List of parastatals for disbanding, merging in offing

TREASURY Registrar (TR) Nehemia Mchechu stated on Thursday that next month his office will announce a list of parastatals that will include those to be disbanded, merged and given more time for improving their performance.

Registrar Mchechu made the statement in Dar es Salaam yesterday 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 emphasized the government wants accountability and efficiency in all its institutions.

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

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

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

He said the reforms will touch heads of the 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 because of lacking 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 fulfill what we have agreed, if they fail, we will open doors for them to leave so others could come,” 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’s companies 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 (10) 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 optimization.

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

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