Zitto’s committee asks CHC to evaluate government’s shares

THE Parliament’s Public Organization Account’s Committee (POAC) has instructed the Consolidated Holdings Corporation (CHC) board of directors to evaluate shares of the privatized companies in which the government owns below 30 percent stake in order to know their financial status from the economic point of view. This is among the four basic recommendations the POAC issued to the CHC after their meeting to deliberate the development of privatized companies and their financial reports which was held at Bunge offices on Thursday this week in Dar es Salaam. Speaking after going through the CHC quarterly financial report, the POAC Chairman who is also an MP for Kigoma North constituency (Chadema), Zitto Kabwe, told the CHC board directors to ensure that, they prepare a comprehensive audit report for both privatized and non-privatized companies in order to enable them know what to do with it. Zitto is on the view of the fact that, once the financial report of all companies is well prepared, the government would be in a position to decide either to announce their shares in Dar es Salaam Stock Exchange for public offer.

Parliament’s Public Organization Account’s Committee (POAC)Chairman who is also an MP for Kigoma North constituency (Chadema), Zitto Kabwe stressing a point during a Parliamentary debate sessions in Dodoma.

Elaborating, Mr Kabwe said, the government should retain most of the shares. “You should list at least 25 per cent of the companies’ shares at the Dar es Salaam Stock exchange for public offer, but make sure that the government remains the majority shareholder”. According to him, statistics shows that, out of over 400 companies the government has privatized since 1995, it owns over 50 percent share in only 62 companies including the most recently established Airtel mobile company which is incorporated by the Tanzania Telecommunications Company Ltd. Other instructions are that the CHC should stop its plans of putting on sale an historical building of Georges Grill which is located at the heart of the Dar es Salaam city centre, and instead it should do more renovations on it as it still has some importance to the government. In addition to that, the POAC has also ordered the CHC to abide by the instructions which prohibit their members to be associated with any activities within the Ministry of Finance or be part of their membership, for reasons that might cause direct interference with their affairs which are closely related. On the other hand, the CHC’s Chairperson Dr. Marcellina Chijoriga confirmed in an exclusive interview that, her Board will abide by all instructions given and take appropriate cautious approach when implementing the committee’s directives. The CHC came into being in 2007 to replace the then Public Sector Reform Commission (PSRC) which was established in mid 1996 with a view to conduct the privatization process on government companies as well as public parastatal organizations, a move that has helped increase the national economy.