JPM tells public institutions: Pay due dividends to the govt or else

22Jun 2018
Henry Mwangonde
The Guardian
JPM tells public institutions: Pay due dividends to the govt or else
  • Directs Treasury registrar to list down those that haven’t been paying up despite being directed by law, and put them all on notice for possible legal action

PUBLIC institutions that have failed to pay dividends to the government as required by law are facing the risk of legal action being taken against them, President John Magufuli asserted yesterday.

Speaking after receiving a 1.5 billion/- dividend from the Tanzania Telecommunications Company Limited (TTCL) in Dar es Salaam, the president said more than 50 public institutions are not paying dividends to the government despite being directed by the law.

He tasked the Treasury registrar to list them all down and put them on notice.

“Make them pay even today... do all you can to ensure they pay what they are supposed to pay to the government. If the law directs you to fire or suspend some people on this matter, don’t hesitate to do so because we want to build a strong economy,” Magufuli said.

He commended TTCL for leading by example and called on other public institutions to emulate them, saying many developed countries were treading the same path.

The event was also used to mark the start of TTCL’s new drive to expand its services countrywide. President Magufuli was seen communicating via video conference call with Prime Minister Kassim Majaliwa in Dodoma and Zanzibar’s second vice president Self Ali Iddi.

“From now on, I will be communicating with regional commissioners and district commissioners through video conference calls to minimise transport costs,” the president said.

He directed officials in government institutions to start using TTCL services as a way of ensuring it remains a profit-making company for the benefit of Tanzanians as a whole.

TTCL will now be a key institution in strategic security management, he added.

TTCL executive director Waziri Kindamba said the president’s directives on various reforms have helped the once-limping company to achieve what it has so far.

“The fact that we have been allowed to access bank loans has enabled us to use the money for carrying out various projects that have had an impact on the company’s profit margin,” Kindamba stated.

Parliament last year approved new legislation that transformed TTCL from company status to a fully established, state-of-the-art business corporation.

The Tanzania Telecommunication Corporation Act, 2017 was aimed at boosting the previously poorly-performing firm to a level where it can start competing seriously with other telecom companies in the country.

For about 15 years up to 2016, TTCL was jointly owned by the government with 65 per cent and Bharti Airtel from India with 35 per cent. The joint venture is now reported to have come to an end in June of that year, after the government snapped up all Bharti Airtel shares through a 14.7 billion/- payment to the Indian company.

Top Stories