Jafo tasks FCC to scrutinize undisclosed merger deals

DAR ES SALAAM: Minister of Trade and Industry, Dr. Selemani Jafo, has directed the Fair Competition Commission (FCC) to conduct a special audit in the mineral sector to establish the losses the country is incurring due to undisclosed mergers of companies.

The Minister issued the directive in Dar es Salaam on Monday during a tour of the Commission’s offices for familiarization.

Dr. Jafo, who is also the Kisarawe MP, was recently transferred to the Ministry of Trade and Industry, taking over from Dr. Ashatu Kijaji, who replaced him at the Vice President’s Office (Union and Environment).

“Intensive auditing should be conducted, especially in the mining sector. Go to Geita, go to Chunya, or Shinyanga,” said the Minister.

“If you conduct thorough auditing in the country, you will find that foreign companies have merged with local companies without notifying the FCC.”

According to him, the exercise will reveal the losses the country has incurred due to these undisclosed mergers.

He noted that the challenge lies in compliance with the country’s regulations, as some companies deliberately merge with local entities under the guise of providing technical support.

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At the end of the day, he stated, the foreign companies acquire all shares without notifying the FCC, a move that denies the country income.

He reminded the FCC management to ensure that the Commission discharges its duties diligently by enhancing the monitoring of company mergers.

According to him, proper oversight of mergers will help address unemployment by creating more jobs for locals.

Speaking earlier, FCC Director General William Erio said that as the sixth phase of the government improves the business environment to attract investors, the Commission is facilitating mergers in various sectors, including agriculture and oil and gas.

He informed the Minister that the FCC is supporting legal reforms that will enable the country to benefit more from merger deals.

On his part, the chairperson of the FCC’s Board of Directors, Aggrey Mlimuka, assured Dr. Jafo that the FCC will continue to work tirelessly to ensure that the Commission fulfills its obligations to the country.