In Summary
Lugumi Enterprises came into the spotlight in April 2016 when Parliament formed a team to investigate alleged dubious implementation of a Sh37 billion tender awarded to the firm by the Police Force. The company was cleared of any wrongdoing.
Dar es Salaam. At least three properties owned by Lugumi Enterprises Limited in Dar es Salaam are lined up for auction to recover billions of shillings in unpaid taxes.
Lugumi Enterprises came into the spotlight in April 2016 when Parliament formed a team to investigate alleged dubious implementation of a Sh37 billion tender awarded to the firm by the Police Force. The company was cleared of any wrongdoing.
A public notice published yesterday by Yono Auction Mart invited interested bidders to visit and inspect properties owned by Lugumi in Ilala and Kinondoni municipalities ten days before the auction date on September 9.
One of the properties is located on Mazengo Street in Upanga, Ilala Municipality (Plot No 701 with Certificate of Title No 18173/35). The two others are in Mbweni JKT, Kinondoni Municipality (Plot No 47 Block 2 with CT No 72456, and Plot No 57 Block 2 with CT No 11839).
The auction team visited the properties yesterday ahead of the public auction, Yono Auction Mart Ltd managing director Scolastica Kevela told The Citizen.
“We have visited the properties. As for how much Lugumi Enterprises owes in unpaid taxes, I advise you to get in touch with Tanzania Revenue Authority.
The information that I have is that the defaulter failed to clear a tax backlog whose deadline expired three months ago,” she said.
The public notice said successful bidders would be required to deposit 25 per cent of the sale price immediately after winning the bid and pay the balance within 14 days.
Contacted for comment, TRA Director of Taxpayer Services and Education Richard Kayombo confirmed that TRA had contracted Yono Auction Mart to auction the properties due to outstanding tax arrears Lugumi Enterprises Limited owed the government.
However, he refused to reveal the amount in question, citing confidentiality between TRA and its client.
“The amount owed is confidential, and cannot be made public,” Mr Kayombo told The Citizen.
However, a reliable source told The Citizen that the tax arrears totalled billions of shillings. Lugumi Enterprises officials could not be immediately reached for comment.
The Police Force contracted Lugumi Enterprises in 2011 to supply and install automated fingerprint devices at 108 district police stations across the country.
The tender entailed the installation and activation of an automated fingerprint information system (Afis).
But the Controller and Auditor General’s report for the 2013/14 financial year indicated that the equipment had been installed at only 14 police stations.
When the Public Accounts Committee requested an implementation progress report from the Police Force in early 2016, it was informed that the equipment had been installed at 153 police stations, including police headquarters in Dar es Salaam.
This prompted the Speaker of the National Assembly to initiate an investigation into the matter to establish the truth.
The Lugumi report was scheduled to be tabled in Parliament in June 30, 2016 by the chairman of the probe team, Mr Aeshi Hilaly (Sumbawanga Urban-CCM), but before he could read it ahead of an anticipated debate, Deputy Speaker Tulia Ackson scuttled the process through Standing Order 117(17).
She instead directed the government to ensure that the equipment was installed at all 108 police stations within three months.
The Citizen
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