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CAG: Enact law on unclaimed institutes` assets

17th April 2012
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CAG Ludovick Utouh

The Office of the Controller and Auditor general has advised the government to institute a law to instruct public institutions to surrender unclaimed assets to the Treasury.

CAG Ludovick Utouh in his annual general report on the audit of public institutions and other bodies for the 2011/2012 financial year said there were unclaimed assets which have stayed for a long period of time by respective beneficiaries who may not be traced.

He stressed that such assets must be surrendered to the Treasury as government revenue as in the case with deposits that have remained unutilised for more than five years “and are no longer to be utilised.”

Utouh said in his report that such unclaimed funds could be deposited in the proposed investment fund to be used as a sourced of investment finance.

He said there were people who had small dividends in various institutions but were not claiming because they are of small amount and such amounts when put together they made something big.

“We need such dividends to be collected by the government and not individual institutions. We have been seeing individual institutions listing them as if it is their properties,” Utouh said, adding, “they are doing so because there is no law that compells them to surrender to the same to the government.”

He mentioned such funds as deposits by banks customers, unclaimed shares with Dar es Salaam Stock exchange, and statutory deductions in respect of terminated or deceased employees that continue to be remitted to the social security funds, health insurance fund and dividends accruing from listed companies with the bourse.

In another development, the CAG said lack of awareness on part of Tanzanian companies is the cause for the DSE to have limited number of listed firms.

He advised the government to pass a law requiring potential companies in the country to be listed in the bourse.

He named some of the companies that must be listed as those dealing with mining, cement and beverages.

“By having a big number of players, the stock market can be a good source to finance the country’s development through sale of shares,” said Utouh in his report.

 

SOURCE: THE GUARDIAN
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