CRDB Bank Plc pays out 17bn/- in dividends to the government

11Aug 2020
The Guardian
CRDB Bank Plc pays out 17bn/- in dividends to the government

​​​​​​​FINANCE and Planning Minister Dr Philip Mpango yesterday received a 17bn/- cheque in dividends from CRDB Bank, in which it has a stake.

The minister was handed a dummy chegue by the board chairman, Dr Ally Laay at a ministerial function here, attended by top officials from shareholding agencies and institutions.

Dr Mpango applauded the bank for remitting returns to the government as well as recording good financial performance. He said the good performance has contributed to increased dividends to the government and shareholders.

“This is a clear indication that CRDB Bank keeps growing with stable business strategies. Such performances give hope to investors and Tanzanians that the bank offers quality banking services to the community,” the minister affirned.

The dividend finance will be directed to implementation of the strategic projects highlighted in the 2020/2021 budget priorities, he said.

He applauded the bank for good performances in this year’s first half financial reports where it has recorded a 15 percent increase in benefits, reaching 70.4bn/- from 61.1bn/- recorded the same period last year.

Financial institutions play a vital role in the country’s development, he declared, urging the bank to reduce interest rates to promote economic activities.

“May I congratulate you for reviewing loan interest rates. Other banks and financial institutions need to   emulate the move to speed-up the country’s development,” he stated.

Dr Laay said the dividends given to the government form part of the bank’s profit after tax which reached 120.1bn/- from profits accrued from its institutions in the past year. The bank will continue to offer quality financial services to customers and investors, he vowed.

“During our stakeholders’ meeting in June, we approved the 17bn/- dividends to the government, an increment of 112.5 percent. This makes a total of 44.4bn/- dividends provided to the government so far,” he stated.

Abdulmajid Nsekela, the bank’s managing director, promised the minister that the bank will continue to work closely with the government and facilitate availability of financial services across the country.

The bank has invested in digital financial services with CRDB Bank agents, simbanking, simaccount and internet banking, he said, pointing out that digital banking services are convenient and assure customers of fast services.

Selemani Jafo, the Minister of State in the President’s Office (Regional Administration and Local Government) has meanwhile received dividends from Mbinga, Lindi, Shinyanga, Mufindi, Chunya and Rungwe municipal councils.

Jafo appealed to other districts and municipal councils to broaden their revenue base by investing in various projects and contribute to the development process.

Jenista Mhagama, the Minister of State in the Prime Minister’s Office (Policy Coordination and Parliamentary Affairs) commended national social security funds—PSSSF, NSSF and ZSSF for investing in CRDB Bank.

Parliament enacted the Miscellaneous Amendments to the Finance Act, 2011 requiring public agencies to remit 15 percent of their gross revenues to the Treasury as dividends.

President John Magufuli earlier this year declared that the government has invested 59.6trn/- in 266 firms which are wholly owned by the state or the government holds a major stake, but only 79 contributed to the central government’s coffers in the 2018/19 financial year.

In November 2019, the president issued a two-month ultimatum to 187 state-owned companies and institutions to deliver dividends and revenue shares or else their managements would be dissolved.

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