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Badilisha Lugha KISWAHILI

Parliament intervention sought to secure UDOM construction loan

19th April 2012
The University of Dodoma

The National Assemnly been been called on to press the government to sign a contract with the National Social Security Fund (NSSF) for the construction of the University of Dodoma (UDOM).

Tabling a Parastatal Organisations Accounts Committee (POAC) report for the financial year ending June 30 2010, the committee chairman, Kabwe Zitto, said the committee had decided to press the government because of an increase in interest rates which results from a debt the government secured from the fund for the construction of UDOM.

“It has to be known that NSSF uses members' money to fund such projects. In this case therefore the money of the members needs to be protected effectively,” he stressed.

He reminded the House that the committee had called on the government thrice to sign a contract with the fund regarding the UDOM construction loan but nothing had come out of it.

“The committee wants an explanation from the government on this matter and the committee requests the National Assembly to instruct the government to sign the contract with NSSF in order to recover the debt and for the debt to be safe," he said.

NSSF has not been collecting debts from many government projects it has been funding. According to the report, the CAG had established deficiencies in the ongoing monitoring of the UDOM investment following the fund’s failure to sign a financing agreement with the government.

“The fund spent 234.054bn/- in the second phase project but has only signed a contract for Phase I of 35.218bn/-.

The CAG said buildings for phase I were completed and put into use in September 2008 but the fund was yet to collect rental fees or repayment of the loan from the government which had accrued interest amounting to 14.157bn/-.

Other funds which had invested in UDOM under same contract terms, with balances as per June, last year, are PPF 39.987bn/- , PSPF-105.921bn/-, LAPF-22.030bn/- and NHIF 13.403bn/- totaling 181.343bn/-.

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