Tanzanian president orders 187 public agencies to remit dividends in 60 days

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TANZANIAN President John Magufuli on Sunday ordered the Ministry of Finance and Planning to ensure that 187 public agencies remitted dividends to the government in 60 days before they faced dissolution.

‘If the 187 public agencies will fail to remit the dividends to the government in 60 days, the boards of directors of these agencies should dissolve themselves and their chief executive officers should count themselves sacked,’ said Magufuli at Chamwino State House in the capital Dodoma.

He was speaking shortly after 79 public agencies and institutions had remitted to the government dividends to the tune of $456 million, at an event televised live by state-run Tanzania Broadcasting Corporation.

The president wondered why the 187 public agencies had failed to submit dividends while the 79 agencies submitted such a handsome amount.

‘The 187 agencies claim that they were incurring losses while their board of directors and CEOs drive posh cars and hold meetings in luxurious hotels,’ wondered Magufuli.

‘We better dissolve unprofitable public agencies because they are a burden,’ said Magufuli.

He commended the 79 public agencies for remitting a total of 456 million dollars saying the money will be used for the implementation of development projects.

According to miscellaneous amendments through the Finance Act, 2011 public agencies are required to remit 15 percent of their gross revenues to the national Treasury.

 

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