MINISTER of State in the President’s Office, Regional Administration and Local Government, Mr Selemani Jafo has counselled trade unions leaders to invest the workers’ monthly deductions instead of channeling them in administrative and operation cost.
He made the remarks here yesterday when launching Tanzania Local Government Workers Union (TALGWU) Microfinance Public Limited Company in which members were allowed to buy shares.
“Use 25 per cent of the monthly two per cent of workers deductions to invest so that the members can benefit instead of using the whole amount on administration and operation,” said Mr Jafo.
He said some trade union performance is not that much impressive as he commended Talgwu for spending wisely the workers’ contributions by investing 49 per cent in the Microfinance and the remaining amount for operational costs.
Mr Jafo said most trade union leaders particularly the General Secretaries have been embezzling the workers’ contributions and when their office terms expired they set up new workers unions to gain money.
“Trade union leaders should do soul searching on how you service the members, and much more, where did their monthly contributions go?” queried Mr Jafo.
He added that the majority of the retirees die early since they did not invest enough and pensions are not enough. Thus they should be given an opportunity to invest in microfinance, then, they would have a wide range of avenues.
He was against the current system whereas the financial control is under the secretariat only and workers do not get feedback on how their contributions are spent.
The minister gave an example of the Teachers Trade Union which has invested in real estate which is a living feature of the members contributions.
He cautioned that members must know how they will benefit from the investment after retirement. He said Talgwu, apart from registering on the stock market, should go further and look into the possibility of setting up industries as well.
Managing Director of Talgwu Microfinance Public Limited Company, Mr Jackson Ngalama said they are determined to improve the welfare of their 58,000 members.
He said floating of the shares for sale is intended to increase its capital by earning 6bn/-. This means each member can buy a minimum of 50 shares which are sold at 1,000/- each.