Treasury: Jan 23 is dividends deadline

09Jan 2020
The Guardian
Treasury: Jan 23 is dividends deadline

FINANCE and Planning Minister Dr Philip Mpango yesterday vowed to sack top managements and board chairmen of parastatals, agencies and other government institutions who will not remit returns to the government by Tuesday, January 23.

Dr Philip Mpango

Dr Mpango made the remarks in Dodoma after receiving 500bn/- cheques for dividends from 13 parastatals and other institutions. The minister’s caution follows an earlier two-month ultimatum issued by President John Magufuli in November last year.

The minister praised parastatals, agencies and other government institutions for working on the president’s order to remit dividends before the January 23rd deadline.

“Directors and top managements of the remaining 36 institutions, agencies and parastatals should voluntarily resign on the night of January 23rd, 2020 if they fail to remit dividends to the government. This serves as the last warning, I will not remind them anymore,” he stated.

He gave an example of the Tanzania Broadcasting Corporation (TBC) which has for the first time issued a dividend to the government after 10 years of operations. He also urged universities to use the monies accumulated various researches to remit profits to the national treasury. The funds could be used issue loans to students in higher learning institutions, he remarked. 

“Issuance of dividends was introduced by our former leaders knowing the government has injected monies in these parastatals and agencies, hence the need for every institution to pay dividends,” he said, urging those institutions to enhance investments for more profits and dividend payments in the coming years.

Dr Mpango noted the government wants to reduce dependency on donor funds because their contributions have also been declining.

Deputy Minister Dr Ashatu Kijaji said most government institutions have not been paying dividends to the Treasury despite government investments.

“President Magufuli is spearheading national development and supervision of resources. The fifth phase government is doing well in ensuring proper supervision of resources,” she said.

Treasury Registrar Athumani Mbutuka named the 13 government institutions handing in dividends as the University of Dar es Salaam, Dodoma University (UDOM), Star Media, National Food Reserve Agency (NFRA), Procurement & Supplies Professionals and Technicians Board, Tanzania Tourist Board (TTB), National  Development Corporation (NDC), Moshi Cooperative University (MOCU), Mzumbe University, Muhimbili  University of Health and Allied Sciences (MUHAS), Export Processing Zone Authority (EPZA) Agriculture Input Trust Fund and the Open University of Tanzania (OUT).

In November last year, President Magufuli received dividends and various contributions totaling 1.05tr/- from 79 companies, parastatals and other institutions out of 266 which were required to issue dividends and contributions, while 187 failed to do so.

Speaking at the Chamwino State House, the President issued a 60-day ultimatum to boards of director and managements of parastatals and other government institutions to pay dividends.

He said the government had invested a total of 56trn/- in the companies which must remit returns to the government or their leaders leave office.

It is unacceptable that parastatals with boards of directors and chief executive officers and a host of experts, who are paid handsomely, operate on losses, the president had emphasized.