|
Union minister wrong on BoT - Zanzibar govt
2008-07-23 10:13:25
By Mwinyi Sadallah, Zanzibar
The Revolutionary Government of Zanzibar has opposed a statement issued by the deputy minister for Finance and Economic Affairs, Jeremiah Sumari, who was quoted as saying that the Isles government is not a BoT shareholder.
The press statement was issued in Zanzibar yesterday.
The Isles government said Zanzibar had provided initial capital for the establishment of the Bank of Tanzania in Zanzibar, through the contribution of its dividends and conversion of shares following the disbanding of the East African Currency Board.
The press release was issued by the Permanent Secretary in the Ministry of Finance and Economic Affairs, Khamis Mussa.
``Member countries of the East African Currency Board, after the dissolution of the Board, decided to form their own central banks. All the dividends and accrued monetary payments which were to be paid to Zanzibar were remitted to the Treasury of the Union government,`` the document read.
He said the matter should not be decided upon by taking into account the legal provisions alone, but the whole history of the formation of the Bank of Tanzania, plus the sourcing of its capital.
The Bank of Tanzania came into existence after the formation of the Union of Tanganyika and Zanzibar, which took place on April 26, 1964.
``Section 67 of the Bank of Tanzania lends credence
to this elaboration, because it recognizes the transformation of Zanzibar`s shares in the East African Currency Board into capital for BoT`s formation,`` read the document.
The Zanzibar government statement further stated that the clarification had been made in order to correct earlier remarks that contradicted the fact that Zanzibar had a role in the establishment of the central bank and its shares were believed to amount to 11 percent.
The Isles government further elaborated that the matter had been tabled as one of the contentious Union issues and proper sittings would come out with a correct solution.
In a related development, the Revolutionary Government of Zanzibar has opposed remarks made by the Minister of State in the Vice President`s Office, Mohammed Seif Khatib, who told the Bunge that the budgetary allocation from the Union government to Zanzibar had been increasing on each year.
``This has not happened. The increased contribution has only been made possible by increased budget support by development partners to the Union government,`` the statement clarified.
``Minister Khatib was wrong. The 28bn/- budget allocation from the Union government is not from the Union government per se, but it is equivalent to the 4.5 per cent budget allocation, such that the Union government remains with 95.5 per cent,`` the PS said.
The increased allocation is solely attributed to the boosted financial support from the development partners and not otherwise, concluded the statement.
|
