Dr Gidion Kaunda, said that the audit financial report for the period ending December 31, 2009 showed that NICOL had accumulated losses totaling 10bn/-.
He said the position contradicted the claims by the former Chairman of the Board of Directors, Mr Felix Mosha, who had said that NICOL was financially sound and making profit.
According to him, it was also revealed that due to alleged gross mismanagement of NICOL and its subsidiaries that prevailed during the tenure by Mr Mosha as chairman, it became necessary for the management to commission forensic audit for Tanzania Meat Company Limited.
“Apart from financial mismanagement, government taxes were not paid and employees’ social security was not remitted. Reckless investments made without carrying out due diligence will be subjected to thorough review to establish their viability and appropriate action to be taken for each,” he said.
Flanked by other top officials, including advocate Benjamin Mwakagamba, the NICOL chairman pointed out that during presentation of report, shareholders were also informed of the achievements and challenges faced by the Interim Management from the date of their appointment in 2012.
Among most disruptive occurrences to the interim management’s work, he said, were attributed to 41 court cases, the latest being the one decided on November 25, this year, lodged by TPSF Vice- Chairman Salum Shamte and his associates unsuccessfully attempted to prevent the annual general meeting.
Dr Kaunda pointed out that it was also explained that Mr Mosha directly or indirectly initiated most of the cases and the reason being that he refused to recognise the shareholders’ decision as well as court decisions he himself had filed and persistently claimed to be the legitimate chairman of NICOL.
Despite all the challenges encountered, he said, since assuming responsibility for NICOL leadership operations by the Interim Management, there has been a progressive improvement of the company’s financial performance.
He said that from 2012 under the Interim Management, profitability has been increasing annually -- rising from 472m/- to 1.026bn/- in 2015. He said further that equity has progressively risen from 30.8bn/- in 2011 to 94bn/- in 2015.
“All this was made possible by rigorous control of costs, prudent and sound investment in the equity market and minimisation of risky investments,” the company’s chairman added