Govt forms team to revise meat company contract

03Dec 2017
The Guardian Reporter
Guardian On Sunday
Govt forms team to revise meat company contract

THE Minister for Livestock and Fisheries, Luhaga Mpina, has formed a team of five people to revise the contract for operating the Tanzania Meat Company (TMCL) in Dodoma.

THE Minister for Livestock and Fisheries, Luhaga Mpina

The team will look into whether the company, which is being run by the National Ranching Company (NARCO) in collaboration with National Investment Company (Nicol), is being operated in accordance with the investments of the two companies.

The team includes government employees from the Livestock and Fisheries ministry, the office of the attorney general and those from the office of the registrar in the ministry of finance.

He said the team will also ensure that acquisition of the 49 per cent shares belonging to NARCO and the 51 per cent shares of Nicol has followed all the procedures and the value of the investment.

The minister reached the decision on Friday following a visit to the meat company where he witnessed a number of challenges facing the firm.

According to the minister, there were challenges regarding operations which the team needed to look into.

He said the challenges had led the government to incur losses since the agreement of operating the meat plant between the two firms was sealed.

“The government has not been getting its portion of the profits for all the eight years of the contract,” the minister said.

He said according to the contract it is to be reviewed after every five years, but such review has never been made, saying this was against the country’s laws.

According to him, the firms need not wait for customers, but instead they need to keep animals and buy from customers for the abattoir.

The minister also said there were challenges in the management, making customers to shun the abattoir.

He directed that before December next year at least 19,000 hectares must be prepared for grazing instead of the current 3,000 hectares.

The directive comes in the wake of information he received from the Kongwa ranch manager Euzebius Mtayabaru that of the 38,000 hectares available only 3,000 was in use while 35,000 hectares remained idle.

The minister also directed that as of December next year the number of livestock at the ranch be increased to 20,000 cattle, 5,000 sheep and 5,000 goats. Currently only 8,647 cattle, 1,438 goats and 5,350 sheep including eight horses are reared on the ranch.

Top Stories