DEMANDS ON THE 233 BILLION SHILLINGS LOANED FROM THE TANZANIAN GOVT. IN 1992

BY FELIX ANDREW,   The  Guardian,  Tanzania

1st April 2015

Luhaga Mpina

Twenty years ago under the Commodity Import Support (CIS) the Ministry of Finance occasioned the issuance of over 233bn/- to some 900 government institutions, companies and individuals and now, the Parliamentary Committee on Economic Affairs, Industry and Trade wants the money paid back.

Addressing a Committee meeting yesterday in Dodoma, Committee chairperson, Luhaga Mpina, said the money was loaned out between 1992 and 2002 by the Japanese government under its Non Project Grant and Debt Relief.

He said over the span of the two decades, the loans have accumulated interest of 12 percent per annum bringing the debt to over 600bn/-. 

 “We ask the Ministry of Finance and officials of Tanzania Investment Bank (TIB) to come before the committee next month and brief us on the development…part of the money was channeled through the ministry and TIB,” he said.

Shedding some light into the ongoing investigations, Konde Legislator Hatibu Said Haji (CUF) said the government hired a private debt collection firm, Msolopa at a cost of 95.1bn/- but maintained that time is still need to identify the names and the total number of people who have defaulted on the loan.

Nonetheless he named a few; “I have passed through the report by Msolopa and found prominent businessmen such as Quality garage and Azania Industry which are financially well off, why do we fail to collect our money,” he asked. 

Haji said he understood that there are some borrowers who have in the course of the 20 years died or gone bankrupt but insisted that the government should ensure that all their assets are confiscated to repay their part of the loan.

He also alleged that officials of Tanzania Investment Bank conspired with untrustworthy persons whom they allowed to fraudulently borrow the money.

The Special Seats Legislator, Josephine Genzabuke, (CCM) demanded stern measures to be taken against all defaulters of the loan.

“If you take a loan from Vicoba or PRIDE and fail to pay, they will come and take all your belongings such as Television sets and mattresses, why don’t we apply the same method  to the CIS borrowers?,” she asked.

Ziwani Legislator Ahmed Juma Ngwali, (CUF) queried why the government has remained silent since 1992 saying; “It is too long a time, where were you (government) all this time that you did not recover the money until today…this is not good for the development of our nation,” he said.

In response, Deputy Minister for Finance Mwigulu Nchemba said the government has not failed to collect the loans and reassured the House that; “We are continuing to recover the said money and none will be exempted.”

“If the government intend to cancel the debts it would do so through the Parliament and not otherwise,” he said.

“I would like to ensure the public that we cannot leave the money to the rich yet we chase away poor women selling chapatti in the streets for the little loans they borrow,” he said.    

     

The Commodity Import Support  scheme was initially administered by the Ministry of Finance, but from September 2002 it was moved to TIB, ostensibly for better management. It is understood that all attempts by TIB officials to recover the money from the debtors have proved futile.