Treasury Registrar sets record with 552pc increase in annual dividend collection
By Smart Money Reporter
ANNUAL dividend and fees collections by Treasury from companies which have state shares have increased by 552 percent from 161.04bn/- in 2014/15 in 2014/15 to 1.05trn/- to 2018/19 fiscal year.
Treasury Registrar, Athumani Mbuttuka told President John Magufuli this week during a dividend handing over ceremony at State House in Chamwino that of the amount, 683.23bn/- which was collected during the year ending June 2019 was deposited in Treasury Registrar’s account while 370.59bn/- was deposited directly into government’s central account.
Mbuttuka named Tanzania Ports Authority, Gaming Board of Tanzania, Tanzania Civil Aviation Authority and Tanzania Petroleum Development Corporation as parastatals that directly deposited their amounts in the government’s central account.
“The non-tax income comes from divided, 15 percent contributions and social services payments,” Mbuttuka said while paying tribute to President Magufuli for spearheading a campaign to reclaim government shares at Usafiri Dar es Salaam Rapid Transit (UDART), Airtel Tanzania, Acacia Mining Plc, Meco Ltd, among others during the year.
He further noted that talks are going on at various other private companies to ensure that Treasury shares are returned or complete takeover of such institutions which had been usurped by dishonest investors.
“Treasury Registrar’s office has the responsibility to supervise performance at 266 public companies and institutions, follow up efficiency at 341 agriculture estates, privatised companies and institutions after the abolition of Consolidated Holdings Corporation,” he noted.
The Treasury Registrar further noted that his office is poised to increase annual collections because the majority of the 266 companies in which the state has a stake are not paying any divided nor submitting any contributions as required by signed contracts.
“The number of companies paying dividend and other contributions to Treasury remain dismal compared to their actual numbers in operation. Forty such companies and institutions out of 80 which are supposed to pay divided failed to do so because of making losses or having very small capital,” Mbuttuka added while pledging to continue pressing managements and boards of the relevant institutions to deliver on their contracts.
Speaking after receiving the dividend, President Magufuli gave managements and boards of the non-performing state companies and institutions to pay up in 60 days or face the sack. “Under my administration, it will not be business as usual, parastatals and corporations that don’t deliver will have their management teams and boards of directors dismissed.
Dr Magufuli warned that many state enterprises and privatised companies fail to pay dividend or any contributions to Treasury because of mismanagement and embezzlement of public funds which often benefit senior managers and board members.