NON PERFORMING PARASTATALS PUT ON NOTICE

Treasury Registrar (TR), Nehemiah Mchechu (right) pictured in Dar es Salaam receiving a dummy cheque for 2.5bn/- from Tanzania International Petroleum Reserves Limited (TIPER) in dividend to the Government. Left is TIPER Managing Director, Mohamed Mohamed and second left is the firm's Acting Board Chairman, Jamhuri Ngelime.

The Office of Treasury Registrar (OTR) will next month announce a list of parastatals that will include those to be disbanded, merged and given more time for improving their performance.

Treasury Registrar (TR) Nehemia Mchechu made the statement in Dar es Salaam on Thursday when receiving a dividend amounting to 2.5bn/- from the Tanzania International Petroleum Reserves (TIPER) Limited.

The company’s dividend is from its profit made during the year ending June 2022.

The TIPER is owned jointly between the government and the Oryx Energies.

During the event, Mr. Mchechu emphasised that the government wants accountability and efficiency in all its institutions.

He pointed out that TIPER was the among government institutions performing well in supporting economic development to help Tanzanians boost their income.

The TR further stated that his office was finalising assessment on government institutions with a view to carrying out reforms as directed by President Dr. Samia Suluhu Hassan.

“Next month we will have a meeting with President Samia and heads of government institutions and companies, we will announce those requiring merging, cancellation and others that need more time for improvements,” he said.

He said the reforms will touch heads of particular institutions, chairpersons and members of the boards who will need to have skills relevant to institutions they head.

According to him, for a long time now, public institutions have been performing poorly due to lack of strong management, hence the government has intended to make reforms in order to reinstate accountability.

“We will sign contracts with directors and chairpersons of the boards… we want them to fulfill what we have agreed,… but if they fail, we will open doors for them to leave so that others could come in ,” he pointed out.

“The era of having CEOs and board chairpersons without having skills on areas they head is now a thing of the past. We can’t continue paying salaries to people who cannot produce due to various reasons,” he added.

In ensuring that the government parastatals operate profitably, the government will give them capital, make improvements in laws and regulations, so that Tanzania could make steps ahead.

On his part, TIPER Managing Director Mohamed Mohamed, said in the past ten years, the company significantly improved its performance and invested a total of 73bn/-.

The company has continually re-invested its profits in continuous maintenance of its tanks and associated infrastructure in an endeavor of continuous improvement and capacity optimisation.

Mr Mohamed said currently the company has monthly storage capacity of 254 million litres, noting that by the end of this year the capacity will increase to 314 million litres upon completion of ongoing construction of infrastructures.

Daily News