Mwananchi Communication Limmited
Tanzania has set aside funds to bailout cash strapped national carrier Air Tanzania Company Limited (ATCL) Deputy Minister for Works and
Transport, Atupele Mwakibete, told Parliament in Dodoma on Monday.According to him the government has allocated over Sh10 billion to settle debts owed to Air Tanzania Company Limited (ATCL) workers.
Mwakibete said the government is all set to clear the debt which
were as a result of not submitting workers’ NSSF contributions and has been
putting in place mechanisms to prevent fresh debts.
He was responding to a supplementary question from a special seat
MP, Angelina Malembeka, Atupele saying the remaining contributions to the
social fund will be paid in this financial year.
The lawmaker also wanted to know when ATCL pensioners will receive
their benefits.
ATCL generated over Sh4.86 billion in debt for not submitting
employees’ contributions to the social security funds.
In March 2021, the CAG Charles Kichere named ATCL as one of the loss-making
companies which has incurred losses worth Sh150 billion in the past 5 years.
"We conducted an operational audit of ATCL and identified the
following, by June 30 the Government had purchased eight aircraft for Sh1.2
trillion in an effort to revive the airline."
"The aircraft are owned by the Government and ATCL is leasing
them. In addition to purchasing the aircraft for five years 2015/2020 the
Government has also provided Sh153 billion for operational and development
activities."
The CAG Charles Kichere went on to warn that ATCL flights
traveling abroad run the risk of being impounded because of the huge debts and
the related interests.
Wheras in October, the same year, Air Tanzania Company
Limited (ATCL) the Parliamentary Accounts Committee (PAC) said the
carrier had borrowed Sh896 billion without the approval of the Ministry of
Finance and Planning as required by the law
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