TR touts succession plan

THE Treasurer Registrar (TR), Mr Nehemiah Mchechu has directed the boards and management of various public parastatal organisations to come up with organisational succession plans in their annual strategies to enable the government to maintain talents which can be utilised at any time.

Mr Mchechu issued the directive on the second day of his meeting with board chairpersons and Chief Executive Officers (CEO’s) of public agencies, institutions and other statutory corporations held in Dar es Salaam, over the week.

According to the TR, the matter is one of the major problems facing public entities, a factor that is affecting their performance, and at times, causing lack of corporate memory.

According to Mr Mchechu, top decision makers of the entities have a duty of grooming their people to facilitate a viable power transition.

“Our aspiration is to make this matter a requirement so that when the boards submit their annual reports they also incorporate a list of three suggested names of individuals who can move their entities forward,” said Mr Mchechu, insisting  that the boards were free to expand their options by selecting eligible candidates from outside.

He added that: “You should not constrain yourself by just confining yourselves on internal selections…you can select two names from within your reach and one from other entities.”

According to him, some of the institutions have quite different complexities, indicating that some of the institutions were too big having a very large number of employees, citing an example of the state utility company Tanesco whose total employment base stands at 12,000 people.

He revealed that the earmarked individuals may be groomed to manage large institutions through practical training in the areas of management.

Once the individuals have qualified, he said they will be better and more competent to run the offices without pressure.

He, however, cautioned that the three suggested names were not permanent as they were subject to change depending on the conditions and situations.

On the other hand, the TR asked public entities’ leaders to effectively coordinate the role of ensuring the institutions contribute to the government coffers.

According to Mr Mchechu, in 2019/2020 financial year,  236 entities which are owned by government by 100 per cent, and 30 entities in which the government owns minority shares, contributed to the government coffers  a total of 695.1bn/-.

In 2020/2021 financial year, a total of 200 entities contributed a total of 477bn/- to the government.

He observed that in the 2021/2022 financial year, the number of entities went down to 136 institutions but its contribution was 645.9bn/-, noting that President Samia Suluhu Hasasan, in her directives, ordered loss-making institutions not to present their contributions.

“We have to ask ourselves why in 2021/2022 about 64 entities did not contribute…it may be due to lack of support or other factors.

“If we all comply with rules, including carefully making plans and judiciously executing them the revenues could double…the board chairs should be very strict with their management teams,” he stated.

The TR disclosed that for some entities it will take them a journey of about two to three years to be able to contribute to the government coffers.

He noted that the promising journey has to be known, communicated and reflected in their institutions’ strategies.

“In this year, the entities are supposed to move from 850bn/- to 1.1tri/-. I believe that we have an ability to double and triple the amounts. As shareholders we have the responsibility to ensure that we unlock the difficulty in some of the institutions so that they make contributions to the coffers,” stated the TR, urging the entities to be creative in using alternative sources of financing.

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