DAR ES SALAAM: THE Treasury Registrar (TR), Mr Nehemia Mchechu, has warned that his office will take decisive actions against any underperforming public entities, emphasising that the government has made significant invesments and each entity must strive to generate profit.
Speaking on Friday, Mr Mchechu stressed that the TR office will not hesitate to withdraw government shares or seek investors who can manage the businesses profitably.
He was speaking at the signing ceremony of the deed of handover and transfer of assets agreement and shareholders agreement between the TR’s office and Mponde Tea Factory in Dodoma.
Mponde Tea Factory, located in Bumbuli, Tanga Region, is the result of investments made by the Public Social Security Service Fund (PSSSF), the Workers Compensation Fund (WCF) and the TR’s office.
The investment so far has cost 2.5bn/- and completion will require 4.05bn/-. “I want to stress that the TR’s office will take action against all underperforming public entities in which the government has invested a substantial amount of money.
We will not hesitate to withdraw shares and return them to the government,” he insisted. Regarding the tea factory, Mr Mchechu explained that the TR’s office, in collaboration with PSSF and CWF, chose to invest in the tea crop due to its significance in the country.
He highlighted that the tea crop has been contributing an average of 45 million US dollars annually to the government coffers, providing approximately 50,000 direct jobs and over 2,000,000 indirect jobs.
“The TR’s office, in collaboration with PSSF and CWF, decided to invest in the tea crop to ensure that the farmers in the respective areas benefit from this government investment,” he said.
Moreover, Mr Mchechu encouraged farmers in Lushoto, Korogwe Districts and those near the factory areas to increase tea production.
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He emphasised the need for increased production to enable the factory to operate effectively, stating that without sufficient production, the factory will fall short of expectations. He instructed the factory management to ensure profitable operations and secure a market for the farmers’ produce in the area.
“The TR office will closely monitor the company’s operations. We will not hesitate to intervene if we observe any deviations from our agreement,” he stressed.
Mr Mchechu directed the company to adhere to business principles that promote balance and operational efficiency.
“Tea has been a crucial and reliable crop in our country’s economy. However, in recent years, its production has declined. The government, through the TR office, is making every effort to enhance tea production,” he remarked.
