Govt urged to conduct financial structuring

19Jun 2021
The Guardian Reporter
The Guardian
Govt urged to conduct financial structuring

MTAMA Member of Parliament Nape Nnauye yesterday urged the government to conduct a credit rating to evaluate the country’s ability to borrow and service debts which will give a picture on how to fund major strategic projects.

Speaking during a debate on the 2021/22 national budget, Nnauye said by doing this the country will have a better picture on the way forward on how to fund the projects, borrow and service the debts.

“We need to conduct credit ratings so that we have a clear picture on the way forward but also better plan what should be done to sustain the middle income status,” he said.

A credit rating is an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting.

The MP lamented delays by the government to confirm a Tanzanian national who has passed interviews for Director General of the Tanzania International Petroleum Reserves Limited (TIPER) following resignation of the French national.

According to Nnauye there were three candidates who applied for the position and a Tanzanian national has emerged successful but the government has remained mum since the company wrote a letter seeking concert from the government to confirm the individual.

Nnauye said it is time for the government to use the companies which it has shares such as Puma and Tipper to import fuel to make the shilling strong.

Opposition special seats MP Jesca Kishoa said the government should Change laws to allow the CAG to audit companies in which the government has less than 50-percent shares.

The legislator proposed the formulation of a public investment company which will be responsible for overseeing the companies where the government has shares.

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