Thursday, December 12, 2013
Ashamed as UDA was sold at a throw away price, says the report
The Parliamentary committee Chairman on Regional Administration and Local Government Authority has expressed his disappointment over the sale of the allotted shares to the private company known as Simon group which is currently running the operations of a state owned Dar es Salaam Transport Company, known by its famous acronym UDA. Tabling the committee’s annual implementation report for 2013, John Lwanji, an MP for Manyoni west (CCM) said that, the government made a great mistake with the decision it had made, as it did not consider the national interests at all and what could be the best outcome in terms of profit. He said his committee had received a joint report on the implementation of the entire operation of the UDA Company on 16th August and 1st Sept this year respectively for scrutiny. After having gone through the stakeholders’ reports, he noted that his committee discovered and concluded that the government cannot do anything to save the company at the moment due to the fact that the company was sold after having following the laid down rules of the tendering procedures. “The most painful thing to be noted over the purchase is that, this was done as in accordance of the law by following company’s operations Act, and that the Board of Directors were legally involved” he said. However, he noted that It is surprising to note that the allotted shares were sold to the current investor (Simon Group Ltd) at a throw away price as the property which had no its owner. A 33 paged report has quoted the Chairman as saying that, through a joint report which was presented before his committee members stated that, the inverting Simon Group Ltd had purchased each share at Sh. 145, this is contrary to the earlier estimated value of Sh. 1,618. The amount was evaluated by a consulting firm known as KPMG Ltd that had been contracted to evaluate the shares and had recommended the amount if the company could be sold with all its assets. The Chairman further noted that, it the company could be sold with its liabilities, and then each share could be fetched at a higher price of Sh. 2,632. “Therefore, with this valuations tendered one can see how the government authorities are performing their duties without considering the national interests, and hence they lack patriotism”, he said Following the decision made, and coupled by the truth available about the matter, his committee has advised the government’s decision through the registrar of the treasury and the city council to sell all their shares and withdraw from the ownership of the company. He said that, although have supported the government ’s decision, the committee has advised the government to make sure that the continued process of selling its allotted shares and those of the city council is legally conducted by entering into other contracts by endorsing all their agreements into a single contract. He insisted that, this should b e done contrary to what it is currently now whereby their agreements are within a single contract of the Memorandum of Understanding (MoU). He narrated and clarified that, the essence of this is to avoid any future troubles which might come in as in accordance to the current laws of contract, the MoU is not a contract deal that one cannot sue nor sued wherever there is any breach of any element that is agreed therein. Contributing his view during the debate, Sylvester Mabumba (CCM) Dole-Zanzibar was amazed and said that, it is shameful to see that some of the government leaders do not have mercy with their government when it comes to the decision making. Mabumba who is among the 17 committee members said that, the privatization process of the state owned transport agency was not done in a rightful manner bearing the fact that, anything sold should bring a profit at the end for the nation. However, he added that, the investor Simon Group earns Sh. 500 million per month, this is extremely painful and it shows lack of transparency and accountability on government properties.