ATCL debts out next week

FATMA ABDU

AIR Tanzania Company Limited (ATCL) exact amount of debts will be known next week after the Controller and Auditor General (CAG) office completes review of the debts of the national flag carrier.

ATCL Chief Executive Officer, Ladislaus Matindi, told the ‘Daily News’ over the telephone yesterday they were expecting the CAG office report of special review of the debts next week for further deliberation by the government. "We will know the amount of the debt next week after CAG report is completed.

For the time being the exact amount is not known," he said. The government was reportedly finalising mechanisms to absorb at least 133bn/- accumulated debts for the national carrier in 2015 to make it attractive for investors.

The late Minister for Transport, Samuel Sitta is quoted by media as saying the massive debt was cited as a major reason that past efforts to privatise the airline failed. The debt was, however, reduced by a half after a special verification process by the government.

The ATCL CEO said they had already cleared its outstanding debt to Zanzibar Airport Authority as directed by the government after being verified by the government.

He did not disclose the amount. The Works, Transport and Communications Minister Pro 356800006fessor Makame Mbarawa had said in Parliament last year that ATCL owed the Zanzibar Airport Authority 230.7m/- as outstanding landing fee.

The money is among accumulated debts of the struggling state-owned airline, which have been submitted to the government.

In Dar es Salaam last Tuesday, the Deputy Minister of Works, Transport and Communication, Edwin Ngonyani, directed Air Tanzania Company Limited (ATCL) to clear its debts so as to improve its financials.

He was speaking when Land and Communication Committee from Zanzibar visited ATCL headquarter in Dar es Salaam on Tuesday, with the aim of learning from the experience of the national flag carrier.

He said the focus of the newly revived ATCL is on profitability and directed the management team to make sure they stuck to the goal