Summary
· Controller and Auditor General (CAG) Charles Kichere revealed in his report released a few days ago that the operations of 16 government entities rely on loans because they have low capital compared to their actual needs
Dar es Salaam. The government plans to set up an investment fund in a
fresh bid to address lack of capital among public institutions whose current
requirements stand at Sh1.1 trillion.
This was revealed yesterday by
Treasury registrar Nehemiah Mchechu during his meeting with chairpersons and
heads of various government and public institutions, as well as government
agencies.
He said the fund to be established
within a year would be of paramount importance in raising money required for
investing in various areas.
Controller and Auditor General (CAG)
Charles Kichere revealed in his report released a few days ago that the
operations of 16 government entities rely on loans because they have low
capital compared to their actual needs.
“We are committed to addressing the
financial challenge that public institutions are grappling with. Presently,
some Sh1.1 trillion is required to keep things moving,” said Mr Mchechu.
In three years, he added, a total of
Sh3 trillion will be required to keep the public institutions going.
However, he urged chairpersons and
heads of public and government institutions and agencies to invest the money
wisely.
“If we have a good sense of what we
are investing, return on investment will be high and dividend to the government
will be promising,” asserted Mr Mchechu.
The number of government entities
and agencies, and public institutions that issued dividends to the government
decreased to 150 in the 2021/22 Financial Year compared to the preceding year’s
218.
However, not all numbers were
negative and this could be attested to the value of dividend under the period
of review increasing from Sh637.66 billion to Sh 850.28 billion.
Despite the increase in dividend,
the fact that the number of those who issued the same dwindled during the last
financial year, Mr Mchechu expressed his anger with a downward trend in terms
of the number of contributors to the government coffer.
“Some institutions are not
contributing, this is unacceptable. You need to be proactive. You don’t need to
be pushed (to pay a dividend),” said Mr Mchechu.
He said going forward, the country
needed strong institutions that will be at the centre when it comes to helping
the government amid unexpected disasters.
In a bid to scale up efficiency of
public institutions he also urged their board chairmen and heads to have an
appealing strategic and business plan.
He also directed them to have
succession planning so that institutions could have right leaders in place
should a change happen.
The participants of yesterday’s
meeting with the Treasury Registrar commended the government’s plan on card to
transform public institutions.
Tanzania Civil Aviation Authority
(TCAA) director general Hamza Johari said, “I commend the government’s great
strategy and vision that are meant to take us (government and public
institutions) to the next level.”
However, he said, for the dream to
come true, there should be a comprehensive strategy in place that will take on
board all potential stakeholders from the top.
“The strategy should touch all decision
makers if we are to achieve what we want to achieve,” said a soft-spoken
Johari.
Tanzania Commercial Bank (TCB) board
chair Edmund Mndolwa said if public and government institutions were to perform
better, political interference should stop.
Dr Mndolwa called for a seminar that
will bring together boards of directors’ chairmen, heads of institutions and
what he called “bosses” from various ministries.
“We all need to know the demarcation
of our responsibilities,” he asserted.
Air Tanzania Company Limited (ATCL)
managing director and Chief Executive Officer Ladislaus Matindi echoed Dr
Mndolwa’s sentiments.
“If we want to do business, let’s do
business. Nothing else (that is likely to have adverse effects) is needed in
between,” said Mr Matindi.
He said it was high time the country
borrowed a leaf from Ethiopia, Turkey and United Arab Emirates (UAE)’s modals;
they used to have strong national flag air carriers---Ethiopian Airlines,
Turkish Airlines and Emirates respectively.
Occupational Safety and Health
Authority (Osha) board chairperson, Dr Adelhelm Meru said for the public and
government institutions to increase their efficiency, they should be well
staffed.
“Financial resources alone will not
do. We need investment in human capital,” urged Dr Meru.
Representing the ATCL board chair,
Mr John Njawa, who is the board member, said for the government's good strategy
to be fruitful, there should be political sustainability.
“In Africa we have been facing a
problem of unpredictability due to the fact that new leaders have been coming
with new changes and burying the initiatives of their predecessors,” said Mr
Njawa.
“That is why investors view Africa
as not a sustainable place for a long-term investment.”
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