JPM: WHY I SACKED THE TRA BOARD

President John Pombe Magufuli speaking when officiating the 31st graduation ceremony of the Open University of Tanzania (OUT) in Kibaha, Coast Region yesterday.

In Summary

• ·         Dr Magufuli made the revelation yesterday when officiating at the 31st graduation ceremony of the Open University of Tanzania (OUT) in Kibaha, Coast Region.
• ·         He said the board, chaired by Mr Bernard Mchomvu, authorised TRA to deposit money meant for the authority’s recurrent expenses in fixed deposit accounts in order to generate interest, which was to be shared among the agency’s top brass.

Kibaha. President John Magufuli dissolved the Tanzania Revenue Authority board (TRA) and sacked its chairman after the board approved the depositing of Sh26 billion in fixed deposit accounts in three different banks.

Dr Magufuli made the revelation yesterday when officiating at the 31st graduation ceremony of the Open University of Tanzania (OUT) in Kibaha, Coast Region.

He said the board, chaired by Mr Bernard Mchomvu, authorised TRA to deposit money meant for the authority’s recurrent expenses in fixed deposit accounts in order to generate interest, which was to be shared among the agency’s top brass.

“While we are working hard to fight ghost workers and people who illegally benefit from funds meant to help Tanzanians living in abject poverty, some senior officials have come up with new ways of personally benefiting from public funds,” said the President.

“Sometimes when we disburse money, these people deposit it in fixed deposit accounts under special arrangements with commercial banks.”

Dr Magufuli said the government had at times had to borrow its own money deposited in fixed deposit accounts by dishonest officials to implement development projects.

He added that he had no option but to dissolve the TRA board and remove its chairman after learning that the board had authorised the irregular depositing of tens of billions of shillings in fixed deposit accounts. The President also directed the Minister of Education, Science, Technology and Vocational Training, Prof Joyce Ndalichako, to investigate reports that the Tanzania Institute of Education had stashed away over Sh30 billion in fixed deposit accounts in five different banks.

The money, the Head of State said, was meant to be used to address various challenges in the education sector. President Magufuli sacked Mr Mchomvu and dissolved the TRA board last weekend. State House did not give the reason for the decision.

Mr Mchomvu was first appointed TRA board chairman in August 2011.

It was the second time in a year President Magufuli made high-profile changes at the authority. Less than a month after he was sworn in on November 5, last year, the Head of State sacked TRA Commissioner General Rished Bade and his deputy Lusekelo Mwaseba after it was established that importers had evaded over Sh80 billion in tax on 349 containers that were irregularly cleared at Dar es Salaam Port.

 Source: The Citizen