THE Public Investment Committee (PIC), Chairperson, Dr Raphael Chegeni has urged Tanzania and Zambia governments to think of immediately amending a law that would enable Tanzania Zambia Railway Authority (TAZARA) recover in its long decades\u2019 debts and improve in operations.<\/p>\n
Briefing members of the press here yesterday, Mr Chegeni said that immediate action by amending laws would save the corporation, adding: \u201cWe need Tazara and we must change the mode of operations, because Tazara is important for both countries\u2019 economic growth.\u201d<\/p>\n
That was after members of the PIC were notified that Tazara was being blacklisted in the country, and not allowed to receive any loan from any financial institution as a result of being caged in heavy debts.<\/p>\n
That prompted PIC to embark on a special operation to meet all organizations and companies, where the government has less than 50 percent as shares.<\/p>\n
The development comes weeks after President John Magufuli directed all Parastatal organizations and institutions to pay dividends to the State.<\/p>\n
Last year the government received over 1.05trn\/-as dividends paid to it, and so far more than 27bn\/-have been collected since the president issued a 60 day ultimatum to 182 institutions.<\/p>\n
However, according to the Chairman, in the corporation where the Tanzanian government has 50 percent shares and Zambia also 50 percent, there was a great doubt whether it would pay its dividends.<\/p>\n
\u201cThis institution faces a number of challenges ranging from operating capital, active engines, railway line, communication problems, dilapidated infrastructures, poor spending to limited revenue collections,\u201d added Mr Chegeni.<\/p>\n
A statement from the Ministry of Works, Transport and Communication Permanent Secretary (PS), Dr Leonard Chamuriho, who also doubles as Tazara Chairman, the corporation\u2019s current operating engines are 10 down from 97 in 1979, adding: \u201cWe also have two additional engines, but are rented.\u201d<\/p>\n
As of December last year, Tazara had a total of 2,754 employees and estimated as 90 stationed at its Head Office in Dar es Salaam, 1,518 in operations in Tanzania and 1,146 in Zambia.<\/p>\n
On revenues and expenditures in 2015\/16 fiscal year, Tazara\u2019s net collection was 32.674bn\/- and spent 71.151bn\/-almost twice its income.<\/p>\n
In 2016\/17 financial year, it spent 77.781bn\/-and collected 61.594bn\/-. During 2017\/18 fiscal year, it spent 74.5bn\/-out of 87bn\/-it collected.<\/p>\n
Expounding, the PS noted that between 2016 and 2019, the government released Tazara at least 67.741bn\/-to enable it pay its staff salaries, development projects and support Fuga station.<\/p>\n
Despite this, he said that its outstanding debts still stands as 431.1million US dollars or about 689.789bn\/-.<\/p>\n
Meanwhile, according to the Director of Investment in the Office of Treasury Registrar, Lightness Mauki, Tazara\u2019s law enacted in 1995 stipulates that its Director General must come from Zambia, and the Deputy from Tanzania.<\/p>\n","protected":false},"excerpt":{"rendered":"
THE Public Investment Committee (PIC), Chairperson, Dr Raphael Chegeni has urged Tanzania and Zambia governments to think of immediately amending a law that would enable Tanzania Zambia Railway Authority (TAZARA) recover in its long decades\u2019 debts and improve in operations. Briefing members of the press here yesterday, Mr Chegeni said that immediate action by amending […]<\/p>\n","protected":false},"author":84,"featured_media":2099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3,8],"tags":[1248,1348,177],"class_list":["post-2098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-community","category-homepage-english","tag-pic","tag-raphael-chegeni","tag-tazara"],"yoast_head":"\n