MPs want goverment to take up TPC debts  for parastatal to grow

11Jul 2018
James Kandoya
The Guardian
MPs want goverment to take up TPC debts  for parastatal to grow

PARLIAMENTARY committee on infrastructure has directed the government to relieve the Tanzania Postal Corporation (TPC) of the burden of 888bn/- it pays annually to EAC pensioners for the parastatal to operate profitably. 

Tanzania Postal Corporation (TPC).

Speaking to reporters in Dar es Salaam, the Committee Chairman Selemani Kakoso said TPC can produce profitably if the government relieves it  of the burden.

He said in all EAC countries, the member state governments took the responsibility of paying its pensioners contrary to what is done in Tanzania.

“We call on the government to rethink the idea of paying the accrued debts amounting to 74m/- each month to enable its parastatal to make profits,“ he said.

Kakoso added that apart from that, TPC was paying 50m/- each month to Tanzania Revenue Authority (TRA) from the debts accrued to 26bn/-.

He said that up to date, TPC had paid 4.99bn/- to the EAC pensioners adding that it can last for over forty years.

 According to the chairman, the TPC had showcased its strategies that when practiced can enable it to pay dividends to the government.

“To be honest, we as parliament, we must strongly support their ideas and plans to ensure the firm make profits,” he said.

Seconding the argument, Suzan Kiwanga, Member of Parliament for Mlimba Constituent (CHADEMA) called on the government to review its postal police 2003 to enable it  utilise its own resources to access fund.

“TPC is so rich since it has a number of resources including buildings, open spaces and offices. Once the review of the policy is over, the said parastatal   would be able to accumulate a huge capital to run it,” she said.

Member of Parliament for Tunduru -North (CCM) Eng Ramo Makani underscored the need for the government to create a ground that was fair to all stakeholders.

He said: “The government had imposed heavy taxes on TPC and set light taxes to its competitors, a situation he said was hindering the capacity of the state owned form to deliver profitably.

He added that heavy taxes negatively affect the efforts initiated by the TPC to achieve its goals of making profits hence pay dividends.

Responding to the arguments, the Deputy Minister for Works, Transport, and Communication Eng Atashasta Nditiye promised to work on the matter and ensure  fast-tracking of  the operations of the TPC.

He said building capacity of the parastatals including TPC was one of the priorities of the fifth phase government.

“When the review of our postal policy 2003 is over, it will expand market horizon of TPC to provide a varieties of services.” he said.