By Nelly Mtema in Dodoma
FOUR government
institutions have handed over a total of 2.75bn/-as dividend to the
Minister of Finance and Planning, Dr Philip Mpango, following President
John Magufuli's call to 187 institutions that
failed to present their
dividends to the government last week.
The Head of State gave 60 days to 187 institutions to deposit the dividend or their leaders and board of directors face an axe.
The institutions
that handed over the dividends are Self Microfinance (200m/-), Tanzania
Postal Corporation (350m/-), Tanzania Railways Corporation (1bn/-) and
the Tanzania Investment Centre (1.2bn/-) The Minister maintained that he
will implement the President's order after the given ultimatum of 60
days.
"I will make sure the orders are implemented after 60 days, no public institution will be spared on this," he said.
On his part,
Treasury Registrar, Athumani Mbuttuka said all public entities have been
served with letters to abide to the President's order immediately.
During the event to
receive dividends on Sunday, President Magufuli received dividend and
surplus contribution from 79 government institutions, authorities and
agencies worth over 1.05trn/-, He said the government had invested at
least 59.6trn/-to a total of 266 institutions.
"Unfortunately only
79 institutions are returning the favour," he said. Adding: "The time
to plead with each other is over and we cannot tolerate seeing the
government continuing to lose."
He accused the
non-performing firms of embezzlement of public funds by spending in
luxury vehicles, hotels as well as expensive board meetings that had
limited their ability to generate profits and pay dividend.
No matter the sum
of shares, President Magufuli wants to see the government benefiting
from its decadeslong investment. The office of the treasury registrar
released a list of 52 public institutions whose contribution was above
300m/.
Tanzania Ports
Authority (TPA) emerged a leading payer after submitting a cheque of
169bn/- in the dividend. Some other institutions that paid-off their
share with their contribution includes TCRA (85.855bn/-), TANESCO
(1.400bn/-), DAWASA (1.395bn/-), GBT (95bn/- ) TPDC (66.400bn/-), TANAPA
(44.438bn/-), NCAA (23.538bn/-) Ewura (7.212bn/-) and TPC (14.502bn/-).
The contributions
were for the financial year ending June 30, 2019. During the financial
year 2019/20, the government had projected to collect 33.1trn/-in which
59.7 per cent of the expected collection or 19.1trn/-would come from tax
sources.
Contribution of
government institutions and dividend forms 50 per cent of non-tax
revenues. Records remain clear that the contribution has risen to
1.05trn/-this year down from 161.04bn/- in 2014/15 financial year where
only 24 institutions were involved.
In 2015/16 there
were 25 firms that paid 249.5bn/- , in 2016/17 it jumped to 637bn/- from
38 firms and in 2017/18 the number of institutions reached 40 paying at
least 842.13bn/-.
Although the trend
of public entities contributing increased with time, both the level of
revenue collections remains below the government target.
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