PARLIAMENTARY Standing Committee on Public
Investment (PIC) has directed the Treasury Registrar (TR) to come up
with a special set-up, which will guide public institutions to pay
dividends to the government.
PIC Chairman, Mr Raphael Chegeni and his committee gave the directives here yesterday shortly after going through the performance report by the UTT Asset Management and Investor Services (UTT AMIS).
“Treasury Registrar, there must be a special formula on dividend payment and should not be based on the wish of shareholders or board of directors as it has been done before,” he said.
Adding, “You have to draw up a dividend payment format, so that the government could get its due dividends from entities basing on shares it owns, if it is one third it must be so for all, not as per one’s wish, and whoever fails to comply, there must be strong explanations,” he said.
Mr Chegeni said most of the public entities have been getting huge revenue before tax, but their spending are unmanageable, “TR, we need quarterly reports so that we can be able to trace their operations,” he insisted.
He also advised the TR to grade the public institutions into categories, so as to determine the well performing organisations, poor performing organisations and those in deathbed.
“Categorisation will help us to know where we need to put more focus and support them to regain the lost glory. We will also be able to set strategies to monitor and enable those which perform well to maintain the record,” he noted.
They also advised the TR to see into the possibility to merge public institutions with almost the same operations to reduce running costs.
“Only those we think have a reason to remain, we should do so, since some are running same businesses; let’s do a market search and take hold of those in need,” said Mr Chegeni.
PIC also underscored the need for UTT-AMIS to conduct awareness programmes for the public and the parliament as well, so that their operations could be well understood. “And, why should you choose to bring us a huge report? You thought we were not going to read it? For your information, we have read each and every page, most of the items do not reflect reality, go and work on it,” said Mr Chegeni.
Commenting on the matter,Mr Richard Ndasa (Sumve- CCM) said public institutions must offer quality services, dividend, and employment opportunities and pay the needed revenues.
“TR, you must convene a meeting between the committee and executives of all public institutions; we need to understand why some were not paying dividends, until when the Head of State decided to accolade some of them.
From that time we started witnessing a rush,” he said. However, Mr Ndasa said it is not healthy for a public institution to stay for two years without board of directors, saying the trend has delayed some key decision.
Ms Ester Mmasi (Special Seats-CCM) called for fresh writing of the UTT AMIS Strategic Plans, saying it left many questions than answers.
She said UTT-AMIS must explain how they will operate with the merge of the social security funds. Responding to some questions, the TR, Mr Athumani Mbuttuka said he will work on all directives.
Earlier, UTT AMIS Chief Executive Officer, Mr Simon Migangala said his office has paid more than 20.9bn/- revenue since they were set in place in 2013 and in the past financial year, they paid 500m/- to the government as dividend
PIC Chairman, Mr Raphael Chegeni and his committee gave the directives here yesterday shortly after going through the performance report by the UTT Asset Management and Investor Services (UTT AMIS).
“Treasury Registrar, there must be a special formula on dividend payment and should not be based on the wish of shareholders or board of directors as it has been done before,” he said.
Adding, “You have to draw up a dividend payment format, so that the government could get its due dividends from entities basing on shares it owns, if it is one third it must be so for all, not as per one’s wish, and whoever fails to comply, there must be strong explanations,” he said.
Mr Chegeni said most of the public entities have been getting huge revenue before tax, but their spending are unmanageable, “TR, we need quarterly reports so that we can be able to trace their operations,” he insisted.
He also advised the TR to grade the public institutions into categories, so as to determine the well performing organisations, poor performing organisations and those in deathbed.
“Categorisation will help us to know where we need to put more focus and support them to regain the lost glory. We will also be able to set strategies to monitor and enable those which perform well to maintain the record,” he noted.
They also advised the TR to see into the possibility to merge public institutions with almost the same operations to reduce running costs.
“Only those we think have a reason to remain, we should do so, since some are running same businesses; let’s do a market search and take hold of those in need,” said Mr Chegeni.
PIC also underscored the need for UTT-AMIS to conduct awareness programmes for the public and the parliament as well, so that their operations could be well understood. “And, why should you choose to bring us a huge report? You thought we were not going to read it? For your information, we have read each and every page, most of the items do not reflect reality, go and work on it,” said Mr Chegeni.
Commenting on the matter,Mr Richard Ndasa (Sumve- CCM) said public institutions must offer quality services, dividend, and employment opportunities and pay the needed revenues.
“TR, you must convene a meeting between the committee and executives of all public institutions; we need to understand why some were not paying dividends, until when the Head of State decided to accolade some of them.
From that time we started witnessing a rush,” he said. However, Mr Ndasa said it is not healthy for a public institution to stay for two years without board of directors, saying the trend has delayed some key decision.
Ms Ester Mmasi (Special Seats-CCM) called for fresh writing of the UTT AMIS Strategic Plans, saying it left many questions than answers.
She said UTT-AMIS must explain how they will operate with the merge of the social security funds. Responding to some questions, the TR, Mr Athumani Mbuttuka said he will work on all directives.
Earlier, UTT AMIS Chief Executive Officer, Mr Simon Migangala said his office has paid more than 20.9bn/- revenue since they were set in place in 2013 and in the past financial year, they paid 500m/- to the government as dividend
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