Govt paid 2.4bn/- to ex employees of Kilombero Sugar Company -Mpango

23May 2020
Henry Mwangonde
The Guardian
Govt paid 2.4bn/- to ex employees of Kilombero Sugar Company -Mpango

​​​​​​​THE government has paid a total of 2.4bn/- as benefits for former employees of the Kilombero Sugar Company whose contracts were terminated after the state privatised the firm in 2000.

Finance and Planning Minister Dr Philip Mpango.

Finance and Planning Minister Dr Philip Mpango told the parliament here yesterday in his written response to Mikumi MP Joseph Haule (Chadema) that the payment was only legitimate following the government re-assessment of employees demands.

The minister said the assessment considered clause of the workers’ terms of an employment contract and that the payment covered an upfront month salaries, holiday allowance, transport charges, luggage package, a one-month salary for ten years, salary increment arrears and unpaid contribution to social security funds (PPF and NSSF).

“A total of 2,404,984,239/00 was paid to those employees who lost their jobs. But the workers were not satisfied with the government payment pushing for a thorough assessment into the 2000 claims,” he said.

The legislator has alleged that some 3,000 employees lost their jobs to the government—ILLOVU investment deal. He said the victims of the deal are yet to be paid their claims two decades since they stopped working for Kilombero sugar company.

When will the government pay their benefits, Haule asked?

The minister said the re-assessment revealed that there was a deficit of about 11,830,019/00 in payments that the government had approved as benefits. The workers in their demand claimed they must be paid a long service award worth 1.27bn/- they had in a voluntary agreement with workers’ union—OTTU and the kilombero sugar management.

Regrettably, Dr Mpango said the government dropped the claims reasoning that the contract did not comply with the productivity and efficiency policy as it also didn’t consider any production goals which include increasing productivity and profit maximisation of the company.

“This could have enabled the employees to fully benefits as a reward to their hardworking and diligence,” the minister noted.

He stressed that the government had made all the required payments under the law to all former employees of the kilombero sugar company. The finance and planning minister said there are no unsettled claims thus far.

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